A balanced portfolio with strong growth potential and broad diversification across sectors and geographies

Report created on Dec 21, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is composed of a mix of common stocks and ETFs, with a significant portion allocated to TKO Group Holdings Inc. This allocation is more concentrated than typical balanced portfolios, which often spread risk more evenly across various assets. The portfolio's broad diversification score indicates a well-diversified structure, yet the high concentration in a single stock suggests a potential area for improvement. To enhance diversification, consider reducing the allocation to TKO Group Holdings Inc. and redistributing it among other existing or new investments to achieve a more balanced asset distribution.

Growth Info

The portfolio's historical performance, with a CAGR of 15.92%, suggests strong past growth. This rate surpasses many benchmark indices, indicating effective asset selection and management. However, it's important to note the significant max drawdown of -50.89%, which highlights the potential for substantial losses during market downturns. While past performance is not a guarantee of future results, maintaining a diversified asset mix can help mitigate such risks. Consider periodic reviews to ensure the portfolio aligns with your risk tolerance and investment goals, especially during volatile market conditions.

Projection Info

The Monte Carlo simulation, which uses historical data to project potential future outcomes, shows promising results with a 50th percentile end value of 421.31%. This suggests a favorable outlook, although the inherent limitations of simulations mean these projections are not guaranteed. The high number of simulations with positive returns (965 out of 1,000) indicates a generally optimistic forecast. To prepare for various scenarios, consider maintaining a flexible investment strategy that can adapt to changing market conditions while keeping an eye on potential risks and opportunities.

Asset classes Info

  • Stocks
    72%
  • Other
    16%
  • Real Estate
    11%

The portfolio's asset class distribution includes a dominant 71.81% in stocks, complemented by real estate and other assets. This allocation provides a solid foundation for growth while offering some diversification benefits. Compared to benchmark norms, the high stock allocation may expose the portfolio to greater market volatility. To enhance stability, consider increasing exposure to fixed-income or alternative investments, which can provide a buffer against stock market fluctuations and contribute to a more balanced risk-return profile.

Sectors Info

  • Telecommunications
    26%
  • Consumer Staples
    19%
  • Real Estate
    12%
  • Financials
    8%
  • Technology
    5%
  • Energy
    4%
  • Consumer Discretionary
    3%
  • Industrials
    2%
  • Basic Materials
    2%
  • Health Care
    2%

The portfolio features a notable concentration in the communication services sector, making up 25.68% of the total allocation. While this sector has potential for growth, it also introduces sector-specific risks, especially during periods of regulatory changes or technological disruptions. The presence of multiple sectors, including consumer defensive and real estate, adds diversification. To further mitigate sector-specific risks, consider adjusting the allocations to achieve a more balanced sectoral distribution, which can help stabilize returns during sector downturns.

Regions Info

  • North America
    65%
  • Asia Emerging
    10%
  • Asia Developed
    4%
  • Latin America
    2%
  • Africa/Middle East
    2%

The portfolio's geographic allocation is heavily weighted towards North America, accounting for 64.56% of the total. While this reflects a strong focus on the US market, it may limit exposure to growth opportunities in other regions. The presence of emerging markets, such as Asia and Latin America, adds some diversification, but their relative underweighting suggests room for expansion. To capitalize on global growth trends, consider increasing exposure to underrepresented regions, which can enhance diversification and potentially improve long-term returns.

Risk vs. return

This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.

Click on the colored dots to explore allocations.

The portfolio's current asset allocation could potentially be optimized using the Efficient Frontier, which seeks the best possible risk-return ratio. This approach focuses on reallocating existing assets to achieve maximum returns for a given level of risk. However, it's important to note that efficiency does not necessarily equate to diversification or other investment goals. Regularly reviewing and adjusting the portfolio in line with the Efficient Frontier can help ensure that it remains aligned with your risk tolerance and financial objectives, maximizing potential returns while managing risk.

Dividends Info

  • Schwab Fundamental Emerging Markets Large Company Index ETF 0.80%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • Vanguard Real Estate Index Fund ETF Shares 2.90%
  • Walmart Inc 0.70%
  • Weighted yield (per year) 1.10%

The portfolio's total dividend yield of 1.1% is modest, with significant contributions from the Schwab U.S. Dividend Equity ETF and Vanguard Real Estate Index Fund ETF Shares. Dividends can provide a steady income stream and contribute to total returns, especially in low-interest-rate environments. For investors seeking income, consider increasing allocations to high-dividend-paying assets. However, ensure that the pursuit of yield does not compromise the overall growth potential and risk profile of the portfolio. Balancing growth and income is key to achieving long-term investment goals.

Ongoing product costs Info

  • Schwab Fundamental Emerging Markets Large Company Index ETF 0.39%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard Real Estate Index Fund ETF Shares 0.12%
  • Weighted costs total (per year) 0.10%

The portfolio's total expense ratio (TER) of 0.1% is impressively low, supporting better long-term performance by minimizing costs. Lower fees can significantly enhance net returns over time, especially when compounded. The inclusion of low-cost ETFs, such as those from Schwab and Vanguard, contributes to this efficiency. Continuously monitoring and managing costs is crucial for maintaining an optimal portfolio. Consider evaluating existing holdings periodically to ensure they remain cost-effective, and explore opportunities to replace higher-fee assets with more economical alternatives.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey