Growth-focused portfolio with broad diversification and a blend of index funds and stocks

Report created on Aug 18, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio showcases a strategic mix of index funds, ETFs, and individual stocks, with a significant emphasis on equities, accounting for 97% of the allocation. This composition aligns with the portfolio's growth-oriented risk classification, leveraging both broad market indices and specific sector exposures. The inclusion of funds targeting international markets and emerging economies enhances diversification, though the majority stake remains in North American assets. This structure is designed to capture global growth opportunities while anchoring the portfolio with the stability of large, well-established markets.

Growth Info

With a historical Compound Annual Growth Rate (CAGR) of 8.25% and a maximum drawdown of -32.09%, the portfolio demonstrates resilience and potential for long-term growth. The performance metrics underscore the portfolio's ability to recover from market downturns and capitalize on upward trends. However, it's crucial to remember that past performance is not indicative of future results, and investors should consider their risk tolerance and investment horizon when evaluating these figures.

Projection Info

Utilizing Monte Carlo simulations, which generate a range of possible outcomes based on historical data, the portfolio's forward projection offers a broad perspective on potential future performance. With key percentiles indicating a wide range of outcomes, from a 5th percentile at -39.0% to a 67th percentile at 283.7%, it underscores the inherent uncertainty in market movements. These projections provide valuable insights but should be interpreted with caution, as they are based on past data and cannot predict unforeseen market shifts.

Asset classes Info

  • Stocks
    97%
  • Cash
    2%
  • Bonds
    1%

The portfolio's asset class distribution, heavily skewed towards stocks, reflects a strong growth orientation. While this concentration in equities suggests potential for high returns, it also carries a higher risk level, especially in volatile market conditions. Diversifying across asset classes, including bonds and cash, could provide a buffer against market fluctuations, enhancing the portfolio's resilience without significantly compromising its growth potential.

Sectors Info

  • Technology
    23%
  • Financials
    16%
  • Industrials
    11%
  • Telecommunications
    11%
  • Health Care
    9%
  • Consumer Discretionary
    9%
  • Consumer Staples
    6%
  • Basic Materials
    3%
  • Energy
    3%
  • Utilities
    3%
  • Consumer Discretionary
    3%
  • Real Estate
    2%

Sector allocation reveals a balanced mix, with technology and financial services leading the portfolio's composition. This sectoral distribution aligns with a growth-focused strategy, leveraging sectors known for innovation and economic significance. However, the concentration in these sectors may expose the portfolio to sector-specific risks, underlining the importance of monitoring sectoral shifts and considering broader diversification to mitigate potential vulnerabilities.

Regions Info

  • North America
    62%
  • Europe Developed
    17%
  • Asia Emerging
    7%
  • Japan
    5%
  • Asia Developed
    5%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic diversification is a strength of this portfolio, with investments spread across North America, Europe, and emerging markets in Asia. This global exposure positions the portfolio to benefit from growth in various economies, reducing the impact of regional downturns. However, the predominant focus on North American assets suggests room for increased allocation to developing regions, which could offer higher growth potential albeit with increased risk.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    31%
  • Mid-cap
    14%
  • Small-cap
    3%
  • Micro-cap
    1%

The market capitalization breakdown, favoring mega and large-cap stocks, suggests a preference for stability and established performance. While this can offer a solid foundation for growth, incorporating a higher proportion of medium, small, and micro-cap stocks could introduce more growth opportunities and diversification benefits, albeit with a corresponding increase in risk.

Redundant positions Info

  • CAPITAL INCOME BUILDER CLASS A
    INCOME FUND OF AMERICA CLASS A
    High correlation
  • FIDELITY ZERO INTERNATIONAL INDEX FUND
    SCHWAB INTERNATIONAL INDEX FUND SELECT SHARES
    High correlation
  • iShares Core MSCI Emerging Markets ETF
    Schwab Emerging Markets Equity ETF
    High correlation
  • SCHWAB TOTAL STOCK MARKET INDEX FUND SELECT SHARES
    Schwab S&P 500 Index Fund
    High correlation

The portfolio contains several highly correlated asset groups, indicating overlap in market exposure and potential redundancy. This overlap can limit diversification benefits and may not contribute to risk reduction as effectively as a more varied asset selection. Streamlining the portfolio by reducing or eliminating these redundancies could enhance overall performance without significantly altering the risk profile.

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 configuration suggests an opportunity for optimization, particularly by addressing asset overlap and enhancing diversification. By reallocating assets to reduce redundancy and potentially exploring underrepresented sectors or geographies, the portfolio could achieve a more efficient risk-return profile. This optimization process should carefully consider the investor's risk tolerance and investment objectives to ensure alignment with their financial goals.

Dividends Info

  • AMCAP FUND CLASS A 0.40%
  • INCOME FUND OF AMERICA CLASS A 3.70%
  • AMERICAN MUTUAL FUND CLASS A 5.70%
  • AMERICAN FUNDS FUNDAMENTAL INVESTORS CLASS A 0.80%
  • NEW PERSPECTIVE FUND CLASS A 0.50%
  • CAPITAL INCOME BUILDER CLASS A 3.00%
  • FIDELITY CHINA REGION FUND FIDELITY CHINA REGION FUND 1.10%
  • Fidelity Total Market Index Fund 1.00%
  • FIDELITY ZERO INTERNATIONAL INDEX FUND 2.40%
  • Alphabet Inc Class A 0.40%
  • iShares Core MSCI Emerging Markets ETF 3.00%
  • Schwab Emerging Markets Equity ETF 2.60%
  • SMALLCAP WORLD FUND INC CLASS A 0.50%
  • SCHWAB INTERNATIONAL INDEX FUND SELECT SHARES 2.70%
  • Schwab S&P 500 Index Fund 6.70%
  • SCHWAB TOTAL STOCK MARKET INDEX FUND SELECT SHARES 7.90%
  • Weighted yield (per year) 3.25%

The portfolio's average dividend yield of 3.25% contributes to its total return, providing a steady income stream alongside capital appreciation. This yield is a testament to the portfolio's balanced approach, combining growth potential with income generation. For investors seeking both growth and income, maintaining or slightly adjusting the focus on dividend-yielding assets could offer a desirable balance.

Ongoing product costs Info

  • AMCAP FUND CLASS A 0.64%
  • INCOME FUND OF AMERICA CLASS A 0.58%
  • AMERICAN MUTUAL FUND CLASS A 0.58%
  • AMERICAN FUNDS FUNDAMENTAL INVESTORS CLASS A 0.58%
  • NEW PERSPECTIVE FUND CLASS A 0.73%
  • CAPITAL INCOME BUILDER CLASS A 0.59%
  • FIDELITY CHINA REGION FUND FIDELITY CHINA REGION FUND 0.91%
  • Fidelity Total Market Index Fund 0.02%
  • iShares Core MSCI Emerging Markets ETF 0.09%
  • Schwab Emerging Markets Equity ETF 0.11%
  • SMALLCAP WORLD FUND INC CLASS A 1.04%
  • SCHWAB INTERNATIONAL INDEX FUND SELECT SHARES 0.06%
  • Schwab S&P 500 Index Fund 0.02%
  • SCHWAB TOTAL STOCK MARKET INDEX FUND SELECT SHARES 0.03%
  • Weighted costs total (per year) 0.23%

With an average Total Expense Ratio (TER) of 0.23%, the portfolio is cost-efficient, minimizing the impact of fees on returns. This low cost structure is particularly beneficial for long-term growth, as even small differences in fees can have a significant impact over time. Continuously monitoring and managing costs will remain a key factor in maximizing net returns.

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