Get this analysis for your own portfolio Paste your holdings — the first report is free and takes about a minute. Analyze mine

Balanced portfolio with a focus on value and dividend growth and moderate risk exposure

Report created on Jan 10, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification
Curious how your own portfolio scores? Same analysis, your holdings. First report free — no card needed. Analyze mine

Positions

The portfolio is composed of five ETFs, with a heavy emphasis on the Vanguard Mega Cap Value Index Fund ETF, which takes up 50% of the total allocation. This is complemented by a 15% allocation to short-term T-Bills, and smaller allocations to emerging markets and dividend-focused funds. This mix suggests a balanced approach, but with significant weight in large-cap value stocks. Compared to common benchmarks, this portfolio leans more heavily towards value and dividend strategies. Consider diversifying further to include growth-oriented or sector-specific ETFs to enhance balance.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 9.13%, which is robust when compared to market averages. However, the max drawdown of -31.23% indicates exposure to significant downside risk. This suggests that while the portfolio can deliver strong returns, it is also susceptible to market volatility. Monitoring and adjusting allocations to mitigate potential drawdowns, especially during turbulent market periods, could help stabilize returns.

Projection Info

Forward projections using Monte Carlo simulations offer insights into potential future outcomes. With an annualized return of 8.69% and 962 out of 1,000 simulations showing positive returns, the outlook is generally favorable. However, it's crucial to note that these simulations rely on historical data, which may not predict future market conditions. Regularly reviewing and adjusting the portfolio to align with changing market trends and personal financial goals is advisable.

Asset classes Info

  • Stocks
    84%
  • Cash
    16%

The portfolio primarily consists of stocks (84.4%) and cash (15.6%), with a negligible amount in other assets. This allocation is typical for a balanced portfolio, providing growth potential while maintaining liquidity. However, the reliance on equities suggests vulnerability to market fluctuations. Introducing bonds or other fixed-income securities could enhance stability and provide a buffer against stock market volatility, aligning with a balanced risk approach.

Sectors Info

  • Financials
    20%
  • Health Care
    13%
  • Technology
    12%
  • Industrials
    10%
  • Consumer Staples
    9%
  • Energy
    6%
  • Consumer Discretionary
    6%
  • Telecommunications
    4%
  • Utilities
    3%
  • Basic Materials
    2%
  • Real Estate
    1%

Sector allocation is diversified across financial services, healthcare, and technology, among others. The largest exposure is in financial services at nearly 20%, which aligns with value and dividend strategies. However, this concentration could pose risks if the sector faces downturns. Ensuring a more even distribution across sectors could enhance resilience against sector-specific risks and contribute to more consistent performance across varying economic conditions.

Regions Info

  • North America
    70%
  • Asia Emerging
    9%
  • Asia Developed
    3%
  • Africa/Middle East
    2%
  • Latin America
    1%
  • Europe Developed
    1%

Geographically, the portfolio is heavily weighted towards North America (69.56%), with limited exposure to other regions. This concentration may limit diversification benefits and expose the portfolio to regional economic shifts. Increasing allocations to emerging markets or developed economies outside North America could mitigate regional risks and leverage growth opportunities globally, enhancing overall portfolio resilience and return potential.

Redundant positions Info

  • iShares Core Dividend Growth ETF
    Vanguard Mega Cap Value Index Fund ETF Shares
    Schwab U.S. Dividend Equity ETF
    High correlation

The portfolio features highly correlated assets, particularly among the dividend-focused ETFs. High correlation means these assets tend to move together, which can limit diversification benefits during market downturns. To improve diversification, consider replacing some of these correlated assets with others that have lower correlation. This could help reduce risk and improve the portfolio’s ability to withstand market volatility.

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.

Open the Portfolio Builder Reshape your holdings and watch every metric recalculate live. Try it

The portfolio could potentially be optimized using the Efficient Frontier to achieve a better risk-return balance. However, removing highly correlated assets first is recommended to enhance diversification. The Efficient Frontier concept helps identify the optimal asset allocation for the best possible risk-return ratio. This process doesn’t necessarily mean adding new assets but reallocating existing ones for improved efficiency.

Dividends Info

  • SPDR® Bloomberg 1-3 Month T-Bill ETF 5.00%
  • iShares Core Dividend Growth ETF 2.30%
  • Vanguard Mega Cap Value Index Fund ETF Shares 2.30%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 3.30%
  • Weighted yield (per year) 3.00%

The portfolio provides a total dividend yield of 3.0%, with notable contributions from the Schwab U.S. Dividend Equity ETF and the SPDR® Bloomberg T-Bill ETF. This yield supports income generation, which can be particularly appealing for investors seeking regular cash flow. Maintaining a balance between dividend yield and growth potential is key to ensuring both income and capital appreciation over time.

Ongoing product costs Info

  • SPDR® Bloomberg 1-3 Month T-Bill ETF 0.14%
  • iShares Core Dividend Growth ETF 0.08%
  • Vanguard Mega Cap Value Index Fund ETF Shares 0.07%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.08%

The portfolio's total expense ratio (TER) is impressively low at 0.08%, which is beneficial for long-term performance by minimizing cost drag on returns. This aligns well with best practices for cost-efficient investing. Continually monitoring and comparing costs with similar investment products can ensure the portfolio remains cost-effective and competitive, maximizing net returns over the investment horizon.

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

Compare your holdings

How much do the funds you hold actually overlap with the ones people weigh them against?

SCHD vs SGOV

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