Balanced and highly diversified portfolio with a strong focus on growth sectors and major equity markets

Report created on Aug 3, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is predominantly invested in equities, with a significant allocation to the Vanguard S&P 500 ETF, symbolizing a strong preference for large-cap U.S. stocks. The inclusion of international equities and specialized ETFs like the Invesco NASDAQ 100 ETF indicates a tilt towards technology and growth sectors. The small allocation to SPDR® Gold Shares introduces a non-equity asset class, albeit minimally. This composition suggests a balanced approach, aiming to capture growth while slightly hedging against market volatility through diversification across geographies and sectors.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 14.10% and a maximum drawdown of -26.13%, the portfolio has demonstrated resilience and strong growth potential. The days contributing to 90% of returns highlight the impact of significant market movements on performance. While past success is notable, it's essential to remember that historical performance is not a reliable indicator of future results. Investors should consider long-term trends and market conditions when evaluating performance data.

Projection Info

Monte Carlo simulations, which forecast future portfolio performance by analyzing historical data, show a wide range of outcomes, with a median increase of 486%. While these projections provide valuable insights, they are based on past market behavior, which may not predict future movements accurately. Therefore, while optimistic, these forecasts should be one of many tools used in decision-making.

Asset classes Info

  • Stocks
    97%
  • Other
    2%
  • Cash
    1%

The portfolio's asset class distribution is heavily skewed towards stocks (97%), providing a high growth potential but also exposing it to market volatility. The minimal allocation to other asset classes (2% in gold and 1% in cash) offers limited diversification benefits. Expanding into additional asset classes could help mitigate risk without significantly compromising growth potential.

Sectors Info

  • Technology
    30%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Telecommunications
    9%
  • Industrials
    9%
  • Health Care
    9%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

A 30% allocation to technology underscores the portfolio's growth orientation, given the sector's historical performance. However, this concentration also increases susceptibility to sector-specific downturns. The spread across financial services, consumer cyclicals, and other sectors helps balance this risk, but investors should monitor sector concentrations to ensure alignment with their risk tolerance and market outlook.

Regions Info

  • North America
    79%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

The geographical allocation, with 79% in North America and a modest presence in developed and emerging markets, provides a solid foundation in stable economies while capturing growth in less mature markets. However, the limited exposure to emerging markets might mean missed opportunities in high-growth regions. Considering a slight increase in allocation to emerging markets could enhance diversification and potential returns.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    30%
  • Mid-cap
    16%
  • Small-cap
    4%
  • No data
    2%
  • Micro-cap
    1%

The focus on mega and big-cap stocks (75% combined) aligns with the portfolio's balanced risk profile, offering stability and potential for growth. However, the limited exposure to small and micro-cap stocks could mean missing out on higher growth opportunities these segments may offer. A slight adjustment to include more small and micro-cap exposure could introduce higher growth potential, albeit with increased volatility.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Invesco NASDAQ 100 ETF
    High correlation

The high correlation between the Schwab U.S. Large-Cap Growth ETF and the Invesco NASDAQ 100 ETF indicates overlapping investments, reducing the portfolio's diversification benefits. Identifying and reducing investments in highly correlated assets can enhance portfolio efficiency by lowering risk without sacrificing potential 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.

Considering the Efficient Frontier, the portfolio could be optimized by addressing the overlap in highly correlated assets. This optimization would not only reduce redundancy but also potentially improve the risk-return profile by reallocating those funds to underrepresented asset classes or sectors, enhancing diversification without necessarily increasing risk.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Small-Cap Value Index Fund ETF Shares 2.10%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.42%

The portfolio's average dividend yield of 1.42% contributes to its total return, providing a steady income stream in addition to capital appreciation. The higher yields from the Vanguard Small-Cap Value Index Fund ETF Shares and Vanguard Total International Stock Index Fund ETF Shares enhance income, particularly valuable in volatile or declining markets. Regularly reviewing dividend-yielding investments can ensure they continue to meet income and growth objectives.

Ongoing product costs Info

  • SPDR® Gold Shares 0.40%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Small-Cap Value Index Fund ETF Shares 0.07%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.05%

With a Total Expense Ratio (TER) averaging 0.05%, the portfolio benefits from low-cost investments, maximizing the potential for net returns over time. The cost efficiency is impressive, especially given the diversification and growth orientation of the portfolio. Maintaining focus on low-cost investments is crucial for enhancing long-term performance.

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