Balanced and highly diversified portfolio with a strategic mix across asset classes and geographies

Report created on Jul 21, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio showcases a well-thought-out composition, balancing between U.S. and international equities, with a sprinkling of real estate and commodities for diversification. The heavy weighting towards large-cap ETFs, particularly in the U.S., suggests a tilt towards stability and lower volatility, characteristic of large, established companies. The presence of mid-cap, small-cap, and emerging market ETFs introduces growth potential, albeit with increased risk. The real estate and commodities ETFs add an alternative investment flavor, potentially offering inflation protection and non-correlated returns to traditional stock and bond investments.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.97%, with a maximum drawdown of -24.69%. This performance is indicative of a balanced risk-return profile, capable of delivering robust growth while experiencing significant, yet manageable, periods of decline. The days contributing to 90% of returns highlight the portfolio's sensitivity to market movements and the importance of staying invested through market cycles.

Projection Info

Using Monte Carlo simulation, which projects future performance based on historical data, the portfolio shows a wide range of outcomes. The median simulation suggests a potential return of 327.6%, demonstrating the portfolio's capacity for substantial growth. However, it's crucial to remember that simulations rely on past data and cannot predict future market conditions with certainty. The high percentage of simulations with positive returns underscores the portfolio's resilience.

Asset classes Info

  • Stocks
    88%
  • Cash
    5%
  • Real Estate
    5%
  • Other
    2%

The allocation across asset classes with 88% in stocks, 5% each in cash and real estate, and 2% in other (including commodities), underscores a growth-oriented strategy with moderate liquidity and inflation hedging components. This mix supports capital appreciation while offering some buffer against market volatility and inflationary pressures.

Sectors Info

  • Technology
    20%
  • Financials
    16%
  • Industrials
    12%
  • Consumer Discretionary
    10%
  • Health Care
    8%
  • Real Estate
    8%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Basic Materials
    4%
  • Energy
    3%
  • Utilities
    2%

Sectoral allocation emphasizes technology, financial services, and industrials, aligning with the portfolio's growth orientation. The significant allocation to technology may increase volatility but also offers high growth potential. Balancing with more stable sectors like financial services and industrials can mitigate risk while capitalizing on economic growth.

Regions Info

  • North America
    62%
  • Europe Developed
    13%
  • Asia Emerging
    6%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic spread, with a dominant 62% in North America and meaningful exposures to developed Europe and emerging markets, ensures global diversification. This allocation benefits from the stability of developed markets and the growth potential of emerging economies. However, the portfolio may benefit from increased exposure to underrepresented regions to enhance diversification further.

Market capitalization Info

  • Mega-cap
    32%
  • Large-cap
    25%
  • Mid-cap
    21%
  • Small-cap
    13%
  • Micro-cap
    2%

The market capitalization breakdown reflects a balanced approach, with a lean towards larger companies for stability (Mega and Big caps comprising 57%) but also a healthy exposure to mid, small, and micro-caps for growth. This diversification across market caps can help smooth out performance over time.

Redundant positions Info

  • Schwab U.S. Mid-Cap ETF
    Schwab U.S. Small-Cap ETF
    High correlation

The high correlation between the Schwab U.S. Mid-Cap and Small-Cap ETFs suggests redundancy, limiting diversification benefits. Diversification aims to spread risk across uncorrelated assets, so reducing overlap can enhance portfolio efficiency without necessarily increasing risk.

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 Efficient Frontier analysis suggests that the portfolio can achieve a higher expected return of 2.84% at the same risk level by adjusting asset allocation, particularly by reducing overlapping assets. This optimization indicates room for improvement in diversification and efficiency, aligning more closely with the portfolio's balanced risk profile.

Dividends Info

  • abrdn Bloomberg All Commodity Strategy K-1 Free ETF 3.00%
  • Schwab U.S. Small-Cap ETF 1.50%
  • Schwab U.S. Mid-Cap ETF 1.40%
  • Schwab U.S. Large-Cap ETF 1.20%
  • iShares® 0-3 Month Treasury Bond ETF 4.50%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.70%
  • Vanguard Real Estate Index Fund ETF Shares 3.90%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 2.03%

The portfolio's overall dividend yield of 2.03% contributes to its total return, providing a steady income stream in addition to capital appreciation. This yield, while not the highest, balances growth and income, suitable for investors seeking both.

Ongoing product costs Info

  • abrdn Bloomberg All Commodity Strategy K-1 Free ETF 0.26%
  • Schwab U.S. Small-Cap ETF 0.04%
  • Schwab U.S. Mid-Cap ETF 0.04%
  • Schwab U.S. Large-Cap ETF 0.03%
  • iShares® 0-3 Month Treasury Bond ETF 0.07%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard Real Estate Index Fund ETF Shares 0.12%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.06%

With a total Expense Ratio (TER) of 0.06%, the portfolio is cost-efficient, maximizing investor returns by minimizing fees. Lower costs are crucial for long-term growth, as they compound positively over time, leaving more in the investor's pocket.

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