Moderately diversified portfolio with a balanced risk profile and focus on North American equities

Report created on Aug 11, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio consists of a mix of ETFs and individual stocks, with a significant weighting in ETFs like iShares Core Conservative Allocation and Vanguard S&P 500. This composition reflects a balanced approach, aiming for both growth and stability. Compared to typical balanced portfolios, it leans slightly towards equities, which can offer higher returns but also increased volatility. To align more closely with benchmark compositions, consider adjusting the asset mix to ensure it matches your investment goals and risk tolerance.

Growth Info

Historically, the portfolio has performed well, with a CAGR of 13.47% and a maximum drawdown of -25.53%. This indicates strong growth potential but also highlights periods of significant loss. While past performance can provide insights, it's crucial to remember that it doesn't guarantee future results. Comparing this to a benchmark like the S&P 500 can help gauge relative performance. Consider diversifying further to potentially reduce drawdowns while maintaining growth.

Projection Info

The Monte Carlo simulation, using historical data, projects a wide range of potential outcomes, with an annualized return of 15.35%. Most simulations show positive returns, suggesting a favorable outlook. However, it's important to note that these projections are based on past data and may not predict future performance accurately. Regularly revisiting these projections can help you adjust your strategy to align with changing market conditions and personal goals.

Asset classes Info

  • Stocks
    53%
  • Bonds
    23%
  • Other
    21%
  • Cash
    2%

The portfolio is diversified across stocks, bonds, and other assets, with stocks making up over half of the allocation. This reflects a moderate risk profile, suitable for investors seeking growth while managing volatility. Compared to benchmark norms, there's a balanced exposure to bonds and other assets, which can provide stability. Consider maintaining this balance to ensure the portfolio remains resilient against market fluctuations.

Sectors Info

  • Technology
    21%
  • Telecommunications
    16%
  • Financials
    7%
  • Consumer Discretionary
    6%
  • Industrials
    5%
  • Health Care
    4%
  • Consumer Staples
    2%
  • Energy
    2%
  • Basic Materials
    2%
  • Utilities
    1%
  • Real Estate
    1%

Sector allocation shows a strong emphasis on technology and communication services, which together account for over 36% of the portfolio. This concentration can lead to higher volatility, especially if these sectors face downturns. While tech-heavy portfolios can benefit from innovation and growth, they may also be more sensitive to economic changes. Consider diversifying into other sectors to mitigate risks and achieve a more balanced exposure.

Regions Info

  • North America
    57%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Asia Developed
    2%
  • Japan
    2%

The portfolio is heavily weighted towards North America, with limited exposure to other regions like Europe and Asia. This geographic concentration can lead to higher risk if the North American market underperforms. Diversification across regions can help manage this risk by spreading exposure. Consider increasing allocations to underrepresented areas to enhance global diversification and capitalize on international growth opportunities.

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.

Portfolio optimization suggests that a more efficient portfolio could achieve higher returns at the same risk level. The Efficient Frontier concept helps identify the best risk-return ratio based on current assets. While the current portfolio is well-structured, exploring small allocation changes could potentially enhance returns without increasing risk. Consider revisiting your asset allocation to ensure it aligns with your risk tolerance and financial goals.

Dividends Info

  • Global X Artificial Intelligence & Technology ETF 0.10%
  • iShares Core Conservative Allocation ETF 2.20%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Alphabet Inc Class A 0.30%
  • JPMorgan Ultra-Short Income ETF 5.20%
  • VanEck Semiconductor ETF 0.40%
  • AT&T Inc 3.80%
  • Vanguard Short-Term Corporate Bond Index Fund ETF Shares 4.00%
  • Vanguard S&P 500 ETF 1.30%
  • Weighted yield (per year) 1.40%

The portfolio's dividend yield is 1.4%, with contributions from various ETFs and stocks like AT&T and the Vanguard Short-Term Corporate Bond Index Fund. Dividends can provide a steady income stream, especially in volatile markets. For income-focused investors, maintaining or increasing dividend-paying assets could be beneficial. Consider reviewing the dividend yields of existing holdings and exploring options to enhance this aspect of the portfolio.

Ongoing product costs Info

  • Global X Artificial Intelligence & Technology ETF 0.68%
  • iShares Core Conservative Allocation ETF 0.15%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • GraniteShares Gold Trust 0.18%
  • JPMorgan Ultra-Short Income ETF 0.18%
  • abrdn Physical Silver Shares ETF 0.30%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard Short-Term Corporate Bond Index Fund ETF Shares 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.21%

The portfolio's total expense ratio (TER) is 0.21%, which is relatively low and supports better long-term returns by minimizing costs. Lower costs mean more of your investment returns stay in your pocket. This alignment with best practices is commendable. To maintain this advantage, regularly review the TER of your holdings and consider replacing high-fee assets with more cost-effective options if necessary.

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