A balanced and broadly diversified portfolio with strong technology and US focus

Report created on Aug 22, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is well-structured, comprising four ETFs with equal weightings across major US indices and international stocks. This design reflects a strategic approach to capturing growth from the US market while incorporating global diversification. The simplicity of the portfolio, focusing on broad market ETFs, is a strength, ensuring coverage of key sectors and geographies. However, the heavy allocation to the US and technology sectors indicates a potential concentration risk, suggesting a review of sector and geographic diversification could enhance resilience against market volatility.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 15.32%, with a maximum drawdown of -26.60%. These figures suggest robust growth potential tempered by significant volatility, as indicated by the drawdown. The days contributing most to returns highlight the portfolio's susceptibility to short-term market movements. Comparing this performance to benchmarks would provide context, but the historical growth rate is impressive, suggesting strong management and asset selection. Investors should remember, though, that past performance is not a reliable indicator of future results.

Projection Info

Monte Carlo simulations, with 1,000 iterations, predict a wide range of outcomes, from a 121.9% to 844.4% increase in portfolio value at key percentiles. This broad range underscores the inherent uncertainty in market movements, though the high percentage of simulations with positive returns (997 out of 1,000) is encouraging. It's important to note that these projections are based on historical data, which may not fully predict future conditions. Investors should use this information as one of many tools in decision-making.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's allocation is heavily skewed towards stocks (99%), with a minimal cash holding (1%). This allocation supports the portfolio's growth orientation but increases exposure to market fluctuations. Diversifying across more asset classes, such as bonds or real estate, could provide additional income streams and reduce volatility. The current allocation suits an aggressive growth strategy, but incorporating other asset classes might align better with a balanced risk profile.

Sectors Info

  • Technology
    31%
  • Financials
    14%
  • Consumer Discretionary
    12%
  • Telecommunications
    11%
  • Industrials
    9%
  • Consumer Staples
    7%
  • Health Care
    6%
  • Energy
    3%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

Sector allocation shows a strong emphasis on technology, financial services, and consumer cyclicals, making up over half of the portfolio. This concentration in growth-oriented sectors can drive high returns but also increases sensitivity to economic cycles and interest rate changes. Diversifying into more defensive sectors, like healthcare or utilities, could provide stability during market downturns. The current sector composition is well-suited for bullish market conditions but might benefit from rebalancing to mitigate risks in volatile markets.

Regions Info

  • North America
    76%
  • Europe Developed
    10%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic allocation is heavily weighted towards North America (76%), with modest exposure to developed Europe and emerging markets. This US-centric approach has historically offered strong growth opportunities but may limit potential gains from global economic trends. Increasing exposure to emerging markets and other developed regions could enhance growth prospects and reduce geographic concentration risk. The portfolio's current geographic distribution reflects a common approach for US-based investors but could be optimized for global diversification.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    32%
  • Mid-cap
    15%
  • Small-cap
    1%

The portfolio's market capitalization breakdown—favoring mega (50%) and big (32%) cap stocks—aligns with its focus on established, high-value companies. This bias towards larger companies may offer stability and lower volatility but could limit growth potential compared to medium or small-cap investments. Considering a slight increase in medium or small-cap exposure could enhance growth prospects and diversification, balancing the stability of large caps with the growth potential of smaller companies.

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 composition suggests a well-considered balance between risk and return, potentially near the Efficient Frontier. However, the heavy emphasis on technology and US markets could be reviewed for risk diversification. Adjusting allocations or incorporating new assets could further optimize the portfolio. It's important to remember that the Efficient Frontier is based on historical data, and future market conditions may shift the optimal balance. Regular reviews and adjustments are essential to maintain an optimized portfolio.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.25%

The portfolio's average dividend yield of 1.25% contributes to its total return, with the highest yield from the Vanguard Total International Stock Index Fund ETF Shares. While not the primary focus, dividends offer a passive income stream and can provide a cushion during market downturns. For investors seeking higher income, reallocating towards assets with higher dividend yields or incorporating dividend-focused funds could be beneficial. The current yield is modest but appropriate for a growth-oriented strategy.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.09%

With a total expense ratio (TER) of 0.09%, the portfolio is cost-efficient, minimizing the impact of fees on returns. This low-cost approach is commendable, as it aligns with best practices for long-term investment success. Keeping costs low is crucial, especially in a diversified portfolio where expenses can easily accumulate. The portfolio's cost structure is a significant strength, supporting better net performance over time.

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