Balanced portfolio with a focus on tech and real estate yielding solid historical performance

Report created on Aug 3, 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 composed of a mix of ETFs and a single common stock, with a significant emphasis on technology through the Invesco QQQ Trust and real estate via Realty Income Corporation. The allocation includes broad exposure to U.S. large caps, international stocks, emerging markets, and small-cap sectors. This structure aims to balance growth potential with risk mitigation through diversification across asset classes and geographic regions. The portfolio's broad diversification is designed to capture global market performance while being anchored by stable, income-generating assets.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 14.16%, with a maximum drawdown of -16.64%. This performance suggests that the portfolio has managed to deliver strong returns while experiencing relatively moderate declines during market downturns. The days contributing most significantly to returns highlight the impact of short-term market movements on overall performance. Comparing this to benchmark indices would help contextualize these results, indicating if the portfolio's strategy outperforms general market trends.

Projection Info

A Monte Carlo simulation, running 1,000 scenarios, projects a wide range of outcomes with a median increase of 454.8%. This analysis, while based on historical data, provides insight into the potential future performance variability. It's crucial to remember that such simulations are speculative, as they cannot account for unforeseen market changes. However, the high number of simulations ending in positive returns suggests a robustness in the portfolio's structure against different market conditions.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

With 99% of the portfolio in stocks, the emphasis is on capital growth over income or stability provided by bonds or other asset classes. This stock-heavy approach aligns with a balanced profile aiming for growth while accepting moderate risk. The minimal cash holding allows for liquidity without significantly detracting from the portfolio's growth potential. For investors with a lower risk tolerance or those nearing retirement, increasing diversification beyond stocks might be advisable.

Sectors Info

  • Technology
    25%
  • Real Estate
    17%
  • Financials
    12%
  • Consumer Discretionary
    10%
  • Industrials
    9%
  • Telecommunications
    8%
  • Health Care
    7%
  • Consumer Staples
    5%
  • Basic Materials
    3%
  • Energy
    3%
  • Utilities
    2%

The sectoral allocation showcases a strong tilt towards technology and real estate, followed by financial services and consumer cyclicals. This concentration in tech and real estate sectors could lead to higher volatility, given their sensitivity to market shifts and interest rate changes. However, it also presents a growth opportunity, as these sectors have historically offered substantial returns. Balancing these with more defensive sectors like healthcare or utilities could provide a smoother return profile over time.

Regions Info

  • North America
    71%
  • Asia Emerging
    9%
  • Europe Developed
    8%
  • Asia Developed
    4%
  • Japan
    3%
  • Africa/Middle East
    2%
  • Latin America
    1%
  • Australasia
    1%

Geographic allocation heavily favors North America, with significant positions in emerging Asia and developed Europe. This distribution reflects a strategy focused on capturing the growth potential of American markets and the diversification benefits of international exposure. However, the relatively small allocation to emerging markets and other developed regions might limit the portfolio's exposure to global growth opportunities. A slight increase in these areas could enhance diversification and potential returns.

Market capitalization Info

  • Large-cap
    39%
  • Mega-cap
    36%
  • Mid-cap
    14%
  • Small-cap
    7%
  • Micro-cap
    1%

The market capitalization breakdown reveals a concentration in big and mega-cap stocks, which tend to offer stability and resilience during market fluctuations. Medium, small, and micro caps, while more volatile, provide growth potential and diversification benefits. The current allocation suggests a cautious approach, favoring established companies over the higher risk-reward ratio of smaller firms. Adjusting this balance could tailor the portfolio's risk profile and growth prospects more closely to the investor's objectives.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Invesco QQQ Trust
    High correlation

The high correlation between the Vanguard S&P 500 ETF and the Invesco QQQ Trust indicates overlapping exposures, particularly to large-cap tech stocks, which may reduce the portfolio's diversification benefits. This redundancy suggests that the portfolio might not be as diversified as intended, potentially increasing risk during tech sector downturns. A review of these holdings to reduce overlap could enhance the portfolio's overall risk management.

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.

Optimizing the portfolio along the Efficient Frontier could enhance its risk-return profile by adjusting asset allocations to achieve the highest possible return for a given level of risk. This process might involve reducing the overlap between highly correlated assets, such as the Vanguard S&P 500 ETF and Invesco QQQ Trust, to improve diversification. While the current portfolio is well-constructed, optimization could further align it with the investor's specific risk tolerance and return expectations.

Dividends Info

  • Realty Income Corporation 5.20%
  • Invesco QQQ Trust 0.50%
  • SHP ETF Trust - NEOS S&P 500 High Income ETF 12.20%
  • Vanguard Small-Cap Index Fund ETF Shares 1.40%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.80%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 3.28%

The portfolio's dividend yield, driven primarily by the Realty Income Corporation and the SHP ETF Trust - NEOS S&P 500 High Income ETF, contributes to its total return. While the focus on growth stocks typically results in a lower overall yield, the inclusion of high-dividend assets provides a steady income stream. This balance supports the portfolio's growth objectives while offering some cushion against market volatility. For investors seeking higher income, further increasing the allocation to high-yield assets could be beneficial.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • SHP ETF Trust - NEOS S&P 500 High Income ETF 0.68%
  • Vanguard Small-Cap Index Fund ETF Shares 0.05%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.14%

With a Total Expense Ratio (TER) averaging 0.14%, the portfolio is cost-efficient, maximizing the potential for net returns. The low costs associated with the Vanguard ETFs significantly contribute to this efficiency, highlighting the benefits of selecting low-fee investment vehicles. Keeping costs low is crucial for long-term growth, as even small differences in fees can compound into significant impacts on total returns over time.

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