A balanced growth-focused portfolio with a strong lean towards the S&P 500 and moderate gold and international exposure

Report created on Aug 20, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards the Vanguard S&P 500 ETF, constituting 70% of the allocation, which mirrors the performance of the S&P 500 index, providing broad exposure to large-cap U.S. equities. The remaining 30% is split evenly between SPDR® Gold Shares and Vanguard FTSE Developed Markets Index Fund ETF Shares, aiming to introduce a level of diversification through commodities and international equities. This composition suggests a balanced approach, leaning heavily towards U.S. equities for growth, with gold and international stocks providing a hedge against volatility and currency risks.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 14.08%, with a maximum drawdown of -30.54%. This performance indicates a strong growth trajectory, albeit with significant volatility, as evidenced by the drawdown. The days contributing to 90% of returns being concentrated in just 38.0 days highlight the portfolio's susceptibility to short-term market movements. Comparing this to benchmark indices can provide further context on risk-adjusted returns.

Projection Info

Monte Carlo simulations, using 1,000 iterations, project a wide range of outcomes with a 5th percentile at a 69.8% increase and a 67th percentile at a 529.1% increase, suggesting significant upside potential. However, the broad range between percentiles underscores the inherent uncertainty in forward-looking projections. These simulations are based on historical data, which is not a guarantee of future performance but offers a probabilistic assessment of potential outcomes.

Asset classes Info

  • Stocks
    85%
  • Other
    15%

With 85% of the portfolio allocated to stocks and 15% to other asset classes, primarily gold, the asset class distribution supports a growth-oriented strategy with a hedge against market downturns through gold. This allocation aligns with a balanced investor profile but leans towards higher risk and return potential given the substantial equity exposure. Diversification across asset classes could be further optimized to manage volatility.

Sectors Info

  • Technology
    25%
  • Financials
    13%
  • Consumer Discretionary
    9%
  • Industrials
    8%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

The sectoral allocation shows a heavy emphasis on technology, financial services, and consumer cyclicals, which are sectors known for their growth potential but also for their volatility. This concentration increases the portfolio's exposure to sector-specific risks, such as regulatory changes or economic cycles affecting these industries. Broadening sectoral exposure could mitigate these risks and stabilize returns over time.

Regions Info

  • North America
    71%
  • Europe Developed
    8%
  • Japan
    3%
  • Asia Developed
    1%
  • Australasia
    1%

Geographically, the portfolio is predominantly invested in North America (71%), with modest exposure to developed markets in Europe and Japan. This geographic distribution supports a focus on developed, stable markets but underrepresents emerging markets, which could offer higher growth potential albeit with increased risk. Considering a slight increase in emerging market exposure could enhance growth prospects and diversification.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    29%
  • No data
    15%
  • Mid-cap
    15%
  • Small-cap
    1%

The market capitalization breakdown shows a strong bias towards mega and big-cap companies, which tend to be more stable and less volatile than smaller companies. However, this focus may limit the portfolio's growth potential as smaller companies often offer higher growth rates. Introducing a measured allocation to medium and small-cap stocks could improve growth prospects while maintaining a balanced risk profile.

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 current allocation suggests room for optimization towards the Efficient Frontier, where the portfolio could achieve the best possible risk-return ratio based on its existing assets. Adjusting allocations to reduce overexposure to the S&P 500 and introduce more diversification across asset classes, sectors, and geographies could enhance the portfolio's efficiency.

Dividends Info

  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.60%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.23%

The dividend yield of the portfolio, averaging 1.23%, contributes to the total return, providing a steady income stream in addition to potential capital appreciation. While the yield is modest, it complements the growth-focused strategy by offering a balance between income and growth. Reviewing dividend yields periodically can ensure they align with income needs and growth targets.

Ongoing product costs Info

  • SPDR® Gold Shares 0.40%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.09%

With a total expense ratio (TER) of 0.09%, the portfolio benefits from low management costs, enhancing net returns over the long term. This cost efficiency is commendable, especially given the diversified exposure across asset classes and geographies. Maintaining low costs is crucial for optimizing long-term investment outcomes.

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