A growth-focused portfolio with a moderate risk profile and a strong emphasis on ethical investments

Report created on Dec 30, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is composed of two ETFs and one mutual fund, with a significant focus on equity investments. The Global X S&P 500® Catholic Values ETF holds a 50% weight, followed by the Eventide Global Dividend Opportunities Fund at 30%, and the Inspire International ESG ETF at 20%. This composition heavily leans towards stocks, with minimal allocation to bonds and cash. Compared to common benchmarks, this portfolio exhibits a strong equity bias, which is typical for growth-oriented strategies. To enhance diversification, consider incorporating a broader range of asset classes like bonds or real estate.

Growth Info

The historical performance of the portfolio is impressive, with a Compound Annual Growth Rate (CAGR) of 14.48%. However, it has experienced a maximum drawdown of -34.04%, indicating potential volatility. The portfolio's performance surpasses many benchmarks, suggesting a robust growth strategy. Yet, the high drawdown highlights the importance of risk management. To mitigate potential losses, consider diversifying further or rebalancing periodically to maintain the desired risk level.

Projection Info

The Monte Carlo simulation, which uses historical data to predict future outcomes, shows a wide range of potential returns. With 1,000 simulations, the median outcome is a 422.38% increase, and the worst-case scenario is a 42.84% gain. While these projections are promising, remember that they are based on past data and cannot guarantee future results. Regularly reviewing and adjusting the portfolio can help align with changing market conditions and personal goals.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is predominantly invested in stocks, accounting for over 99% of the allocation. This heavy equity focus aligns with a growth strategy, aiming for higher returns but also increasing risk. Compared to a balanced benchmark, which typically includes bonds and other assets, this portfolio may benefit from greater diversification. Introducing bonds or alternative investments could reduce volatility and provide more stable returns, especially during market downturns.

Sectors Info

  • Technology
    23%
  • Industrials
    14%
  • Financials
    14%
  • Health Care
    8%
  • Consumer Discretionary
    7%
  • Telecommunications
    6%
  • Energy
    6%
  • Utilities
    5%
  • Basic Materials
    5%
  • Real Estate
    5%
  • Consumer Staples
    4%
  • Consumer Discretionary
    3%

Sector allocation is concentrated in technology, industrials, and financial services, which together make up over 50% of the portfolio. This concentration could lead to increased volatility, particularly if these sectors face downturns. Compared to common benchmarks, this allocation shows a tech-heavy bias, which may be advantageous in growth periods but risky during interest rate hikes or economic slowdowns. Consider balancing sector weights to align with broader market trends and reduce sector-specific risks.

Regions Info

  • North America
    80%
  • Europe Developed
    11%
  • Asia Developed
    2%
  • Japan
    2%
  • Australasia
    2%
  • Asia Emerging
    1%
  • Latin America
    1%
  • Europe Emerging
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is heavily weighted towards North America, with over 80% exposure. While this aligns with many U.S.-centric benchmarks, it limits diversification benefits that come from international exposure. Including more assets from underrepresented regions like emerging markets or Europe could enhance diversification and tap into growth opportunities abroad. This adjustment could also mitigate risks associated with regional economic fluctuations.

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 could potentially be optimized using the Efficient Frontier, which identifies the best risk-return trade-off. By adjusting the allocation of existing assets, you may achieve a more efficient portfolio that maximizes returns for a given level of risk. This optimization focuses on the current holdings, suggesting that reallocating within them could enhance performance. Regular reviews and adjustments can ensure the portfolio remains aligned with your risk tolerance and investment goals.

Dividends Info

  • Global X S&P 500® Catholic Values ETF 0.40%
  • EVENTIDE GLOBAL DIVIDEND OPPORTUNITIES FUND EVENTIDE GLOBAL DIVIDEND OPPORTUNITIES FUND CLASS N SHARES 0.30%
  • Inspire International ESG ETF 2.30%
  • Weighted yield (per year) 0.75%

The portfolio's total dividend yield stands at 0.75%, with the Inspire International ESG ETF contributing the highest yield at 2.3%. While dividends provide a steady income stream, this yield is relatively low for income-focused portfolios. For growth-oriented investors, reinvesting dividends can enhance compounding returns. If income generation is a priority, consider adding higher-yielding assets to boost cash flow without compromising growth potential.

Ongoing product costs Info

  • Global X S&P 500® Catholic Values ETF 0.29%
  • EVENTIDE GLOBAL DIVIDEND OPPORTUNITIES FUND EVENTIDE GLOBAL DIVIDEND OPPORTUNITIES FUND CLASS N SHARES 1.15%
  • Inspire International ESG ETF 0.73%
  • Weighted costs total (per year) 0.64%

The portfolio's total expense ratio (TER) is 0.64%, with the Eventide fund having the highest cost at 1.15%. While this TER is reasonable for actively managed strategies, costs can eat into returns over time. To improve long-term performance, consider evaluating whether lower-cost alternatives could replace higher-fee assets. This could involve switching to more cost-effective ETFs or funds while maintaining the desired investment exposure.

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