A broadly diversified portfolio with balanced risk and high dividend yield potential

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Balanced Investors

This portfolio suits an investor seeking balanced growth with moderate risk tolerance and a long-term horizon. It emphasizes global equity exposure while providing income through dividends. Suitable for individuals aiming to build wealth over time, it balances growth with income generation. The investor is likely comfortable with market fluctuations and seeks to capitalize on global economic trends.

Positions

  • Vanguard Total World Stock Index Fund ETF Shares
    VT - US9220427424
    80.00%
  • JPMorgan Nasdaq Equity Premium Income ETF
    JEPQ - US46654Q2030
    10.00%
  • Berkshire Hathaway Inc
    BRK-B - US0846707026
    5.00%
  • Philip Morris International Inc
    PM - US7181721090
    5.00%

This portfolio is predominantly composed of stocks, with 80% allocated to the Vanguard Total World Stock Index Fund ETF. It includes two individual stocks, Berkshire Hathaway Inc and Philip Morris International Inc, each making up 5%. The remaining 10% is in the JPMorgan Nasdaq Equity Premium Income ETF. This structure aligns with a balanced profile, focusing on global equity exposure. A comparison to benchmarks reveals a higher concentration in equities, which may increase volatility but also offers growth potential. Consider adjusting allocations if seeking more fixed-income stability.

Growth Info

The portfolio has demonstrated a strong historical performance with a Compound Annual Growth Rate (CAGR) of 10.41% and a maximum drawdown of -17%. This suggests resilience during market downturns. Compared to benchmarks, this performance is commendable, indicating effective asset selection. However, reliance on past performance should be cautious, as it doesn't guarantee future results. Maintaining a diversified approach can help sustain returns across varying market conditions.

Projection Info

Using Monte Carlo simulations, the portfolio's potential future outcomes are projected, considering historical data. With 1,000 simulations, the portfolio shows a median growth of 633.9%, suggesting robust potential. However, the 5th percentile indicates a more conservative growth of 134.7%. While simulations provide insights, they rely on historical trends and assumptions, which may not reflect future market realities. Regularly reviewing allocations in response to market changes can help manage risks.

Asset classes Info

  • Stocks
    97%
  • No data
    2%
  • Cash
    1%
  • Other
    0%

The portfolio is heavily weighted towards equities, with 97% in stocks. This allocation promotes growth but may increase volatility. A comparison to typical balanced portfolios shows a lower allocation to bonds, which could stabilize returns during downturns. Adding fixed-income assets could enhance diversification and reduce risk. Balancing equity exposure with other asset classes can help achieve a more stable risk-return profile.

Sectors Info

  • Technology
    24%
  • Financials
    19%
  • Consumer Discretionary
    10%
  • Consumer Staples
    10%
  • Industrials
    9%
  • Health Care
    9%
  • Telecommunications
    8%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation is diversified, with significant exposure to technology (24%), financial services (19%), and consumer cyclicals (10%). This aligns with common benchmarks, indicating a well-rounded approach. However, the tech-heavy tilt could lead to higher volatility during interest rate hikes. Monitoring sector trends and adjusting allocations can help mitigate sector-specific risks and align with market opportunities.

Regions Info

  • North America
    73%
  • Europe Developed
    12%
  • Asia Emerging
    5%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Europe Emerging
    0%

The portfolio's geographic exposure is primarily in North America (73%), with limited diversification in emerging markets. This concentration aligns with many U.S.-centric portfolios but may expose the portfolio to regional risks. Increasing exposure to international markets, particularly in emerging economies, could enhance diversification and potentially boost returns. A more balanced geographic allocation can help mitigate regional economic fluctuations.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    28%
  • Mid-cap
    16%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio is predominantly invested in mega-cap stocks (48%), followed by big-cap (28%) and medium-cap (16%). This allocation provides stability and lower volatility, as larger companies tend to be more resilient. However, it may limit growth potential compared to small-cap investments. Introducing more small-cap stocks could increase growth opportunities, albeit with higher risk. Balancing market cap exposure can optimize growth and stability.

Dividends Info

  • JPMorgan Nasdaq Equity Premium Income ETF 11.50%
  • Philip Morris International Inc 3.30%
  • Vanguard Total World Stock Index Fund ETF Shares 2.00%
  • Weighted yield (per year) 2.92%

The portfolio's dividend yield is 2.92%, supported by high-yielding assets like the JPMorgan Nasdaq Equity Premium Income ETF at 11.50%. Dividends contribute to total returns, providing a steady income stream. This feature suits investors seeking income alongside growth. However, focusing solely on dividends may overlook growth opportunities. Balancing dividend and growth-focused investments can optimize returns.

Ongoing product costs Info

  • JPMorgan Nasdaq Equity Premium Income ETF 0.35%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.09%

The portfolio's total expense ratio (TER) is 0.09%, which is impressively low. This cost efficiency supports better long-term performance by minimizing the drag on returns. Compared to industry averages, these costs are commendable, allowing more of the portfolio's returns to benefit the investor. Maintaining low costs should remain a priority, as it directly enhances net returns over time.

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.

The portfolio could be optimized using the Efficient Frontier, potentially achieving a higher expected return of 20.51% with a risk level of 16.24%. This optimization focuses on maximizing returns for a given risk level, not necessarily diversification. Adjusting allocations among current assets can improve the risk-return ratio. Regularly reassessing the portfolio's positioning can help maintain efficiency.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.