A balanced portfolio with strong diversification and moderate risk exposure

Report created on Apr 9, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is well-diversified with a mix of funds and ETFs, predominantly focused on equity investments, comprising 87% stocks, 6% bonds, and 5% other assets. This composition aligns well with a balanced investment strategy, offering growth potential while maintaining a degree of stability. Compared to benchmarks, the portfolio's structure reflects a solid diversification approach, which can help mitigate risks associated with market volatility. It is important to periodically review asset allocations to ensure they continue to align with your investment goals and risk tolerance.

Growth Info

Historically, the portfolio has delivered a compound annual growth rate (CAGR) of 5.24%, which, while modest, reflects a stable growth trajectory. The maximum drawdown of -33.64% indicates potential vulnerability during market downturns. Compared to benchmarks, the performance suggests room for improvement in capturing upside potential. It is crucial to remember that past performance does not guarantee future results. Regular performance reviews can help identify areas for adjustment, ensuring the portfolio remains aligned with your financial objectives.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, indicate a median return of 104.7% over the investment horizon. This suggests a reasonable growth expectation, with 849 out of 1,000 simulations showing positive returns. However, the 5th percentile indicates a potential downside of -32.9%. While these projections provide a glimpse into possible future scenarios, they are not foolproof predictions. Regularly updating simulations with the latest data can help refine expectations and guide strategic adjustments.

Asset classes Info

  • Stocks
    87%
  • Bonds
    6%
  • Other
    5%
  • Cash
    2%

The portfolio's asset class allocation, with a dominant 87% in stocks, 6% in bonds, and 5% in other assets, supports a growth-oriented strategy. This allocation is well-balanced for a risk-tolerant investor, offering potential for capital appreciation. Compared to typical benchmarks, the portfolio maintains a diversified stance, which can reduce risk exposure. Periodic rebalancing is recommended to maintain desired asset class weights and adapt to evolving market conditions and personal financial goals.

Sectors Info

  • Technology
    17%
  • Financials
    15%
  • Health Care
    14%
  • Industrials
    9%
  • Energy
    8%
  • Basic Materials
    8%
  • Telecommunications
    8%
  • Consumer Discretionary
    5%
  • Consumer Staples
    4%
  • Utilities
    3%
  • Consumer Discretionary
    2%
  • Real Estate
    1%

Sector allocation is diverse, with notable exposure to technology (17%), financial services (15%), and healthcare (14%). This composition aligns with common benchmarks, providing a balanced exposure to various economic sectors. However, the technology sector's significant weight could introduce volatility, especially during interest rate hikes. Staying informed about sector trends and economic shifts can help anticipate potential impacts on the portfolio and guide timely adjustments to manage sector-specific risks.

Regions Info

  • North America
    54%
  • Europe Developed
    12%
  • Asien Schwellenländer
    11%
  • Asien
    7%
  • Japan
    3%
  • Afrika/Mittlerer Osten
    3%
  • Latin America
    2%
  • Australasia
    2%

Geographically, the portfolio is heavily weighted towards North America (54%), with additional exposure to Europe and Asia. This allocation aligns with common benchmarks, providing a balanced global perspective. However, the limited exposure to emerging markets could restrict growth opportunities. Exploring increased allocations in underrepresented regions may enhance diversification and capture potential growth in developing economies. Regularly assessing geopolitical and economic developments can inform geographic allocation decisions.

Market capitalization Info

  • Mega-cap
    36%
  • Large-cap
    29%
  • Mid-cap
    16%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown is weighted towards larger companies, with 36% in mega-cap and 29% in big-cap stocks. This focus on larger firms offers stability and potential for steady returns. However, the relatively low exposure to small-cap and micro-cap stocks (5%) may limit growth potential. Balancing market capitalization exposure can enhance diversification and capture opportunities across different company sizes. Periodic reviews can ensure the portfolio remains aligned with your risk tolerance and growth objectives.

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 be optimized using the Efficient Frontier, potentially achieving a higher expected return of 13.13% at the same risk level. This optimization involves reallocating current assets to improve the risk-return ratio. While efficiency focuses on maximizing returns per unit of risk, it does not account for other goals like diversification. Regularly assessing the portfolio's efficiency and making strategic adjustments can help achieve optimal performance while maintaining alignment with your financial objectives.

Dividends Info

  • FIDELITY CAPITAL & INCOME FUND FIDELITY CAPITAL & INCOME FUND 4.80%
  • FIDELITY DIVIDEND GROWTH FUND FIDELITY DIVIDEND GROWTH FUND 1.00%
  • FIDELITY ZERO INTERNATIONAL INDEX FUND 3.20%
  • FlexShares Morningstar Global Upstream Natural Resources Index Fund 3.20%
  • iShares Core MSCI Emerging Markets ETF 3.50%
  • Health Care Select Sector SPDR® Fund 1.30%
  • Weighted yield (per year) 2.40%

The portfolio's dividend yield is 2.40%, contributing to overall returns and offering a steady income stream. High-yield investments, like the Fidelity Capital & Income Fund, provide additional income potential. For income-focused investors, dividends play a crucial role in total return. Regularly reviewing dividend policies and yields can help maintain a balance between income generation and capital appreciation, ensuring the portfolio aligns with your financial goals.

Ongoing product costs Info

  • FIDELITY CAPITAL & INCOME FUND FIDELITY CAPITAL & INCOME FUND 0.97%
  • SPDR Gold MiniShares 0.10%
  • FlexShares Morningstar Global Upstream Natural Resources Index Fund 0.46%
  • iShares Core MSCI Emerging Markets ETF 0.09%
  • Health Care Select Sector SPDR® Fund 0.09%
  • Weighted costs total (per year) 0.17%

The portfolio's total expense ratio (TER) is 0.17%, reflecting cost-efficient management. Low costs support better long-term performance by preserving returns. The Fidelity Capital & Income Fund has a higher expense ratio of 0.97%, which may impact net returns. Monitoring expenses and considering lower-cost alternatives can enhance cost-efficiency. Regularly reviewing fees ensures the portfolio remains cost-effective, maximizing returns over time.

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.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey