A balanced and broadly diversified portfolio with a strategic mix across market caps and geographies

Report created on Aug 23, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio showcases a well-considered balance across various ETFs, focusing on both U.S. and international equities, with a notable absence of bonds or alternative asset classes. The allocation towards equal weight, large-cap, small-cap, low volatility, and emerging markets ETFs suggests a strategy aimed at capturing growth across the spectrum of market capitalizations and geographical regions, while attempting to mitigate risk through diversification.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 11.68% and a maximum drawdown of -36.62%, the portfolio demonstrates a strong historical performance relative to its risk profile. The days contributing to 90% of returns highlight the impact of significant market movements on portfolio performance. This historical data underscores the importance of staying invested during volatile periods to capture potential rebounds.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, suggest a wide range of outcomes for this portfolio. While the majority of simulations predict positive returns, the variance between the 5th and 67th percentiles underscores the uncertainty inherent in all investments. These projections are useful for setting realistic expectations and preparing for a variety of market conditions.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks, without allocation to bonds, cash, or other asset classes, positions it for higher potential growth at the expense of increased volatility. Diversifying across asset classes can provide a buffer against stock market fluctuations, potentially reducing portfolio volatility while still allowing for growth.

Sectors Info

  • Technology
    17%
  • Financials
    17%
  • Industrials
    14%
  • Consumer Discretionary
    10%
  • Health Care
    10%
  • Consumer Staples
    7%
  • Utilities
    6%
  • Real Estate
    5%
  • Telecommunications
    5%
  • Basic Materials
    4%
  • Energy
    3%

Sector allocation is well-diversified, covering a broad spectrum of the economy from technology and financial services to utilities and real estate. This diversification helps mitigate sector-specific risks, although the significant weight in technology and financial services may expose the portfolio to higher volatility in these sectors.

Regions Info

  • North America
    73%
  • Europe Developed
    13%
  • Japan
    5%
  • Asia Developed
    3%
  • Asia Emerging
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%

Geographic allocation emphasizes a strong focus on North America, complemented by exposure to developed and emerging markets around the world. This global diversification enhances the portfolio's growth potential by tapping into different economic cycles and market dynamics, though the dominance of North American assets may reflect a home bias.

Market capitalization Info

  • Mid-cap
    32%
  • Large-cap
    25%
  • Mega-cap
    23%
  • Small-cap
    14%
  • Micro-cap
    5%

The portfolio's spread across mega, big, medium, small, and micro-cap stocks is a strategic choice that balances the stability of large companies with the growth potential of smaller firms. This diversification across market capitalizations can help smooth out performance over time, as different segments of the market may react differently to economic changes.

Redundant positions Info

  • Schwab International Equity ETF
    Schwab International Small-Cap Equity ETF
    High correlation

The high correlation between certain international ETFs indicates overlapping exposures, which may limit the benefits of diversification. Identifying and addressing these redundancies can enhance the portfolio's efficiency by reducing unnecessary overlap without sacrificing the intended diversification benefits.

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 further enhance its risk-return profile. This process involves adjusting asset allocations to achieve the best possible balance between risk and return, focusing on eliminating highly correlated assets that do not contribute to diversification. Such optimization requires careful consideration of the individual's risk tolerance and investment goals.

Dividends Info

  • Invesco S&P 500® Equal Weight ETF 1.50%
  • Schwab U.S. Small-Cap ETF 1.40%
  • Schwab International Small-Cap Equity ETF 2.80%
  • Schwab Emerging Markets Equity ETF 2.50%
  • Schwab International Equity ETF 2.50%
  • Schwab U.S. Large-Cap ETF 1.10%
  • Invesco S&P 500® Low Volatility ETF 1.80%
  • Weighted yield (per year) 1.76%

The portfolio's dividend yield of 1.76% contributes to its total return, providing a steady income stream in addition to potential capital appreciation. This yield, while modest, indicates a balanced approach between growth-focused investments and income-generating assets.

Ongoing product costs Info

  • Invesco S&P 500® Equal Weight ETF 0.20%
  • Schwab U.S. Small-Cap ETF 0.04%
  • Schwab International Small-Cap Equity ETF 0.11%
  • Schwab Emerging Markets Equity ETF 0.11%
  • Schwab International Equity ETF 0.06%
  • Schwab U.S. Large-Cap ETF 0.03%
  • Invesco S&P 500® Low Volatility ETF 0.25%
  • Weighted costs total (per year) 0.11%

With a Total Expense Ratio (TER) of 0.11%, the portfolio benefits from relatively low costs, supporting better long-term performance by minimizing the drag on returns. Keeping costs low is crucial for maximizing investment growth, especially in a diversified portfolio where expenses can easily accumulate.

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