Balanced portfolio with a tech tilt and a solid foundation in major ETFs

Report created on Aug 8, 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 showcases a strategic mix of ETFs, mutual funds, and individual stocks, with a significant emphasis on technology and large-cap equities. The Vanguard S&P 500 ETF, making up 30% of the portfolio, provides broad market exposure, while specialized allocations like the Vanguard Information Technology Index Fund ETF Shares and individual tech stocks underscore a deliberate tech-sector tilt. The inclusion of a government money market fund adds a conservative balance, aiming to mitigate overall volatility.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 17.03%, with a maximum drawdown of -25.30%. This performance, particularly the days contributing most to returns, indicates a portfolio that has benefited significantly from specific market conditions. While past performance is robust, it's crucial to remember that it doesn't guarantee future returns. Comparing this performance against a balanced benchmark would help assess its relative strength.

Projection Info

Utilizing Monte Carlo simulations, which project future performance based on historical data, we see a wide range of potential outcomes. The simulations suggest a median potential increase of 1,202.5%, with a significant majority of simulations (990 out of 1,000) showing positive returns. However, it's important to note the inherent limitations of relying solely on historical data for future predictions, as it cannot account for unforeseen market shifts.

Asset classes Info

  • Stocks
    82%
  • No data
    18%

The portfolio's asset allocation leans heavily towards stocks (82%), with a notable absence of bonds or alternative investments. This concentration in equities, particularly in tech, suggests a higher risk and return profile. Diversifying across more asset classes could help reduce volatility without necessarily compromising long-term returns.

Sectors Info

  • Technology
    34%
  • No data
    18%
  • Telecommunications
    12%
  • Financials
    10%
  • Consumer Discretionary
    7%
  • Industrials
    6%
  • Health Care
    5%
  • Consumer Staples
    3%
  • Energy
    2%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

Sector allocation shows a strong preference for technology, making up 34% of the portfolio. While this sector has historically provided high returns, it also comes with increased volatility and risk, especially during market downturns or sector-specific setbacks. Balancing sector exposures can help smooth out returns over time.

Regions Info

  • North America
    82%
  • No data
    18%

Geographic allocation is heavily focused on North America (82%), with no exposure to international markets. This concentration increases exposure to region-specific risks and misses potential opportunities in emerging and developed markets outside of North America. Expanding geographic diversification could enhance the portfolio's growth potential and resilience.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    20%
  • No data
    18%
  • Mid-cap
    11%
  • Small-cap
    9%
  • Micro-cap
    4%

The portfolio's market capitalization exposure shows a preference for mega and big-cap companies, which typically offer stability and steady growth. However, the inclusion of small and micro-cap investments, though minimal, introduces higher growth potential alongside increased risk. A more nuanced balance across market caps could improve risk-adjusted returns.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard Information Technology Index Fund ETF Shares
    Invesco NASDAQ 100 ETF
    High correlation

The presence of highly correlated assets, particularly within the ETFs focused on large-cap growth and technology, limits the portfolio's diversification benefits. Reducing overlap by reallocating from correlated assets to those with lower correlations can enhance portfolio efficiency and reduce systemic risk.

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's current setup suggests room for optimization towards a more efficient risk-return profile. By addressing the overlap in highly correlated assets and considering a broader diversification across asset classes, sectors, and geographies, the portfolio could achieve an expected return of 5.96% at a lower risk level. This adjustment would align with the principles of the Efficient Frontier, aiming for the optimal balance between risk and return.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Alphabet Inc Class C 0.40%
  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Fidelity® Government Money Market Fund 3.60%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Invesco S&P MidCap Quality ETF 0.70%
  • Invesco S&P MidCap Momentum ETF 0.70%
  • Weighted yield (per year) 1.29%

The portfolio's dividend yield stands at an average of 1.29%, contributed by both ETFs and individual stocks. While not the primary focus, dividends offer a stream of income and can provide a cushion during market downturns. Reviewing and potentially increasing exposure to higher-yielding assets could improve income without significantly altering the risk profile.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Invesco S&P MidCap Quality ETF 0.25%
  • Invesco S&P MidCap Momentum ETF 0.34%
  • Weighted costs total (per year) 0.07%

With a total expense ratio (TER) of 0.07%, the portfolio is cost-efficient, which is crucial for maximizing long-term returns. Keeping costs low is a key component of investment success, especially in a balanced portfolio where the goal is to achieve steady growth over time.

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