Balanced portfolio with a strong growth orientation and tax-efficient income strategy

Report created on Oct 7, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is primarily composed of two investment vehicles: a growth-oriented ETF, accounting for approximately 69% of the allocation, and a tax-exempt bond fund making up the remaining 31%. Such a structure suggests a strategic balance between seeking capital appreciation through equities and obtaining income through municipal bonds, tailored for a tax-conscious investor. The heavy emphasis on the growth ETF, particularly in sectors like technology, indicates a tilt towards higher growth potential, albeit with a higher risk profile.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 13.60%, with a maximum drawdown of -32.61%. These figures underscore the portfolio's ability to generate substantial returns, though not without significant volatility. The fact that 90% of returns were concentrated in just 37 days highlights the unpredictable nature of returns, emphasizing the importance of staying invested through market cycles to capture gains.

Projection Info

Monte Carlo simulations, with 1,000 iterations, project a wide range of potential outcomes, from a 5th percentile scenario of 50.7% growth to a 67th percentile scenario of 413.6% growth, highlighting the uncertainty inherent in investing. With 994 out of 1,000 simulations yielding positive returns, the forward-looking analysis suggests a favorable outlook, though it's crucial to remember that these projections are based on historical data and cannot guarantee future performance.

Asset classes Info

  • Stocks
    69%
  • Bonds
    31%

The portfolio's asset allocation—69% in stocks and 31% in bonds—provides a balanced mix that leans towards growth while using bonds to mitigate volatility. This allocation is in line with a balanced investment strategy that seeks to capitalize on the growth potential of equities with the stability of bonds. However, the absence of alternative investments and cash positions may limit opportunities for further diversification and risk management.

Sectors Info

  • Technology
    36%
  • Consumer Discretionary
    10%
  • Telecommunications
    9%
  • Financials
    4%
  • Health Care
    4%
  • Industrials
    3%
  • Consumer Staples
    1%
  • Real Estate
    1%

With a significant concentration in technology (36%), followed by consumer cyclicals and communication services, the portfolio is positioned to benefit from growth in these dynamic sectors. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or economic downturns that disproportionately affect these industries. Diversifying across a broader range of sectors could help mitigate these risks.

Regions Info

  • North America
    69%
  • No data
    31%

The geographical allocation is heavily weighted towards North American assets (69%), with the remaining portion not specified. This concentration in a single region, while potentially capitalizing on the growth and stability of North American markets, may limit exposure to global growth opportunities and diversification benefits offered by international markets.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    16%
  • Mid-cap
    7%

The portfolio's focus on mega (46%) and big-cap (16%) companies aligns with its growth orientation, as these firms often offer stable returns. However, the minimal exposure to medium and no exposure to small-cap stocks could mean missing out on the higher growth potential these companies can offer, albeit with increased 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 current allocation demonstrates a thoughtful approach to balancing growth potential with income generation and tax efficiency. However, exploring the Efficient Frontier could reveal opportunities to adjust asset allocations for an even better risk-return trade-off. This might involve diversifying across more sectors, asset classes, or geographies to optimize the portfolio's performance further.

Dividends Info

  • VANGUARD NEW YORK LONG-TERM TAX-EXEMPT FUND ADMIRAL SHARES 2.40%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Weighted yield (per year) 1.02%

The dividend yield of the portfolio stands at 1.02%, with the bond fund contributing a tax-exempt yield of 2.40% and the ETF a lower yield of 0.40%. This structure supports an income-generating strategy that is also tax-efficient, appealing to investors in higher tax brackets. However, the relatively low yield from the equity component suggests a trade-off between pursuing growth and generating income.

Ongoing product costs Info

  • VANGUARD NEW YORK LONG-TERM TAX-EXEMPT FUND ADMIRAL SHARES 0.09%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.06%

With a total expense ratio (TER) of 0.06%, the portfolio is efficiently managed cost-wise, which is crucial for maximizing long-term returns. Low costs are particularly beneficial in a balanced portfolio where the objective is to achieve a moderate growth rate without eroding returns through high fees.

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