A balanced and highly diversified portfolio with a strong focus on North America

Report created on Mar 18, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is composed of 80% stocks, 10% bonds, and 10% alternative assets, including precious metals. The stock allocation is notably higher than typical balanced portfolios, which often include a greater proportion of bonds. This composition suggests a tilt towards growth, with moderate exposure to fixed income for stability. The inclusion of alternative assets like precious metals can provide a hedge against inflation and market volatility. It's important to periodically review the balance between asset classes, ensuring alignment with your risk tolerance and investment goals.

Growth Info

Historically, this portfolio has achieved a compound annual growth rate (CAGR) of 10.64%, indicating robust performance. However, it experienced a maximum drawdown of -28.42%, highlighting potential volatility. When compared to a benchmark like the S&P 500, the portfolio's performance appears strong, though the drawdown suggests it may be more volatile. Past performance is not a guarantee of future results, so it's crucial to consider how these historical trends align with your risk tolerance and investment objectives.

Projection Info

The Monte Carlo simulation, which uses historical data to project potential future outcomes, shows a median return of 226% over the investment horizon. With 972 out of 1,000 simulations yielding positive returns, the results are promising. However, it's important to note that simulations are based on past data, which may not fully predict future market conditions. Regularly reviewing and adjusting the portfolio can help manage risks and align with changing market dynamics.

Asset classes Info

  • Stocks
    80%
  • Bonds
    10%
  • Other
    5%
  • Cash
    4%

The portfolio's asset class allocation includes a significant 80% in stocks, 10% in bonds, and 10% in alternative investments. This distribution indicates a focus on growth with some diversification through bonds and precious metals. Compared to typical benchmarks, the stock allocation is higher, which can lead to greater volatility but also potential for higher returns. Regularly reassessing the balance between asset classes ensures alignment with your risk tolerance and investment objectives.

Sectors Info

  • Financials
    31%
  • Technology
    13%
  • Consumer Discretionary
    6%
  • Industrials
    6%
  • Health Care
    5%
  • Telecommunications
    5%
  • Consumer Staples
    4%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    1%

The portfolio is heavily weighted towards financial services at 31%, followed by technology at 13%. This sector allocation suggests a potential for higher volatility, especially during economic downturns or interest rate changes. While the financial sector can benefit from rising interest rates, tech stocks may be more vulnerable. Balancing sector exposure can help manage risk and improve long-term returns, so consider diversifying further into sectors like healthcare or consumer staples.

Regions Info

  • North America
    50%
  • Europe Developed
    15%
  • Asia Emerging
    8%
  • Asia Developed
    3%
  • Latin America
    2%
  • Africa/Middle East
    1%

With 50% exposure to North America and 15% to Europe, the portfolio has a strong regional focus on developed markets. This allocation aligns with common benchmarks but may limit exposure to emerging markets, which can offer higher growth potential. Increasing geographic diversification, particularly in Asia and Latin America, could enhance returns and reduce reliance on any single region's economic performance. Regularly reviewing geographic exposure helps maintain a balanced risk profile.

Market capitalization Info

  • Mega-cap
    51%
  • Large-cap
    20%
  • No data
    10%
  • Mid-cap
    8%

The portfolio's market capitalization is primarily concentrated in mega-cap stocks at 51%, with big caps at 20%. This focus on large companies can provide stability and lower volatility, but it may limit exposure to the higher growth potential of small and mid-cap stocks. Diversifying across different market capitalizations can enhance growth opportunities and improve risk-adjusted returns. Consider adding exposure to medium and small-cap stocks to capture potential upside.

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 allocation may be optimized using the Efficient Frontier, which identifies the best possible risk-return ratio. By adjusting the mix of existing assets, the portfolio can potentially achieve higher returns for the same level of risk. This process does not necessarily mean adding new assets but rather reallocating among current holdings. Regular optimization can help maintain an efficient and aligned portfolio with your risk tolerance and goals.

Dividends Info

  • Vanguard Total International Bond Index Fund ETF Shares 4.30%
  • Xtrackers MSCI Europe Hedged Equity ETF 0.10%
  • Invesco DB Precious Metals Fund 3.70%
  • Schwab Fundamental Emerging Markets Large Company Index ETF 4.40%
  • Vanguard S&P 500 ETF 1.30%
  • Weighted yield (per year) 1.86%

The portfolio's total dividend yield stands at 1.86%, with notable contributions from the Vanguard Total International Bond Index Fund and Schwab Fundamental Emerging Markets ETF. Dividends can provide a steady income stream and contribute to total returns, especially in low-growth environments. For investors seeking income, focusing on higher-yielding assets or dividend growth strategies may enhance returns. Regularly reviewing dividend policies ensures alignment with income objectives.

Ongoing product costs Info

  • Vanguard Total International Bond Index Fund ETF Shares 0.07%
  • Xtrackers MSCI Europe Hedged Equity ETF 0.46%
  • Invesco DB Precious Metals Fund 0.75%
  • Schwab Fundamental Emerging Markets Large Company Index ETF 0.39%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.22%

With a total expense ratio (TER) of 0.22%, the portfolio's costs are impressively low, supporting better long-term performance. Low costs are crucial as they directly impact net returns, allowing more of the portfolio's growth to benefit the investor. Compared to industry averages, this TER is competitive, suggesting efficient cost management. Continuously monitoring and minimizing expenses can further enhance portfolio 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