Balanced growth portfolio with a strategic mix of global and emerging market exposure

Report created on Aug 22, 2025

Risk profile Info

4/7
Balanced
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Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is structured with a balanced approach, allocating 40% to a total stock market index, 20% each to emerging markets, international equities, and large-cap growth funds. This composition reflects a strategic blend of broad market exposure and targeted growth areas. The focus on stock-based funds, with a minimal cash holding, indicates a growth-oriented strategy, while the diversified sector and geographic exposure aim to mitigate risk.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 14.16%, with a maximum drawdown of -33.87%. These figures suggest a strong performance relative to the inherent market risks. The days contributing most to returns highlight the portfolio's ability to capitalize on market upswings effectively. Such historical performance, while not guaranteeing future results, provides a solid foundation for assessing the portfolio's potential resilience and growth prospects.

Projection Info

Monte Carlo simulations, which use historical data to project a range of possible future outcomes, show a median increase of 436.9% in portfolio value. This projection, based on 1,000 simulations, suggests a high likelihood of positive future returns, with 992 simulations ending positively. However, it's crucial to remember that these projections are hypothetical and cannot predict specific future market movements.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset class distribution is heavily weighted towards stocks (99%), with a nominal allocation to cash (1%). This allocation underscores a clear preference for equity investments, aiming for growth over fixed-income securities or other asset classes. While this aligns with the portfolio's growth objectives, investors should consider their comfort with the associated level of risk versus potential returns.

Sectors Info

  • Technology
    28%
  • Financials
    17%
  • Consumer Discretionary
    11%
  • Industrials
    9%
  • Telecommunications
    9%
  • Health Care
    8%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    4%
  • Utilities
    2%
  • Real Estate
    2%

With technology, financial services, and consumer cyclical sectors leading the portfolio's sectoral allocation, there's a pronounced tilt towards industries known for growth but also volatility. This sectoral emphasis supports the portfolio's growth strategy but may increase susceptibility to market fluctuations. Balancing sector exposure can help manage risk without significantly compromising growth potential.

Regions Info

  • North America
    60%
  • Europe Developed
    13%
  • Asia Emerging
    11%
  • Asia Developed
    5%
  • Japan
    4%
  • Latin America
    3%
  • Africa/Middle East
    2%
  • Australasia
    1%

Geographic diversification is a strength of this portfolio, with significant allocations to North America, Europe, and emerging markets in Asia and Latin America. This wide geographic spread can help cushion against regional downturns and capitalize on global growth opportunities. However, the emphasis on North America suggests a potential home bias that could be rebalanced for more global exposure.

Market capitalization Info

  • Mega-cap
    51%
  • Large-cap
    31%
  • Mid-cap
    12%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown, with a majority in mega and big-cap stocks, indicates a preference for stability and established companies. While this can offer resilience during market volatility, incorporating a broader mix of mid and small-cap stocks could enhance growth potential and diversification.

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 risk vs. return profile, as assessed by the Efficient Frontier, suggests it is well-optimized within its current asset allocation. This means it achieves a favorable balance between risk and potential returns, given the chosen investments. However, continuous monitoring and occasional rebalancing are recommended to maintain this optimization over time.

Dividends Info

  • SCHWAB FUNDAMENTAL EMERGING MARKETS LARGE COMPANY INDEX FUND INSTITUTIONAL SHARES 4.00%
  • SCHWAB INTERNATIONAL INDEX FUND SELECT SHARES 2.70%
  • SCHWAB LARGE-CAP GROWTH FUND SELECT SHARES 0.10%
  • SCHWAB TOTAL STOCK MARKET INDEX FUND SELECT SHARES 1.10%
  • Weighted yield (per year) 1.80%

The portfolio's average dividend yield of 1.80% contributes to its total return, combining growth and income. While the yield varies significantly across the funds, the overall strategy appears to balance income generation with capital appreciation. Investors seeking higher income might consider adjusting the allocation towards higher-yielding assets.

Ongoing product costs Info

  • SCHWAB FUNDAMENTAL EMERGING MARKETS LARGE COMPANY INDEX FUND INSTITUTIONAL SHARES 0.39%
  • SCHWAB INTERNATIONAL INDEX FUND SELECT SHARES 0.06%
  • SCHWAB LARGE-CAP GROWTH FUND SELECT SHARES 0.99%
  • SCHWAB TOTAL STOCK MARKET INDEX FUND SELECT SHARES 0.03%
  • Weighted costs total (per year) 0.30%

With a total expense ratio (TER) of 0.30%, the portfolio is cost-efficient, enhancing net returns for investors. The low costs are particularly impressive given the diversified exposure to both developed and emerging markets. Keeping costs low is crucial for long-term investment success, and this portfolio manages that well.

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