A growth tilted balanced portfolio with strong tech exposure and impressively low ongoing costs

Report created on Oct 19, 2024

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 built almost entirely from broad stock index ETFs, with roughly 90% in US stocks and 10% abroad, and a notably large tilt toward technology. For a “balanced” profile, this is actually closer to a growth‑oriented equity mix, since there’s effectively no bond component. That matters because bonds usually act as a shock absorber when stocks fall. Sticking with these core funds keeps things simple and aligned with common benchmarks, which is a real strength. To bring the mix closer to a classic balanced style, one path could be gradually introducing a small allocation to lower‑volatility assets rather than adding more specialized stock funds.

Growth Info

Historically, this mix has delivered a very strong compound annual growth rate (CAGR) of about 20.6%. CAGR is basically the “average speed” of growth per year, smoothing out the bumps over time. A max drawdown near ‑20% is actually mild for such an equity‑heavy, tech‑tilted mix, especially when compared with broad stock markets that have often dropped 30–50% in major crashes. Just 17 days making up 90% of returns shows how a handful of big up days drive long‑term performance. That highlights the benefit of staying invested through volatility rather than trying to time exits and entries around short‑term news.

Projection Info

The forward projection uses a Monte Carlo simulation, which runs many “what‑if” scenarios by scrambling historical returns to see a range of possible futures. Across 1,000 runs, all scenarios were positive and the median outcome was very strong, implying big potential growth if trends resemble the past. However, Monte Carlo relies on historical patterns, which can break down, especially for tech‑heavy equity portfolios. It doesn’t predict crashes or regime shifts; it just plays with past numbers. As a result, it’s more useful as a rough risk‑and‑range gauge than a promise. Treat the optimistic projections as potential upside, while also mentally preparing for stretches that could be much rougher than the simulations suggest.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The allocation is 99% stock and 1% cash, which is extremely equity‑centric even for a “balanced” label. Asset classes are broad buckets like stocks, bonds, and cash, and one reason people mix them is that they usually don’t move in lockstep. Stocks can grow fast but swing a lot, while bonds and cash tend to swing less. The upside here is strong growth potential and simplicity, and that aligns with many growth benchmarks. The tradeoff is larger potential swings in account value. Someone wanting smoother ride quality could think about slowly layering in a modest amount of defensive assets rather than more equity risk, especially as goals or timelines get closer.

Sectors Info

  • Technology
    42%
  • Financials
    13%
  • Industrials
    9%
  • Consumer Discretionary
    9%
  • Telecommunications
    6%
  • Health Care
    6%
  • Energy
    5%
  • Consumer Staples
    4%
  • Basic Materials
    3%
  • Utilities
    1%
  • Real Estate
    1%

Sector exposure is clearly tech‑led: about 42% in technology, then meaningful slices in financials, industrials, and consumer areas, plus smaller stakes in energy and healthcare. Compared with many broad benchmarks, that tech weight is elevated, which has helped returns in recent years as tech outperformed. The flip side is that tech can be hit harder during rising‑rate cycles or when growth expectations cool, so volatility could spike. The good news is that you still hold all major sectors, which keeps this from being a single‑theme portfolio. To smooth the ride, one approach could be to let future contributions favor sectors that are currently lighter rather than adding even more tech exposure over time.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Japan
    3%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, around 81% is in North America with the rest spread across developed and emerging regions. That’s more home‑biased toward the US than many global benchmarks, which often have closer to 55–65% in US stocks. This US tilt has been a tailwind over the last decade, since US markets have outpaced many international peers. The drawback is higher dependence on one market and one currency. International positions are still broad and diversified, which is a plus, but relatively small. Gradually boosting non‑US exposure with new money could provide an extra layer of diversification while keeping the core US tilt intact if that’s your preference.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    27%
  • Mid-cap
    20%
  • Small-cap
    10%
  • Micro-cap
    4%

Market cap exposure is nicely spread: heavy in mega and large companies, with solid slices of mid, small, and even micro caps. Market capitalization simply means the total value of a company; larger firms tend to be more stable, while smaller ones can be more volatile but offer higher potential growth. This structure looks very similar to total‑market benchmarks, which is a strong point for diversification and simplicity. It avoids an extreme bet on tiny speculative names while still capturing the full market. If volatility ever feels too high, one lever could be letting new contributions lean a bit more toward large‑cap‑heavy funds instead of increasing smaller‑cap exposure.

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.

On a risk‑return chart, often called the Efficient Frontier, portfolios are compared to see which mix gets the best tradeoff between volatility and expected return from a given set of building blocks. “Efficient” here doesn’t mean perfectly diversified; it just means you’re not leaving easy risk‑return improvements on the table with these specific funds. With such a high equity share and strong historic returns, this mix probably sits toward the higher‑risk, higher‑return side versus more classic balanced blends. Shifting a slice into lower‑volatility assets could move it closer to the efficient edge for a moderate‑risk target. Any fine‑tuning would focus more on adjusting the weights between the existing building blocks than on adding lots of new products.

Dividends Info

  • American Century ETF Trust 2.00%
  • Vanguard Information Technology Index Fund ETF Shares 0.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.31%

The overall dividend yield of about 1.3% is modest, which is typical for growth‑oriented equity portfolios with a lot of tech exposure. A dividend yield is simply the annual cash payout as a percentage of what you’ve invested. Tech and many US growth companies often reinvest profits instead of paying high dividends, aiming for price appreciation. Your international and value‑tilted parts are doing more of the income heavy lifting. This setup is well‑aligned with a focus on capital growth rather than current cash flow. If future goals shift toward income—say, to help cover living expenses—one option could be gradually raising the share of higher‑yielding, more income‑focused funds.

Ongoing product costs Info

  • American Century ETF Trust 0.26%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.11%

The total expense ratio (TER) of roughly 0.11% per year is impressively low and a major strength. TER is like a small annual “membership fee” for owning a fund, and keeping it low helps more of the portfolio’s returns stay in your pocket. Over long horizons, even a 0.3–0.5 percentage point difference in costs can compound into a big dollar gap. Here, using broad index ETFs keeps costs in line with best practices and very competitive with benchmark averages. There’s no obvious pressure to shave fees further; the bigger long‑term levers are asset mix and savings rate rather than squeezing a few extra basis points out of fund expenses.

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