A balanced and broadly diversified portfolio with a strong focus on growth and technology sectors

Report created on Jul 20, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is structured around a solid foundation of ETFs, focusing on major indices and sectors. With 30% allocated to both the Vanguard S&P 500 ETF and Vanguard Total International Stock Index Fund ETF Shares, it's clear there's a balanced approach to capturing both U.S. and international market returns. The inclusion of specialized ETFs like the Schwab U.S. Large-Cap Growth ETF and Invesco NASDAQ 100 ETF, each with significant allocations, underscores a growth-oriented strategy. The Schwab U.S. Dividend Equity ETF adds an income component, albeit smaller, rounding out the portfolio's diversification.

Growth Info

Historically, the portfolio has demonstrated robust growth with a Compound Annual Growth Rate (CAGR) of 13.78%. The maximum drawdown indicates a resilience to market volatility, which is impressive. It's worth noting that a small number of days contributed disproportionately to returns, highlighting the impact of short-term market movements on performance. These figures, while promising, should be viewed with the understanding that past performance is not indicative of future results.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median suggesting substantial growth potential. However, it's crucial to understand that these projections, while useful for planning, are based on historical data and cannot predict future market conditions with certainty. The high percentage of simulations with positive returns does offer some comfort regarding the portfolio's risk management strategy.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely invested in stocks, with a negligible cash holding. This allocation is indicative of a growth-focused strategy but comes with higher volatility. Diversifying across different asset classes, such as bonds or real estate, could provide a buffer against stock market fluctuations.

Sectors Info

  • Technology
    30%
  • Financials
    13%
  • Consumer Discretionary
    11%
  • Telecommunications
    9%
  • Industrials
    9%
  • Health Care
    9%
  • Consumer Staples
    7%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

With a heavy emphasis on technology and significant investments in financial services and consumer cyclicals, the portfolio is positioned to benefit from growth in these dynamic sectors. However, this concentration also exposes it to sector-specific risks. Diversifying into other sectors or increasing allocations to underrepresented ones like utilities or real estate might reduce volatility.

Regions Info

  • North America
    72%
  • Europe Developed
    12%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation is heavily skewed towards North America, with meaningful exposure to developed Europe and a smaller presence in emerging markets. This distribution reflects a conservative approach to international investing but may limit exposure to high-growth regions. Considering a slight increase in emerging markets could enhance growth prospects and diversification.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    33%
  • Mid-cap
    17%
  • Small-cap
    2%

The focus on mega and big-cap stocks aligns with the portfolio's balanced risk profile, offering stability and potential for growth. However, the minimal exposure to small and micro-cap stocks suggests an opportunity to enhance returns through increased diversification, albeit at a higher risk.

Redundant positions Info

  • Invesco NASDAQ 100 ETF
    Schwab U.S. Large-Cap Growth ETF
    High correlation

The high correlation between the Invesco NASDAQ 100 ETF and Schwab U.S. Large-Cap Growth ETF indicates redundancy, which may not contribute to diversification. Reevaluating the necessity of both positions could lead to a more efficient allocation of resources, potentially enhancing the portfolio's risk-adjusted returns.

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.

Aligning the portfolio closer to the Efficient Frontier through optimization could enhance its risk-return profile. Specifically, addressing the overlap in highly correlated assets could improve diversification without necessarily increasing risk. This step is crucial for achieving a more efficient allocation that maximizes returns for a given level of risk.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.71%

The portfolio's dividend yield adds an income component to its growth-focused strategy. While the overall yield is moderate, it contributes to total returns and provides a cash flow that can be reinvested. Balancing growth and income through dividend-yielding investments is a prudent strategy, especially in volatile markets.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.05%

The portfolio's overall cost is impressively low, which is crucial for maximizing long-term returns. Keeping costs down is a fundamental principle of successful investing, and this portfolio aligns well with that philosophy. Periodic reviews to ensure costs remain competitive are advisable.

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