A balanced portfolio with a strong lean towards US equities and technology sector

Report created on Oct 24, 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 heavily weighted towards the Vanguard S&P 500 ETF, comprising 90% of the total, with the remaining 10% allocated to the Vanguard Total International Stock Index Fund ETF Shares. This composition suggests a strong bias towards US equities, with a modest inclusion of international stocks to provide some level of global diversification. The asset class distribution is almost entirely in stocks, with a negligible cash position, reflecting a growth-oriented strategy albeit with limited asset class diversification.

Growth Info

The portfolio has achieved a Compound Annual Growth Rate (CAGR) of 14.62%, which is commendable. However, it's important to note that this high return comes with a significant risk, as evidenced by the maximum drawdown of -33.93%. This suggests that while the portfolio has the potential for high returns, it also faces substantial volatility, which could be a concern for investors with a low tolerance for risk. The days contributing to 90% of returns being concentrated in just 33 days indicate that timing the market plays a crucial role in realizing gains, which is inherently unpredictable.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, show a wide range of outcomes for this portfolio. The 50th percentile outcome of a 362.8% return is optimistic, but it's crucial to remember that such simulations have limitations and cannot predict future market conditions with certainty. The high percentage of simulations with positive returns (993 out of 1,000) suggests resilience, but investors should remain cautious about over-reliance on these projections.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's allocation is almost entirely in stocks (99%), with a minimal cash position (1%). This indicates a growth-focused strategy but comes with higher volatility and risk. Diversification across different asset classes could provide a buffer against market downturns, suggesting that incorporating bonds or alternative investments might balance the risk-return profile more effectively.

Sectors Info

  • Technology
    34%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Health Care
    9%
  • Industrials
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

The sector allocation is heavily weighted towards technology (34%), followed by financial services (14%) and consumer cyclicals (11%). This tech-heavy focus can drive growth but also increases susceptibility to sector-specific downturns, such as those driven by regulatory changes or technological shifts. Broadening the sector exposure could mitigate some of this risk.

Regions Info

  • North America
    90%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%

The geographic allocation is predominantly North American (90%), with minimal exposure to developed Europe (4%) and emerging Asia (2%). This geographic concentration in the US market enhances the portfolio's potential for growth but also increases its vulnerability to US-centric economic and political events. Increasing international diversification could provide a hedge against this risk.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    34%
  • Mid-cap
    18%
  • Small-cap
    1%

The market capitalization breakdown shows a preference for mega (46%) and big (34%) cap stocks, with lesser exposure to medium (18%) and small (1%) caps. This skew towards larger companies may reduce volatility but could also limit potential high-growth opportunities found in smaller companies. Considering a more balanced market cap distribution could enhance returns while managing 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 portfolio shows a strong growth orientation but might benefit from risk vs. return optimization. Utilizing the Efficient Frontier could identify allocations that offer a better balance of risk and return, potentially enhancing the portfolio's performance by adjusting the weightings between the current assets.

Dividends Info

  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.26%

The portfolio's dividend yield stands at 1.26%, with the international ETF contributing a higher yield than its US counterpart. While not the primary focus, dividends contribute to the portfolio's total return and provide a modest income stream. For investors seeking higher income, reallocating towards assets with higher dividend yields could be beneficial.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.03%

The portfolio benefits from low costs, with a Total Expense Ratio (TER) of just 0.03%. This efficient cost structure is commendable as it maximizes net returns to the investor over time. Keeping costs low is a fundamental principle of successful long-term investing, and this portfolio aligns well with that principle.

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