A cautiously diversified portfolio with a focus on income and global exposure

Report created on Sep 21, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio exhibits a well-thought-out composition, balancing between stocks, bonds, cash equivalents, and alternative investments like gold. The largest allocation is to a global stock ETF, ensuring broad market exposure, while the inclusion of specialized ETFs like those focusing on equity income, gold, and short-term bonds adds a layer of risk mitigation. This diversified approach aligns with the portfolio's cautious risk profile, aiming to provide steady income while preserving capital.

Growth Info

Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 12.29%, with a maximum drawdown of -18.71%. This performance indicates a relatively stable growth trajectory, especially considering the cautious risk classification. The days contributing to 90% of returns suggest that while the portfolio has experienced volatility, its overall upward trend has been maintained. Comparing this to benchmark indices could provide further insight into its relative performance.

Projection Info

A Monte Carlo simulation, which estimates future performance based on historical data, suggests a wide range of potential outcomes for this portfolio. While past performance is not indicative of future results, the simulation's optimistic median and high percentile outcomes highlight the portfolio's potential for substantial growth. However, the significant spread between the 5th and 67th percentiles underscores the inherent uncertainties in market-based investments.

Asset classes Info

  • Stocks
    70%
  • Bonds
    10%
  • Cash
    9%
  • Other
    9%
  • No data
    1%

The allocation across asset classes in this portfolio—70% in stocks, 10% in bonds, 9% each in cash and alternatives—reflects a balanced approach to risk and return. This mix supports the goal of achieving income while maintaining a buffer against market volatility. The relatively high allocation to stocks is tempered by the inclusion of conservative assets like short-term bonds and gold, aligning with the portfolio's cautious risk profile.

Sectors Info

  • Technology
    15%
  • Financials
    13%
  • Industrials
    9%
  • Consumer Discretionary
    9%
  • Health Care
    6%
  • Telecommunications
    5%
  • Consumer Staples
    4%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sectoral allocation shows a diverse range of investments, with a heavier emphasis on technology and financial services. This sectoral spread contributes to the portfolio's growth potential while exposing it to sector-specific risks. The presence of industrials, consumer cyclicals, and healthcare further diversifies the portfolio, potentially mitigating risks associated with overexposure to any single sector.

Regions Info

  • North America
    53%
  • Europe Developed
    8%
  • Japan
    4%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic exposure is predominantly in North America (53%), with smaller allocations across developed and emerging markets in Europe, Asia, and other regions. This geographic distribution enhances diversification, reducing the impact of regional economic downturns. However, the portfolio may benefit from increased exposure to emerging markets to capitalize on higher growth potentials outside of developed markets.

Market capitalization Info

  • Mega-cap
    21%
  • Large-cap
    19%
  • Mid-cap
    16%
  • Small-cap
    10%
  • No data
    9%
  • Micro-cap
    3%

The market capitalization breakdown—21% mega, 19% big, 16% medium, 10% small—indicates a bias towards larger, more established companies, which typically offer stability and resilience during market downturns. The presence of small and micro-cap investments introduces growth potential but also adds volatility and risk, which is consistent with the portfolio's cautious approach.

Redundant positions Info

  • Avantis® U.S. Small Cap Value ETF
    iShares S&P Mid-Cap 400 Value ETF
    High correlation

The high correlation observed between certain small-cap value ETFs suggests redundancy, which could limit the portfolio's diversification benefits. Assets moving in tandem may not provide the intended risk mitigation during market downturns. Identifying and reducing overlap among these assets can enhance the portfolio's overall risk management strategy.

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.

Considering the Efficient Frontier, the portfolio could benefit from optimizing its current asset allocation to achieve a better risk-return balance. Specifically, addressing the overlap in highly correlated assets could enhance diversification without necessarily increasing risk. This optimization process involves carefully rebalancing the portfolio to maintain its income focus while improving its growth potential and resilience against market volatility.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.50%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • iShares S&P Mid-Cap 400 Value ETF 2.20%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 5.60%
  • JPMorgan Equity Premium Income ETF 8.40%
  • Invesco BuyBack Achievers ETF 0.90%
  • iShares® 0-3 Month Treasury Bond ETF 4.40%
  • Vanguard Total World Stock Index Fund ETF Shares 1.40%
  • Weighted yield (per year) 2.78%

Dividend yields across the portfolio contribute significantly to its income-generating potential, with a total yield of 2.78%. High-yielding ETFs, particularly those focusing on equity income and CLOs, play a crucial role in this strategy. These yields offer a steady income stream, which is particularly valuable for investors prioritizing income alongside capital appreciation.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • SPDR® Gold Shares 0.40%
  • iShares S&P Mid-Cap 400 Value ETF 0.18%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 0.21%
  • JPMorgan Equity Premium Income ETF 0.35%
  • Invesco BuyBack Achievers ETF 0.62%
  • iShares® 0-3 Month Treasury Bond ETF 0.07%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.19%

The portfolio's total expense ratio (TER) of 0.19% is impressively low, maximizing the potential for net returns. Keeping costs low is crucial for long-term investment success, as even small differences in fees can significantly impact overall performance. This focus on cost efficiency is commendable and should be maintained.

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