Balanced and broadly diversified portfolio with a strong focus on growth and global exposure

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

The portfolio is structured with a significant tilt towards growth, evidenced by the 40% allocation to a U.S. Large-Cap Growth ETF. This is complemented by a 25% investment in International Equity, 20% in U.S. Dividend Equity, 10% in Emerging Markets, and a smaller 5% stake in U.S. Small-Cap ETFs. Such a composition suggests a strategic blend of growth, income, and diversification across major global markets and sectors. The emphasis on growth and international exposure is balanced by the inclusion of dividend-paying equities, which can offer more stability and income.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 12.81% and a maximum drawdown of -32.97%, the portfolio has demonstrated robust growth potential alongside significant volatility. The days contributing to 90% of returns being concentrated in just 29 days highlight the portfolio's sensitivity to market movements. This performance, while impressive, underscores the importance of understanding the inherent risks and the potential for wide fluctuations in value.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential future performances for this portfolio. With 962 out of 1,000 simulations showing positive returns and a median projected growth of 286.5%, the forward outlook appears optimistic. However, the broad spread from the 5th to the 67th percentile underscores the uncertainty and risk involved, emphasizing the need for regular review and adjustment based on changing market conditions.

Asset classes Info

  • Stocks
    100%

The portfolio is exclusively invested in stocks, with no allocations to bonds, cash, or other asset classes. This single-asset class focus maximizes growth potential but also increases volatility and risk. Diversifying across different asset classes can provide a buffer against market downturns and reduce portfolio volatility without significantly compromising growth prospects.

Sectors Info

  • Technology
    27%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Industrials
    10%
  • Health Care
    10%
  • Telecommunications
    9%
  • Consumer Staples
    7%
  • Energy
    6%
  • Basic Materials
    3%
  • Utilities
    1%
  • Real Estate
    1%

Sector allocation shows a strong preference for Technology, Financial Services, and Consumer Cyclicals, which are sectors known for their growth potential. However, this concentration also exposes the portfolio to sector-specific risks. Diversifying more evenly across sectors, including more defensive ones like Utilities and Consumer Defensive, could help mitigate these risks.

Regions Info

  • North America
    67%
  • Europe Developed
    14%
  • Asia Emerging
    6%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic distribution with a predominant focus on North America (67%) and significant positions in developed Europe and emerging markets provides a good balance between stability and growth. However, the relatively low exposure to Asia Emerging and Latin America might limit potential gains from these high-growth regions. Increasing exposure to underrepresented regions could enhance returns and diversification.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    32%
  • Mid-cap
    16%
  • Small-cap
    5%
  • Micro-cap
    2%

The market capitalization breakdown, with a bias towards Mega and Big cap stocks, aligns with the portfolio's growth orientation but may limit exposure to the higher growth potential of smaller companies. Incorporating a greater proportion of Small and Micro cap stocks could enhance growth prospects and diversification, albeit with increased 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.

Optimizing the portfolio using the Efficient Frontier could further improve the risk-return ratio, potentially offering higher returns for the same level of risk. This process involves adjusting the allocations within the current asset mix to find the optimal balance. Regularly reviewing and adjusting the portfolio in this manner can help in achieving the best possible outcomes within the defined risk tolerance.

Dividends Info

  • Schwab U.S. Small-Cap ETF 1.50%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab Emerging Markets Equity ETF 2.60%
  • Schwab International Equity ETF 2.60%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Weighted yield (per year) 1.90%

The dividend yield of 1.90% contributes to the portfolio's total return, offering a balance between growth and income. The higher yields from specific ETFs like the U.S. Dividend Equity ETF provide a steady income stream, which is particularly valuable during market volatility or downturns. Maintaining a focus on dividends, while also considering growth, can offer a well-rounded approach to portfolio construction.

Ongoing product costs Info

  • Schwab U.S. Small-Cap ETF 0.04%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab Emerging Markets Equity ETF 0.11%
  • Schwab International Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Weighted costs total (per year) 0.06%

With an overall Total Expense Ratio (TER) of 0.06%, the portfolio benefits from low costs, which can significantly enhance long-term returns. Keeping costs low is a crucial aspect of investment strategy, as high fees can erode returns over time. This portfolio's cost efficiency is commendable and should be maintained.

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