A portfolio that thinks diversification is just a fancy word for more US stocks
Report created on Aug 21, 2025Risk profile
5/7
Diversification profile
3/5
Positions
-
IV iShares Core S&P 500 ETF
IVV - US4642872000 50.00% -
UR iShares MSCI World ETF
URTH - US4642863926 30.00% -
QQ Defiance Nasdaq 100 Income Target ETF
QQQT 20.00%
Diving into this portfolio is like finding out your supposedly international buffet is 92% American cuisine with a sprinkle of European flair. With half of your assets in the iShares Core S&P 500 ETF and another hefty chunk in the iShares MSCI World ETF, which also leans heavily on US stocks, you've basically doubled down on the American dream. The attempt at diversification is cute, but let's call it what it is: a slightly varied echo chamber of US equities.
Growth
Looking at the historic performance, a CAGR of 16.15% might have you doing a victory lap, but let's not forget that past performance is like being the high school quarterback - cool at the time but not necessarily indicative of future success. The four days that make up 90% of your returns should be a huge red flag. It's like your entire financial future hinges on hitting those few home runs. Volatile much?
Projection
Monte Carlo simulations are like your financial crystal ball, but remember, they're not foolproof. They predict a wide range of outcomes for your portfolio, from "buying a yacht" to "maybe keep the day job." A 624.7% median increase sounds like you're on the path to riches, but with your eggs so heavily in one basket, any major market shake-up could turn those projections from dreamy to nightmarish real quick.
Asset classes
- Stocks 100%
All in on stocks, huh? With 100% of your portfolio in equities, you're riding the high-risk, high-reward wave with no life jacket. It's like going to Vegas and putting it all on black - thrilling, sure, but if the wheel stops on red, you're walking home. A little bond action or some alternative assets might not be as sexy, but they could save you from a portfolio wipeout.
Sectors
- Technology 37%
- Financials 12%
- Consumer Discretionary 11%
- Telecommunications 11%
- Health Care 8%
- Industrials 8%
- Consumer Staples 5%
- Energy 3%
- Utilities 2%
- Basic Materials 2%
- Real Estate 2%
Your tech sector addiction (37%) is like having too much of a good thing - eventually, it's going to hurt. Sure, tech has been the golden child of the markets, but sectors rotate in and out of favor like fashion trends. When tech catches a cold (and it will), your portfolio is going to sneeze, hard. Diversifying across sectors is like eating your veggies - not always fun, but good for your financial health.
Regions
- North America 92%
- Europe Developed 5%
- Japan 2%
- Australasia 1%
With 92% in North America, your portfolio screams "America first!" But what about the rest of the world? Ignoring emerging markets and other developed regions is like refusing to eat anything but hamburgers. Sure, they're great, but you're missing out on a world of flavors. A little more global seasoning could add some zest to your returns and reduce the risk of a domestic market downturn.
Market capitalization
- Mega-cap 49%
- Large-cap 34%
- Mid-cap 16%
- Small-cap 1%
Mega and big caps make up the lion's share of your portfolio, which is like always betting on the heavyweight champion. It's a safe bet until it isn't. The small and medium-sized companies are where growth potential lies, akin to scouting the underdog with knockout power. Sure, they're riskier, but they can also be a source of significant gains. Don't be afraid to back a few more underdogs.
Redundant positions
-
High correlationiShares Core S&P 500 ETFiShares MSCI World ETFDefiance Nasdaq 100 Income Target ETF
Highly correlated assets in your portfolio are like having three different apps for the same TV show - redundant. The iShares Core S&P 500 ETF and iShares MSCI World ETF overlap more than teenagers' social circles. Throw in the Defiance Nasdaq 100 Income Target ETF, and it's an echo chamber. Diversification means finding assets that don’t move in lockstep, not collecting variations of the same theme.
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.
Your portfolio is on the right track, but it's like you've set off on a journey with a map you found in a cereal box. The Monte Carlo simulation and your current returns suggest you're not far off, but there's room for improvement. Optimizing for efficiency could be the difference between "doing well" and "knocking it out of the park." It's time to trade in that cereal box for a GPS.
Dividends
- iShares Core S&P 500 ETF 1.20%
- iShares MSCI World ETF 1.40%
- Defiance Nasdaq 100 Income Target ETF 20.90%
- Weighted yield (per year) 5.20%
Your dividend strategy is like finding a $20 in your winter coat - a nice surprise but not a reliable income source. That 20.9% yield on the Defiance ETF sounds juicy until you realize it's skewing your portfolio's overall yield. High yields are tempting but remember, they can also signal risk. Balancing yield with growth potential is key to not getting left holding the bag if the market turns.
Ongoing product costs
- iShares Core S&P 500 ETF 0.03%
- iShares MSCI World ETF 0.24%
- Defiance Nasdaq 100 Income Target ETF 1.05%
- Weighted costs total (per year) 0.30%
On the cost front, you're doing something right, with an average TER of 0.30%. It's like finding a decently priced, reliable car; it gets you where you need to go without costing an arm and a leg. Just be wary of that 1.05% fee on the Defiance ETF. It's like a hidden surcharge for a premium service you might not need. Keep an eye on those fees; over time, they can eat into your returns like a termite.
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