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

Report created on Aug 14, 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 well-structured, comprising 90% equities and 10% bonds, with a significant emphasis on U.S. equities (60%) and a notable allocation to international stocks (15%). This mix underlines a strategy that leans towards growth while incorporating income through dividends. The equity portion is diversified across several sectors, with technology, financial services, and healthcare being the top three, reflecting a modern investment approach that balances sectoral exposure. The bond allocation, though modest, adds a layer of stability, with a mix of aggregate and mortgage-backed securities.

Growth Info

Historically, this portfolio has demonstrated robust performance with a Compound Annual Growth Rate (CAGR) of 11.81%. The maximum drawdown of -31.02% indicates resilience during market downturns, a crucial factor for balanced profiles. The days contributing to 90% of returns highlight the impact of significant market movements on portfolio performance. This historical data suggests a well-managed risk-return balance, supporting the portfolio's classification as balanced.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, suggest a wide range of outcomes for this portfolio. With 974 out of 1,000 simulations showing positive returns and a median projected increase of 191.8%, the analysis underscores potential for significant growth. However, it's important to remember that these projections are not guarantees but tools to assess risk and potential returns.

Asset classes Info

  • Stocks
    89%
  • Bonds
    10%
  • Cash
    1%

The allocation across asset classes—89% stock and 10% bond—provides a solid foundation for growth while incorporating a cushion against volatility through bonds. This balance is typical for investors with a medium to long-term horizon, aiming for growth but wary of the short-term market fluctuations. The small cash position offers liquidity for opportunities or rebalancing.

Sectors Info

  • Technology
    23%
  • Financials
    14%
  • Health Care
    10%
  • Industrials
    9%
  • Consumer Discretionary
    9%
  • Consumer Staples
    8%
  • Telecommunications
    6%
  • Energy
    5%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    1%

Sectoral allocation shows a well-thought-out strategy, emphasizing sectors like technology and financial services, which have historically provided strong growth, and healthcare, which adds defensive qualities. This sectoral spread is conducive to capturing growth while mitigating sector-specific risks, a hallmark of a diversified investment approach.

Regions Info

  • North America
    76%
  • Europe Developed
    6%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographic exposure is heavily weighted towards North America (76%), with modest allocations to developed and emerging markets abroad. This geographical distribution suggests a preference for the stability and growth potential of U.S. markets while still capturing global diversification benefits. Increasing exposure to emerging and developed international markets could further enhance diversification.

Market capitalization Info

  • Large-cap
    35%
  • Mega-cap
    34%
  • Mid-cap
    18%
  • Small-cap
    2%

The focus on big and mega-cap stocks (69% combined) aligns with the portfolio's balanced risk profile, as these companies typically offer stability and resilience. However, the relatively smaller allocation to medium, small, and micro-caps suggests an opportunity to enhance growth potential and diversification by increasing exposure to these segments.

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, this portfolio appears to be positioned for an optimal risk-return balance based on its current allocation. However, ongoing monitoring and rebalancing are essential to maintain this efficiency, especially as market conditions change. Adjustments may be necessary to ensure the portfolio continues to meet the investor's risk tolerance and investment goals.

Dividends Info

  • iShares Core U.S. Aggregate Bond ETF 3.80%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • SPDR® Portfolio S&P 500 ETF 1.20%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 1.70%
  • Vanguard Mortgage-Backed Securities Index Fund ETF Shares 4.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 2.15%

Dividend yields across the ETFs contribute to the portfolio's income, with an overall yield of 2.15%. This approach supports the portfolio's balanced profile by providing a steady income stream, which can be reinvested for growth or used as income. The focus on dividend-paying assets is a prudent strategy for investors seeking growth with income.

Ongoing product costs Info

  • iShares Core U.S. Aggregate Bond ETF 0.03%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 0.06%
  • Vanguard Mortgage-Backed Securities Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

The portfolio benefits from low total expense ratios (TER), averaging 0.04%, which is impressive and supports better long-term performance by minimizing costs. Keeping investment costs low is crucial for enhancing net returns, especially in a balanced portfolio where the objective is to achieve a steady growth rate without excessive risk.

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