Balanced yet tech-heavy portfolio with a strong focus on US equities and high dividend yield options

Report created on Oct 27, 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 characterized by a heavy emphasis on equities, with 100% of its allocation in stock ETFs. The dominant presence of the Vanguard Total World Stock Index Fund ETF and the Schwab U.S. Dividend Equity ETF, comprising two-thirds of the portfolio, suggests a balanced approach towards global exposure and income generation. However, the significant weight in technology-focused and large-cap growth ETFs indicates a tilt towards growth-oriented investments. This composition aligns with a balanced risk profile but leans towards growth, suggesting an appetite for higher returns albeit with increased volatility.

Growth Info

With a CAGR of 14.56% and a maximum drawdown of -24.86%, the portfolio has demonstrated strong growth potential while experiencing notable volatility. The days contributing most to returns indicate significant gains are concentrated in short periods, emphasizing the impact of market timing and volatility on performance. This historical performance, while impressive, should be contextualized within the broader market trends during the period, especially the tech sector's robust performance.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 670.1%, underscoring the portfolio's growth potential. However, the significant spread between the 5th and 67th percentiles highlights the inherent uncertainty and risk. These projections, based on historical data, are useful for understanding potential volatility but should not be seen as guarantees, given the unpredictable nature of markets.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks, without allocation to bonds, real estate, or other asset classes, limits its diversification. While stocks offer high growth potential, the absence of other asset classes increases susceptibility to market fluctuations. Diversifying across different asset classes can reduce risk and smooth out returns over time, particularly in volatile markets.

Sectors Info

  • Technology
    34%
  • Consumer Discretionary
    10%
  • Health Care
    10%
  • Financials
    10%
  • Consumer Staples
    9%
  • Industrials
    8%
  • Telecommunications
    8%
  • Energy
    8%
  • Basic Materials
    2%
  • Utilities
    1%
  • Real Estate
    1%

The sector allocation reveals a heavy tilt towards technology, with significant investments also in consumer cyclicals, healthcare, and financial services. This sector distribution supports the portfolio's growth orientation but may increase volatility, as these sectors can be more sensitive to economic cycles. Diversifying more evenly across sectors could mitigate some risks and provide more stability.

Regions Info

  • North America
    88%
  • Europe Developed
    5%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%
  • Australasia
    1%

The geographic distribution is heavily skewed towards North America, particularly the USA, with minimal exposure to emerging markets and other developed regions. This concentration enhances exposure to the US economy's growth potential but also increases vulnerability to its market downturns. Broadening geographic exposure could offer benefits from global economic growth and reduce region-specific risks.

Market capitalization Info

  • Large-cap
    38%
  • Mega-cap
    33%
  • Mid-cap
    22%
  • Small-cap
    5%
  • Micro-cap
    1%

The portfolio's focus on big and mega-cap stocks aligns with its growth and stability objectives, as these companies often have more established businesses. However, the relatively lower allocation to small and micro-cap stocks may limit opportunities for higher growth rates these segments can offer. Considering a more balanced market cap distribution could enhance potential returns while managing risk.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Invesco NASDAQ 100 ETF
    Vanguard Information Technology Index Fund ETF Shares
    High correlation

The high correlation among the tech-focused ETFs suggests redundancy, limiting the portfolio's diversification benefits. This overlap, particularly between growth-oriented ETFs, amplifies exposure to sector-specific downturns. Reducing overlap by reallocating assets among less correlated investments could enhance diversification and reduce 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 asset allocation demonstrates a need for optimization to enhance diversification and reduce risk. The portfolio's heavy tilt towards correlated assets, particularly within the technology sector, suggests opportunities to improve the risk-return profile by diversifying across less correlated assets and sectors. Employing the Efficient Frontier concept could identify an allocation that offers the best possible return for a given level of risk.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Information Technology Index Fund ETF Shares 0.40%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 1.98%

The dividend yield focus, especially through the Schwab U.S. Dividend Equity ETF, contributes positively to the portfolio's income generation, with a total yield of 1.98%. This approach provides a steady income stream, which can be particularly beneficial in volatile or declining markets. However, balancing yield-seeking with growth investments is crucial to ensure long-term capital appreciation.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.08%

The portfolio's total expense ratio (TER) of 0.08% is impressively low, which supports better long-term performance by minimizing the drag on returns. Keeping costs low is a fundamental principle of investing that can significantly impact net returns, especially over extended periods.

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