Balanced and broadly diversified portfolio with a focus on U.S. equities and dividends

Report created on Jul 24, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is structured with a heavy emphasis on U.S. equities, represented by the Vanguard S&P 500 ETF and the Schwab U.S. Dividend Equity ETF, making up 75% of the portfolio. The remaining 25% is allocated to international stocks through the Vanguard Total International Stock Index Fund ETF Shares. This composition suggests a strategy focused on achieving growth through well-established U.S. companies while also seeking income through dividends and some level of global diversification.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 12.54% and a maximum drawdown of -33.67%, the portfolio has demonstrated robust growth potential tempered by significant volatility. The days that make up 90% of returns being concentrated in just 29.0 days indicates that much of the portfolio's performance hinges on a few critical trading days, underscoring the importance of staying invested over the long term to capture these gains.

Projection Info

The Monte Carlo simulation, using 1,000 iterations, predicts a wide range of outcomes, with the 50th percentile suggesting a potential increase of 329.5% in portfolio value. This forward-looking tool, while based on historical data, helps in understanding possible future scenarios but cannot guarantee them, highlighting the uncertainty inherent in investing.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The allocation is nearly entirely in stocks (99%), with a minimal cash holding (1%). This high equity exposure is suitable for growth-oriented investors but comes with higher volatility. Diversification across asset classes could help mitigate risk, suggesting a potential area for improvement could be the introduction of bonds or alternative investments to reduce volatility.

Sectors Info

  • Technology
    22%
  • Financials
    15%
  • Health Care
    11%
  • Industrials
    11%
  • Consumer Discretionary
    10%
  • Consumer Staples
    9%
  • Energy
    8%
  • Telecommunications
    7%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

The sector allocation is well-spread across technology, financial services, healthcare, industrials, and consumer sectors, reflecting a balanced approach to capturing growth across the economic spectrum. However, the heavy weighting towards technology and financial services sectors may increase sensitivity to market shifts affecting these industries.

Regions Info

  • North America
    77%
  • Europe Developed
    10%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation shows a strong bias towards North America (77%), with modest exposure to developed Europe (10%) and emerging and developed Asia. This U.S.-centric approach aligns with the portfolio's focus on stable, growth-oriented investments but may limit potential gains from emerging markets, which could offer higher growth rates.

Market capitalization Info

  • Large-cap
    40%
  • Mega-cap
    34%
  • Mid-cap
    21%
  • Small-cap
    3%

The focus on big (40%) and mega-cap (34%) companies underscores the portfolio's strategy of investing in large, established firms likely to offer stable returns. Medium-cap stocks add some growth potential, though the limited exposure to small and micro-caps suggests a cautious approach to 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 allocation appears to be well-optimized for a balance of risk and return, based on the Efficient Frontier analysis. However, it's important to regularly review this balance, as shifts in market conditions or changes in the investor's financial goals could necessitate adjustments to maintain the optimal risk-return profile.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.80%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 2.25%

The dividend yields from the Schwab U.S. Dividend Equity ETF (3.80%) and the Vanguard Total International Stock Index Fund ETF Shares (2.80%) contribute positively to the portfolio's overall yield of 2.25%. This approach balances growth with income generation, making it attractive for investors seeking both capital appreciation and income.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

With an average Total Expense Ratio (TER) of 0.04%, the portfolio benefits from low costs, enhancing long-term return potential. Low-cost ETFs are a prudent choice for cost-conscious investors, ensuring that more of the portfolio's returns are retained rather than lost to fees.

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