This portfolio has only about 10 months of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.
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Balanced Portfolio with High Diversification and Strong Historical Returns but Potentially Higher Risk Exposure

Report created on Jul 30, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is composed of four ETFs, with a major allocation to the Vanguard S&P 500 ETF at 60%. The Vanguard Total International Stock Index Fund ETF Shares make up 20%, while the Avantis® U.S. Small Cap Value ETF and iShares Bitcoin Trust each contribute 10%. This mix reflects a balanced approach with significant exposure to both domestic and international markets. The inclusion of Bitcoin adds a layer of alternative investment, which can increase volatility but also potential returns. A well-rounded portfolio, but it may benefit from periodic rebalancing to maintain the desired risk level.

Growth Info

Historically, the portfolio has performed impressively with a CAGR of 31.43% and a maximum drawdown of -9.48%. This indicates strong growth potential with moderate risk. However, the fact that 90% of returns were generated in just 13 days highlights the portfolio's reliance on specific market moves. Understanding this can help manage expectations and prepare for periods of stagnation. While past performance is no guarantee of future results, the historical data suggests a robust foundation. Regularly reviewing performance can ensure alignment with long-term goals.

Projection Info

Using a Monte Carlo simulation with 1,000 iterations, the portfolio shows a promising forward outlook. This method simulates various market scenarios to predict potential outcomes, providing a range of possible returns. The 50th percentile projection indicates a 20,318.37% return, while the 5th percentile still shows positive growth at 2,682.46%. All simulations resulted in positive returns, suggesting a high probability of continued growth. While these projections are not predictions, they offer valuable insights into potential risks and rewards, guiding future investment decisions.

Asset classes Info

  • Stocks
    90%
  • Other
    10%

The asset class distribution is primarily in stocks, accounting for 89.64% of the portfolio, with Bitcoin categorized under "Other" at 10.02%. This allocation indicates a strong focus on equities, which typically offer higher returns but also higher risk. The minimal cash component suggests an aggressive growth strategy, maximizing capital deployment. While equities drive growth, diversifying into other asset classes like bonds could reduce volatility. Evaluating the asset class mix periodically can help balance risk and reward, aligning with changing market conditions and personal goals.

Sectors Info

  • Technology
    23%
  • Financials
    15%
  • Consumer Discretionary
    10%
  • Industrials
    9%
  • Health Care
    9%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

The portfolio is diversified across various sectors, with technology leading at 23.05%. Financial services and consumer cyclicals follow, creating a broad exposure to different economic segments. This diversification helps mitigate sector-specific risks, enhancing stability. However, the significant tilt towards technology could increase sensitivity to sector downturns. Balancing sector weights can protect against overexposure and promote resilience. Regularly reviewing sector allocations ensures they reflect current market conditions and investment objectives, maintaining a balanced risk profile.

Regions Info

  • North America
    71%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America at 70.99%, with lesser allocations to Europe, Asia, and other regions. This concentration in North America may limit exposure to global growth opportunities and increase vulnerability to regional economic shifts. Diversifying geographically can enhance portfolio resilience and tap into emerging markets' potential. While the current allocation supports a familiar market, exploring additional international options could provide a more balanced global exposure. Regular assessment of geographic distribution is essential to align with evolving global trends.

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.

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The portfolio is well-positioned on the efficient frontier, suggesting an optimal balance between risk and return. However, the current configuration may not be the absolute optimal, with potential for enhanced returns at a different risk level. The efficient frontier represents the set of portfolios offering the highest expected return for a given risk. While this portfolio is efficient, exploring other risk levels could uncover opportunities for improved performance. Regular optimization checks can ensure the portfolio remains aligned with evolving risk preferences and market conditions.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 3.00%
  • Weighted yield (per year) 1.47%

The portfolio's dividend yield stands at 1.47%, with the Vanguard Total International Stock Index Fund ETF Shares offering the highest yield at 3.0%. Dividends provide a steady income stream, contributing to total returns and offering a cushion during market downturns. While the current yield is modest, reinvesting dividends can enhance long-term growth. Monitoring dividend policies and yields can help maintain a balance between income and growth. Adjusting allocations to higher-yielding assets may boost income, but it's essential to consider the overall risk-return profile.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • iShares Bitcoin Trust 0.12%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.07%

The portfolio's total expense ratio (TER) is 0.07%, reflecting a cost-efficient investment approach. The Vanguard S&P 500 ETF, with the lowest expense ratio at 0.03%, significantly contributes to this efficiency. Keeping costs low is crucial as they directly impact net returns. While the current TER is competitive, regularly reviewing and comparing fund fees ensures continued cost-effectiveness. Prioritizing low-cost investments can enhance overall performance, allowing more capital to compound over time. Maintaining this focus on cost efficiency supports long-term financial goals.

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