A growth focused North America tilted portfolio with balanced risk and strong historic performance

Report created on Aug 21, 2024

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 built almost entirely from broad, low cost ETFs, with about 91% in equities and only a small slice in bonds and cash. The biggest piece is a large US index fund, complemented by two diversified core ETF portfolios and a focused technology ETF. This mix makes the holdings simple and easy to manage, and the structure looks quite close to what many balanced growth benchmarks use, just with a slightly stronger tilt toward stocks. A setup like this helps keep behaviour simple through market ups and downs. To further steady the ride, shifting a bit more into fixed income could make the overall profile feel more “balanced” than “growthy.”

Growth Info

Using a simple example, if someone had invested $10,000 in this mix when data collection started, the 16.35% CAGR (Compound Annual Growth Rate) suggests it would have grown like a car averaging high speed over a long trip, roughly doubling several times over the period. That’s a very strong result, especially compared with many blended benchmarks that often sit in the high single to low double digits. The tradeoff is a max drawdown of about -27.56%, meaning there were times when values fell sharply. While this track record is impressive, it’s still only history; markets change, so it’s wise not to expect the same pace forever.

Projection Info

The Monte Carlo simulation—1,000 different “what if” futures built from historical patterns—shows a very wide range of outcomes. Monte Carlo basically shuffles and replays past returns in many combinations to see how a portfolio might behave, a bit like simulating thousands of alternate weather forecasts from past climate data. Here, the median path ending around 786% suggests strong growth potential, while the 5th percentile at about 156.5% shows that even weaker scenarios still grew meaningfully. An average simulated return of 18.1% is very optimistic, so it’s wise to treat these as rough guideposts, not promises. Planning based on more conservative expectations can help avoid disappointment.

Asset classes Info

  • US Equity
    78%
  • Stocks
    9%
  • Bonds
    2%

The allocation is heavily tilted toward stocks, with about 78% in US equities, 9% in broader global equities, and only around 2% in bonds plus negligible cash. Stocks drive long term growth but can swing sharply, while bonds act more like shock absorbers. For a “balanced” risk profile, many investors might hold more bonds to soften downturns, though recent years have rewarded equity heavy allocations. This portfolio is well set up for growth oriented goals, but anyone wanting smoother performance could consider gradually increasing fixed income exposure using diversified bond funds rather than making big, sudden shifts.

Sectors Info

  • Technology
    32%
  • Financials
    15%
  • Consumer Discretionary
    10%
  • Telecommunications
    10%
  • Industrials
    8%
  • Health Care
    8%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector exposure is quite broad across 11 major areas, which is good, but there’s a clear tilt toward technology at 32%, well above what broad global benchmarks usually hold. Financials, consumer cyclicals, communication services, industrials, and healthcare are also meaningfully represented, which supports diversification across different parts of the economy. A tech heavy tilt tends to help when innovation is rewarded and interest rates are stable or falling, but it can hurt more when rates rise or sentiment turns against growth companies. This composition is attractive for long term growth, yet it’s worth checking that the tech bias is intentional and not just an accidental byproduct of ETF choices.

Regions Info

  • North America
    89%
  • Europe Developed
    6%
  • Japan
    2%
  • Asia Developed
    1%
  • Asia Emerging
    1%
  • Australasia
    1%

Geographically, the portfolio is strongly concentrated in North America at about 89%, with modest slices in developed Europe, Japan, and a sprinkling across other developed and emerging regions. This matches a common “home and US bias” seen in many real world portfolios and has worked well in the last decade, as North American markets—especially the US—have outperformed many others. The downside is more vulnerability if that region underperforms or faces specific economic shocks. Gradually building a bit more exposure to other developed and emerging regions could smooth country specific risks while still keeping the core anchored in familiar markets.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    32%
  • Mid-cap
    17%
  • Small-cap
    2%

In terms of company size, the allocation is dominated by mega and big caps, with about 77% there, 17% in medium caps, and only a small exposure to small caps. Large companies tend to be more stable, better researched, and more closely tracked by major indexes, which can reduce some risk and surprises. Smaller companies often bring more volatility but also different growth drivers that don’t always move in lockstep with giants. This large cap bias aligns well with many major benchmarks and supports a smoother ride. For someone wanting a bit more diversification of growth sources, a slightly higher mid or small cap share could be considered.

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.

From a risk versus return perspective, this portfolio likely sits on the “growthier” side of the Efficient Frontier for a balanced profile. The Efficient Frontier is a curve showing the best possible risk return tradeoffs using a given set of assets—“efficient” meaning the highest expected return for each level of volatility. Based on current holdings, small shifts among the existing ETFs—such as modestly increasing the fixed income share or trimming concentrated areas like tech—could move the mix closer to that curve. It’s important to remember that efficiency focuses purely on math around risk and return, not on preferences like income needs or ethical screens.

Dividends Info

  • TD Global Technology Leaders Index ETF 0.10%
  • Vanguard S&P 500 Index ETF 0.50%
  • iShares Core Equity Portfolio 0.90%
  • iShares Core Growth ETF Portfolio 0.80%
  • Weighted yield (per year) 0.61%

The total portfolio yield of about 0.61% is relatively low, which is typical for growth oriented, tech tilted portfolios. The focus here is clearly on capital appreciation—growing the value of holdings—rather than generating a big income stream today. Dividends can be thought of as “cash back” from investments and are useful for covering spending needs or reinvesting steadily over time. For long horizon investors who are still adding savings, a lower yield can be perfectly fine, especially if companies are reinvesting profits back into their businesses. If dependable income becomes a priority later, gradually adding higher yielding equity or bond funds could help balance things out.

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