This portfolio has only about 10 years 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.

Moderately Diversified Growth Portfolio with High Technology Exposure

Report created on Jul 28, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is composed of a mix of ETFs and individual stocks, with a strong focus on large-cap growth. Schwab U.S. Large-Cap Growth ETF and Vanguard S&P 500 ETF make up the bulk of the portfolio, accounting for 30.2% and 30.0% respectively. There is also a significant allocation to high yield bonds and dividend equities. The portfolio includes individual stocks like Apple, Microsoft, and NVIDIA, which adds a layer of concentration risk but also potential for high returns. The composition suggests a growth-oriented strategy with moderate diversification.

Growth Info

Historically, the portfolio has shown strong performance with a compound annual growth rate (CAGR) of 26.33%. However, this high return comes with significant volatility, as evidenced by a maximum drawdown of -39.87%. This means that while the portfolio has the potential for high returns, it also carries a high level of risk. The days that make up 90% of returns are just 50, indicating that the portfolio's performance is driven by short bursts of high returns.

Projection Info

Using a Monte-Carlo simulation with 1,000 runs, the portfolio's future performance was projected. This type of simulation considers various market conditions to estimate future returns. The 50th percentile outcome shows an end portfolio value of 1,425.23%, while the 5th and 67th percentiles show 192.54% and 2,132.93% respectively. The simulations indicate a high likelihood of positive returns, with 997 out of 1,000 runs being profitable. The annualized return across all simulations is 25.06%, suggesting continued high growth potential.

Asset classes Info

  • Stocks
    86%
  • Bonds
    14%

The asset classes in the portfolio are primarily stocks, making up 85.93% of the total allocation. Bonds account for 13.89%, and a negligible amount is in cash. This heavy tilt towards equities aligns with a high-risk, high-reward strategy. The inclusion of bonds adds a layer of stability but is not enough to significantly reduce the portfolio's overall risk. For better risk management, a more balanced allocation between stocks and bonds could be considered.

Sectors Info

  • Technology
    36%
  • Energy
    17%
  • Health Care
    9%
  • Consumer Discretionary
    8%
  • Financials
    8%
  • Telecommunications
    7%
  • Industrials
    5%
  • Consumer Staples
    4%
  • Real Estate
    3%
  • Basic Materials
    1%
  • Utilities
    1%

The sector allocation is heavily weighted towards technology, which constitutes 35.64% of the portfolio. Other significant sectors include energy and healthcare. While this concentration in technology has likely driven past performance, it also exposes the portfolio to sector-specific risks. Diversifying into other sectors like consumer defensives or utilities could mitigate some of this risk. A more balanced sector allocation would provide better protection against market volatility.

Regions Info

  • North America
    94%
  • Europe Developed
    6%

Geographically, the portfolio is overwhelmingly concentrated in North America, making up 93.74% of the total allocation. A small portion is invested in Europe and Asia. This lack of geographic diversification could expose the portfolio to regional risks. Expanding the geographic allocation to include more international markets could provide a hedge against North American market downturns. A more globally diversified portfolio would be more resilient in various market conditions.

Dividends Info

  • Apple Inc 0.40%
  • Microsoft Corporation 0.70%
  • Realty Income Corp 5.40%
  • Schwab U.S. Dividend Equity ETF 3.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • SPDR Portfolio High Yield Bond 7.70%
  • Vanguard S&P 500 ETF 1.30%
  • Weighted yield (per year) 2.18%

The portfolio includes dividend-paying assets, such as the Schwab U.S. Dividend Equity ETF and individual stocks like Apple and Microsoft. While the dividend yield data isn't provided, these assets can offer a steady income stream, which is beneficial for long-term growth and stability. However, the focus on growth stocks means the overall dividend yield might be lower. Balancing growth and income by adding more dividend-focused assets could enhance the portfolio's income potential.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • SPDR Portfolio High Yield Bond 0.05%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.04%

The portfolio's total expense ratio (TER) is impressively low at 0.04%. This low cost is a significant advantage, as it means more of the portfolio's returns are retained by the investor. Minimizing costs is crucial for long-term investment success, as high fees can erode returns over time. Maintaining this low-cost structure while ensuring adequate diversification and risk management will be key to optimizing the portfolio's performance.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey