Balanced portfolio with a strong focus on US equities and notable dividend yield

Report created on Jul 6, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

This portfolio is predominantly composed of US equity ETFs, with a significant allocation to the Vanguard S&P 500 ETF, making up over 40% of the portfolio. The inclusion of dividend-focused ETFs like the Schwab U.S. Dividend Equity ETF and two JPMorgan Equity Premium Income ETFs highlights a strategy geared towards income generation alongside capital appreciation. The bond and real estate allocations, though smaller, contribute to diversification, albeit within a narrow scope due to the heavy emphasis on US markets.

Growth Info

The portfolio has shown a Compound Annual Growth Rate (CAGR) of 10.63%, which is a solid performance, especially when considering the balanced risk profile. The maximum drawdown of -15.45% indicates resilience during market downturns, and the concentration of returns in a limited number of days suggests that timing the market plays a significant role in capturing gains. Comparing this performance to benchmarks could offer further insights into its relative strength.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential performances for this portfolio, with a median increase of 152.9%. While these projections offer a glimpse into possible future states, it's crucial to remember that they are based on past data, which is not a guaranteed predictor of future performance. The high percentage of simulations with positive returns underscores the portfolio's solid foundation, though.

Asset classes Info

  • Stocks
    77%
  • Bonds
    11%
  • Real Estate
    6%
  • No data
    4%
  • Cash
    2%

The portfolio's asset allocation leans heavily towards stocks (77%), with a smaller presence in bonds (11%), real estate (6%), and minimal cash holdings. This allocation supports a growth-oriented strategy but with moderate risk due to the bond and real estate components. Comparing this mix to a typical balanced portfolio, the stock-heavy approach is more aggressive, suggesting a tilt towards growth over pure balance.

Sectors Info

  • Technology
    25%
  • Consumer Discretionary
    9%
  • Financials
    8%
  • Health Care
    8%
  • Telecommunications
    8%
  • Real Estate
    7%
  • Consumer Staples
    7%
  • Industrials
    7%
  • Energy
    5%
  • Utilities
    2%
  • Basic Materials
    1%

Sector allocations reveal a heavy tilt towards technology, followed by a mix of consumer cyclicals, financial services, healthcare, and communication services. This sector spread aligns with a growth strategy but may carry higher volatility, particularly in tech-heavy portfolios. Diversifying further across sectors could reduce sector-specific risks and smooth out returns over time.

Regions Info

  • North America
    86%
  • Europe Developed
    1%

With 86% of assets allocated to North America, the portfolio's geographic exposure is highly concentrated. This focus enhances exposure to US market growth but also increases vulnerability to regional economic shifts. Expanding into more diverse international holdings, even within developed markets, could offer better global balance and potential risk mitigation.

Market capitalization Info

  • Large-cap
    34%
  • Mega-cap
    28%
  • Mid-cap
    18%
  • Small-cap
    2%
  • Micro-cap
    1%

The market capitalization breakdown shows a preference for big and mega-cap stocks, which tend to be more stable but might offer lower growth potential compared to smaller caps. Including a broader mix of medium, small, and micro-caps could introduce more growth opportunities, albeit with increased 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 portfolio's current expected return is below the more efficient portfolio's expected return of 4.40% at the same risk level. This suggests there's room for optimization to achieve a better risk-return balance. Adjusting the asset allocation could enhance performance without necessarily increasing risk, moving the portfolio closer to the Efficient Frontier, where the best possible risk-return ratio is achieved.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • JPMorgan Equity Premium Income ETF 8.30%
  • JPMorgan Nasdaq Equity Premium Income ETF 11.40%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • iShares® 0-3 Month Treasury Bond ETF 4.20%
  • Vanguard Real Estate Index Fund ETF Shares 3.90%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 4.25%

The portfolio's dividend yield averaging 4.25% is a notable feature, providing a steady income stream. This focus on dividends is commendable for those seeking regular income, but it's important to balance yield-seeking with growth potential to ensure the portfolio does not become overly conservative or concentrated in high-dividend but slower-growth sectors.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • JPMorgan Equity Premium Income ETF 0.35%
  • JPMorgan Nasdaq Equity Premium Income ETF 0.35%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • iShares® 0-3 Month Treasury Bond ETF 0.07%
  • Vanguard Real Estate Index Fund ETF Shares 0.12%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.12%

With a total expense ratio (TER) of 0.12%, the portfolio is efficiently managed cost-wise, which is beneficial for long-term growth. Lower costs mean more of the investment returns are kept by the investor, a crucial factor in compounding wealth over time. This cost efficiency is a strong aspect of the portfolio's construction.

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