Balanced portfolio with a focus on US equities and dividends showing low diversity

Report created on Nov 9, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is heavily weighted towards US equities, with significant allocations in large-cap index funds and dividend-focused ETFs. This concentration underscores a preference for established, income-generating assets over more speculative or growth-oriented investments. While this composition may offer stability and consistent dividend income, it also indicates a low level of diversification, particularly in terms of asset classes and geographic exposure.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 14.25%, with a maximum drawdown of -22.89%. This performance suggests the portfolio has managed to capture substantial upside during bullish market periods while experiencing significant, yet not uncommon, declines during downturns. The days contributing most to returns highlight the impact of short-term volatility and the importance of staying invested through market cycles.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 433.4%—indicating potential for substantial growth. However, these simulations also underscore the uncertainty inherent in investing, with outcomes varying greatly. It's crucial to understand that while these projections offer insight, they are based on historical data and cannot guarantee future performance.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive allocation to stocks, without diversification into other asset classes like bonds or real estate, increases its vulnerability to market volatility. While stocks offer higher potential returns, they also come with increased risk. Diversifying across asset classes can mitigate risk and smooth out returns over time, particularly in volatile markets.

Sectors Info

  • Technology
    27%
  • Financials
    12%
  • Health Care
    10%
  • Industrials
    8%
  • Telecommunications
    8%
  • Consumer Staples
    8%
  • Real Estate
    6%
  • Consumer Discretionary
    5%
  • Energy
    5%
  • Utilities
    5%
  • Consumer Discretionary
    4%
  • Basic Materials
    2%

Sector allocation is concentrated in technology, financial services, and healthcare, which can offer growth but also expose the portfolio to sector-specific risks. For instance, technology stocks may be more volatile in response to interest rate changes. Balancing sector exposure can reduce risk and capitalize on growth opportunities across the economy.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

With 99% of assets in North America, the portfolio's geographic exposure is highly concentrated. This focus may limit exposure to growth opportunities in emerging markets or developed economies outside the US. Diversifying geographically can reduce the impact of regional downturns and tap into growth elsewhere.

Market capitalization Info

  • Large-cap
    37%
  • Mega-cap
    31%
  • Mid-cap
    27%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio's emphasis on big and mega-cap stocks aligns with its balanced risk profile, offering stability and potential for dividend income. However, the lower allocation to medium, small, and micro-cap stocks may limit exposure to high-growth opportunities. Including a wider range of market caps can enhance growth potential and diversification.

Redundant positions Info

  • iShares Core Dividend Growth ETF
    Schwab U.S. Dividend Equity ETF
    High correlation
  • VANGUARD 500 INDEX FUND ADMIRAL SHARES
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation between certain ETFs and index funds in the portfolio indicates overlapping exposure, particularly in the US stock market. This redundancy limits diversification benefits and can amplify risk during market downturns. Reducing overlap by reallocating assets can enhance portfolio efficiency and diversification.

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.

Optimizing the portfolio using the Efficient Frontier could improve the risk-return ratio by adjusting asset allocation without necessarily increasing risk. This process might involve reducing highly correlated assets and introducing new asset classes or geographic regions to enhance diversification and potential returns.

Dividends Info

  • iShares Core Dividend Growth ETF 2.00%
  • National Retail Properties Inc 4.30%
  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.90%
  • VANGUARD 500 INDEX FUND ADMIRAL SHARES 1.10%
  • Vanguard Mid-Cap Growth Index Fund ETF Shares 0.60%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Utilities Select Sector SPDR® Fund 2.60%
  • Weighted yield (per year) 1.72%

Dividend yields contribute positively to the portfolio's total return, offering a blend of income and potential for capital appreciation. The focus on dividend-generating assets is prudent for investors seeking regular income streams. However, ensuring a balance between high-yield and growth-oriented investments can optimize total returns.

Ongoing product costs Info

  • iShares Core Dividend Growth ETF 0.08%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • VANGUARD 500 INDEX FUND ADMIRAL SHARES 0.04%
  • Vanguard Mid-Cap Growth Index Fund ETF Shares 0.07%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Utilities Select Sector SPDR® Fund 0.09%
  • Weighted costs total (per year) 0.05%

The portfolio's overall expense ratio is low, enhancing net returns over the long term. Keeping costs low is crucial for maximizing investment growth, as fees can erode returns significantly over time. The selection of low-cost funds demonstrates a strategic approach to cost management.

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