Balanced portfolio with a strong focus on US markets and technology sector

Report created on Nov 4, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is composed predominantly of ETFs, focusing on broad market indices with a significant tilt towards the US market. The allocation is heavily weighted towards the Vanguard Total Stock Market Index Fund ETF Shares at 60%, followed by international exposure through the Vanguard Total International Stock Index Fund ETF Shares at 20%. The remaining 20% is split evenly between the Invesco NASDAQ 100 ETF and the Vanguard S&P 500 ETF, emphasizing large-cap and technology stocks. This composition suggests a strategy aiming for diversified exposure to both US and international equities, with a notable emphasis on technology and large-cap stocks.

Growth Info

Historically, the portfolio has demonstrated robust growth with a Compound Annual Growth Rate (CAGR) of 14.88%. While impressive, it's important to note that past performance is not indicative of future results. The maximum drawdown of -26.55% indicates the portfolio's vulnerability during market downturns. Days contributing to 90% of returns were notably few, highlighting the impact of significant market movements on performance. This historical performance should be viewed as one of many tools in assessing the potential future behavior of the portfolio.

Projection Info

Monte Carlo simulations, which use historical data to project a range of possible future outcomes, suggest a wide dispersion in potential portfolio values. With a majority of simulations (997 out of 1,000) showing positive returns, the median projected growth is substantial. However, the range from the 5th to the 67th percentile underscores the inherent uncertainty in these projections. Investors should consider these projections as illustrative, recognizing the limitations of using past data to predict future returns.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is almost entirely in stocks (99%), with a minimal cash holding (1%). This high equity exposure aligns with the portfolio's balanced risk profile but leans towards higher volatility and growth potential. The lack of diversification into other asset classes like bonds or real estate may limit the portfolio's ability to mitigate risk during equity market downturns. Investors might consider diversifying across more asset classes to achieve a more balanced risk-return profile.

Sectors Info

  • Technology
    32%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Industrials
    10%
  • Health Care
    9%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

The sector allocation reveals a heavy emphasis on technology (32%), followed by financial services and consumer cyclicals. This technology tilt aligns with the portfolio's focus on growth but introduces sector-specific risks, including higher volatility and sensitivity to interest rate changes. The presence of 11 sectors, albeit with some underrepresented, indicates an attempt at diversification. However, the heavy tech concentration may overshadow the benefits of this diversification during tech-specific downturns.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is heavily weighted towards North America (81%), with modest exposure to developed Europe and emerging Asian markets. This concentration in the US market is consistent with the portfolio's underlying ETFs but may expose investors to regional economic and political risks. Expanding geographic diversification, especially into emerging markets, could offer growth opportunities and reduce the impact of regional downturns.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    31%
  • Mid-cap
    18%
  • Small-cap
    5%
  • Micro-cap
    1%

The market capitalization breakdown shows a preference for mega (44%) and big-cap (31%) stocks, which are typically less volatile than smaller companies. This allocation supports the portfolio's balanced risk classification but may limit potential returns from the higher growth rates often found in smaller companies. Considering a more varied allocation across market caps could enhance the portfolio's growth potential while maintaining a balanced risk profile.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation between the Vanguard S&P 500 ETF and Vanguard Total Stock Market Index Fund ETF Shares indicates overlapping holdings that may not provide the intended diversification benefits. This redundancy could amplify risks during market downturns affecting these correlated assets. Reducing overlap by reallocating investments could improve the portfolio's diversification and resilience against market volatility.

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 enhance the risk-return ratio by adjusting the asset allocation without necessarily increasing risk. The current overlap in highly correlated assets suggests an opportunity to improve diversification. By reallocating funds from overlapping assets to underrepresented sectors or geographies, the portfolio could achieve a more efficient distribution of risk and potential return.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.36%

The portfolio's dividend yield stands at an average of 1.36%, with the highest yield from the Vanguard Total International Stock Index Fund ETF Shares. While dividends contribute to the portfolio's total return, the focus on growth-oriented ETFs means dividend income is not the primary objective. Investors seeking income in addition to growth might consider adjusting the portfolio to include higher-yielding assets.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.05%

The portfolio's overall expense ratio is relatively low, averaging 0.05%, which is beneficial for long-term growth as lower costs translate to higher net returns. This cost efficiency is a positive aspect of the portfolio, minimizing the drag on performance. Investors should continue to monitor fund expenses, as even small differences can have a significant impact over time.

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