A balanced portfolio with a strong focus on North American equities and moderate risk exposure

Report created on Dec 28, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards a balanced fund, with 59% in the Fidelity Asset Manager 70%. This is complemented by significant investments in S&P 500 ETFs, making up about 31% of the portfolio. This composition suggests a focus on both growth and stability, aligning well with a balanced investment strategy. Compared to common benchmarks, this portfolio shows a higher concentration in managed funds and large-cap US equities. To enhance diversification, consider gradually increasing exposure to other asset classes or regions.

Growth Info

Historically, the portfolio has delivered a strong Compound Annual Growth Rate (CAGR) of 15.23%, indicating robust returns over the period analyzed. However, it has experienced a maximum drawdown of nearly 30%, highlighting potential vulnerability during market downturns. This performance surpasses typical benchmark indices, suggesting effective asset selection and management. It's important to note that past performance doesn't guarantee future results, so maintaining a diversified approach can help manage risks and sustain growth.

Projection Info

Using Monte Carlo simulations, the portfolio's potential future outcomes were projected, revealing a wide range of possibilities. With a median expected return of 321% and a 5th percentile of -92.86%, the projections highlight significant variability. The annualized return across simulations is 37.38%, suggesting optimistic growth potential. However, these projections rely on historical data and assumptions, which may not accurately predict future market conditions. Regularly reviewing and adjusting the portfolio can help align it with changing market dynamics and personal goals.

Asset classes Info

  • Stocks
    85%
  • Bonds
    16%

The portfolio is predominantly invested in stocks, comprising about 85% of the total allocation, with a smaller portion in bonds at 16%. This allocation is typical for a balanced portfolio, aiming to balance growth with income and stability. Compared to common benchmarks, the bond allocation is slightly lower, which could increase volatility. To further optimize risk management, consider increasing bond exposure or incorporating alternative asset classes, which can provide additional diversification benefits and potentially reduce overall portfolio risk.

Sectors Info

  • Technology
    25%
  • Financials
    15%
  • Industrials
    12%
  • Health Care
    10%
  • Consumer Discretionary
    9%
  • Telecommunications
    7%
  • Consumer Discretionary
    7%
  • Consumer Staples
    5%
  • Basic Materials
    3%
  • Energy
    3%
  • Real Estate
    2%
  • Utilities
    2%

Sector analysis reveals a significant concentration in technology (25%), followed by financial services and industrials. This allocation is generally in line with market benchmarks but is slightly tech-heavy. This could lead to higher volatility, especially during periods of tech sector correction. Diversifying into underrepresented sectors, such as utilities or consumer defensives, could provide more balanced growth and stability. Regularly reassessing sector weights can help ensure alignment with broader market trends and personal investment goals.

Regions Info

  • North America
    77%
  • Europe Developed
    13%
  • Asia Emerging
    4%
  • Japan
    3%
  • Asia Developed
    2%
  • Latin America
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is heavily skewed towards North America, making up 77% of the allocation. While this aligns with a focus on stable, developed markets, it limits exposure to international growth opportunities. Compared to common benchmarks, there's an underrepresentation in emerging markets and Europe. Increasing geographic diversification can help mitigate regional risks and capture growth in other parts of the world. Consider gradually adding exposure to emerging markets and other developed regions to achieve a more balanced global allocation.

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 can be optimized using the Efficient Frontier, which identifies the best possible risk-return ratio based on current assets. This optimization focuses on maximizing returns for a given level of risk or minimizing risk for a given return. By adjusting asset allocations, you can potentially achieve a more efficient portfolio. It's important to note that this optimization is based solely on existing assets and doesn't account for external factors or new investments. Regularly reviewing and rebalancing the portfolio can help maintain optimal efficiency.

Dividends Info

  • Fidelity® MSCI Consumer Discretionary Index ETF 0.50%
  • iShares U.S. Home Construction ETF 0.30%
  • Invesco QQQ Trust 0.40%
  • Ferrari NV 0.60%
  • Invesco S&P 500® Momentum ETF 0.30%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.26%

The portfolio offers a modest dividend yield of 0.26%, primarily from the Vanguard S&P 500 ETF. For investors seeking income, this yield may be considered low. Dividends can provide a steady income stream and contribute to total returns, especially in low-growth environments. If income generation is a priority, consider increasing exposure to dividend-focused funds or stocks. Balancing growth and income objectives can help achieve a more comprehensive investment strategy.

Ongoing product costs Info

  • FIDELITY ASSET MANAGER 70% FIDELITY ASSET MANAGER 70% 0.64%
  • Fidelity® MSCI Consumer Discretionary Index ETF 0.08%
  • iShares U.S. Home Construction ETF 0.40%
  • Invesco QQQ Trust 0.20%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.42%

With an overall Total Expense Ratio (TER) of 0.42%, the portfolio's costs are relatively low, supporting better long-term performance. Lower fees mean more of your returns stay in your pocket, compounding over time. This aligns well with best practices for cost management. Regularly reviewing fees and exploring lower-cost alternatives, such as index funds or ETFs, can further enhance net returns. Maintaining a focus on cost efficiency is essential for optimizing portfolio 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