Balanced and broadly diversified portfolio with a strong focus on technology and dividend yield

Report created on Jul 23, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is well-structured, comprising 100% equities across five ETFs, with a significant emphasis on the US market. The Vanguard S&P 500 ETF and Invesco QQQ Trust, making up half of the portfolio, indicate a strong tilt towards large-cap and technology stocks. The inclusion of Schwab U.S. Dividend Equity, Vanguard FTSE Developed Markets, and Vanguard FTSE Emerging Markets ETFs enhances diversification across geographies and sectors. This blend reflects a balanced approach, aiming for growth through market leaders while seeking income through dividends and international exposure.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 13.25%, with a maximum drawdown of -31.79%. These figures suggest a robust performance, likely outpacing many benchmarks in similar risk categories. The days contributing to 90% of returns being limited to 31 indicates that the portfolio's gains are concentrated in specific periods, emphasizing the importance of staying invested through market cycles for optimal growth.

Projection Info

Monte Carlo simulations, which use historical data to forecast future performance, suggest a wide range of outcomes for this portfolio. With 978 out of 1,000 simulations showing positive returns, the median projection indicates a significant potential for growth (360.3%). However, the variability between the 5th percentile (44.6%) and the 67th percentile (546.2%) underscores the inherent uncertainties in market movements. These projections are helpful for setting realistic expectations, though they cannot guarantee future results.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation leans heavily towards stocks (99%), with a minimal cash reserve (1%). This allocation is appropriate for investors with a balanced risk profile, seeking growth through equity investments while maintaining a small buffer of liquidity. The absence of bonds or alternative investments limits diversification across asset classes, potentially increasing volatility but also allowing for higher growth prospects in a bullish market.

Sectors Info

  • Technology
    27%
  • Financials
    13%
  • Consumer Discretionary
    11%
  • Industrials
    9%
  • Health Care
    9%
  • Telecommunications
    9%
  • Consumer Staples
    8%
  • Energy
    6%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation shows a significant concentration in technology (27%), reflecting the portfolio's growth orientation. Financial services, consumer cyclicals, and healthcare also have notable allocations, contributing to a diversified sector exposure. However, the heavy weighting in technology, while beneficial during tech bull markets, may increase volatility during sector-specific downturns. Balancing sector exposures can mitigate risks while maintaining growth potential.

Regions Info

  • North America
    71%
  • Asia Emerging
    9%
  • Europe Developed
    9%
  • Asia Developed
    4%
  • Japan
    3%
  • Africa/Middle East
    2%
  • Latin America
    1%
  • Australasia
    1%

Geographically, the portfolio is predominantly invested in North America (71%), with meaningful allocations to emerging Asia (9%) and developed Europe (9%). This distribution suggests a well-considered blend of stability from developed markets and growth potential from emerging markets. However, the heavy tilt towards the US could expose the portfolio to region-specific risks, and investors may benefit from a more diversified global exposure.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    38%
  • Mid-cap
    19%
  • Small-cap
    3%

Market capitalization exposure is balanced, with a focus on mega (39%) and big (38%) caps, complemented by medium (19%), small (3%), and micro (0%) caps. This skew towards larger companies is consistent with the portfolio's emphasis on stability and growth, as larger companies often have more established business models and global footprints. However, including more small and micro-cap investments could enhance potential for high growth, 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.

Considering the Efficient Frontier, the portfolio appears well-positioned for optimizing the risk-return ratio based on current allocations. However, there's always room for improvement, especially in enhancing diversification across asset classes and reducing correlation risks. Rebalancing to include assets with lower correlations or different risk-return profiles could further optimize the portfolio's position on the Efficient Frontier, potentially offering better returns for the same or lower level of risk.

Dividends Info

  • Invesco QQQ Trust 0.40%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.70%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 2.01%

Dividend yields across the ETFs contribute to the portfolio's total yield of 2.01%, with the Schwab U.S. Dividend Equity ETF offering the highest individual yield (3.80%). This income stream can provide a cushion during market volatility and contribute to total returns over time. For investors prioritizing income, focusing on higher-yielding assets while balancing growth prospects could enhance the portfolio's income component.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.08%

The portfolio's total expense ratio (TER) of 0.08% is impressively low, maximizing the potential for net returns. Low costs are crucial for long-term growth, as even small differences in fees can significantly impact compounded returns. The portfolio's cost efficiency is a strong point, reflecting well-chosen investments that don't erode returns through high fees.

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