A highly diversified balanced portfolio with strong growth potential and moderate risk exposure

Report created on Mar 6, 2025

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 composed of a mix of equity ETFs, a gold ETF, and a treasury bond ETF. This allocation aims to balance growth and stability, with 88% in stocks and 12% in other assets. Compared to a typical balanced benchmark, this portfolio leans more towards equities, offering the potential for higher returns but also increased volatility. To maintain balance, consider periodically reviewing the allocation to ensure it aligns with your risk tolerance and investment goals.

Growth Info

Historically, the portfolio has performed well, achieving a CAGR of 11.79%. This growth rate indicates solid past performance, although it's essential to remember that past performance doesn't guarantee future results. The max drawdown of -15.50% highlights the portfolio's resilience during downturns compared to more aggressive portfolios. Regularly reviewing performance against benchmarks can help ensure the portfolio remains aligned with your financial objectives.

Projection Info

Forward projections using Monte Carlo simulations suggest a wide range of potential outcomes, with a median expected return of 314.9%. Monte Carlo analysis uses historical data to simulate future performance, providing a probabilistic view of potential returns. While this offers valuable insights, it's crucial to remember that these are hypothetical scenarios and not guaranteed results. Regularly reassessing projections can help adapt the portfolio to changing market conditions.

Asset classes Info

  • Stocks
    88%
  • Other
    5%
  • Cash
    3%
  • Bonds
    2%
  • No data
    2%

The portfolio's asset allocation is predominantly in stocks, with minor allocations to gold and bonds. This composition supports diversification but may expose the portfolio to equity market volatility. Compared to a typical balanced benchmark, the portfolio's equity weighting is higher, offering growth potential but also increased risk. Diversifying further into other asset classes, such as real estate or alternative investments, could enhance stability.

Sectors Info

  • Technology
    25%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Industrials
    9%
  • Health Care
    8%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation is diverse, with technology and financial services being the most significant components. This distribution aligns well with common benchmarks, suggesting a balanced approach to sector exposure. However, tech-heavy portfolios can experience higher volatility, especially during interest rate hikes. Regularly reviewing sector trends and adjusting allocations can help manage risk and capitalize on emerging opportunities.

Regions Info

  • North America
    71%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America, with 71% exposure, which aligns with many benchmarks. While this offers stability, it may limit exposure to growth opportunities in emerging markets. A more balanced geographic allocation could enhance diversification and reduce potential regional risks. Consider increasing exposure to underrepresented regions to capture global growth trends.

Market capitalization Info

  • Mega-cap
    35%
  • Large-cap
    26%
  • Mid-cap
    14%
  • Small-cap
    8%
  • Micro-cap
    5%
  • No data
    5%

The portfolio is well-diversified across market capitalizations, with a focus on mega and big-cap stocks. This distribution aligns with many benchmarks, providing stability and growth potential. However, smaller-cap stocks can offer higher growth opportunities but also come with increased risk. Regularly reviewing market cap exposure can ensure the portfolio remains aligned with your risk tolerance and growth objectives.

Redundant positions Info

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

The portfolio contains highly correlated assets, particularly between the Vanguard Total Stock Market Index and SPDR® Portfolio S&P 500 ETFs. High correlation means these assets move similarly, limiting diversification benefits. Reducing overlap by diversifying into less correlated assets can enhance the portfolio's risk management. Consider reallocating to assets with different market behaviors to improve 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.

The portfolio could be optimized using the Efficient Frontier, which identifies the best risk-return ratio. Currently, highly correlated assets may not provide diversification benefits. By reallocating within the current asset pool, the portfolio's efficiency could improve. This approach focuses on maximizing returns for a given risk level, ensuring optimal performance. Regularly reviewing asset allocation can help maintain efficiency.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.80%
  • JPMorgan Nasdaq Equity Premium Income ETF 10.30%
  • iShares Short Treasury Bond ETF 4.90%
  • SPDR® Portfolio S&P 500 ETF 1.30%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 3.10%
  • Weighted yield (per year) 2.72%

The portfolio boasts a total dividend yield of 2.72%, with the JPMorgan Nasdaq Equity Premium Income ETF contributing significantly. Dividends provide a steady income stream, which can be reinvested to compound growth. For investors seeking income, maintaining a focus on dividend-paying assets can enhance returns. Regularly reviewing dividend yields and adjusting allocations can optimize income generation.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • SPDR® Gold Shares 0.40%
  • JPMorgan Nasdaq Equity Premium Income ETF 0.35%
  • iShares Short Treasury Bond ETF 0.15%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.12%

The portfolio's total expense ratio (TER) is 0.12%, which is impressively low and supports better long-term performance. Low costs mean more of your investment returns remain in your pocket, compounding over time. This cost efficiency aligns with best practices, ensuring the portfolio remains competitive. Regularly reviewing and minimizing costs can further enhance net returns.

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