A growth tilted Canadian equity portfolio with strong North American focus and moderate overall risk

Report created on Jan 20, 2026

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is built almost entirely from broad equity ETFs, with half in Canadian stocks and the rest split between a global all‑equity fund and a US large‑cap index. That creates a clear tilt toward domestic and US markets while still maintaining some global reach through the all‑equity holding. Structure matters because it drives how the portfolio reacts to different markets rising or falling. Here the mix leans more growth than the “balanced” label suggests, since there’s effectively no bond exposure. Anyone using this setup could think about whether that equity-heavy stance fits their need for stability, especially in sharp downturns or near-term cash needs.

Growth Info

Historically, this mix has delivered a very strong compound annual growth rate (CAGR) of about 15%. CAGR is like checking your average speed over a long road trip: it smooths the ups and downs to show typical yearly growth on an initial lump sum. Beating many common benchmarks over time is a good sign that the growth tilt has been rewarded. The flip side is a sizeable maximum drawdown of around –33%, meaning a $100k hypothetical investment could have dropped near $67k at the worst point. This level of decline is normal for equity‑heavy portfolios but can feel rough; comfort with those swings is key.

Projection Info

The Monte Carlo analysis, which runs 1,000 “what if” return paths based on historical patterns, shows a wide range of possible futures. Monte Carlo is like rolling dice thousands of times using past returns and volatility to see many alternate timelines. A median outcome around 691% growth and a low-end (5th percentile) around 166% is attractive, suggesting a strong growth potential with positive results in most scenarios. Still, these are simulations, not promises: they assume that future markets behave broadly like the past. It’s useful for setting expectations, but real-life outcomes could be better or worse, especially if market regimes change.

Asset classes Info

  • Stocks
    57%
  • US Equity
    37%

Despite a “balanced” risk label, this portfolio is almost pure equity, with no meaningful allocation to bonds or cash. Equities historically offer higher long‑term returns but also deeper short‑term swings compared with fixed income. This equity concentration explains both the strong historic growth and the sizeable drawdown. Many broad benchmarks labeled “balanced” hold a mix of stocks and bonds, often around 60/40 or 70/30, so this setup is more aggressive than those norms. The upside is strong long‑run growth potential; the trade‑off is that there’s little built-in cushion during market stress, so short‑term volatility will likely remain noticeable.

Sectors Info

  • Financials
    26%
  • Technology
    20%
  • Basic Materials
    11%
  • Energy
    10%
  • Industrials
    10%
  • Consumer Discretionary
    7%
  • Telecommunications
    5%
  • Health Care
    4%
  • Consumer Staples
    4%
  • Utilities
    3%
  • Real Estate
    2%

Sector exposure is fairly diversified across major parts of the economy, with notable tilts toward financials and technology. Financial services around a quarter of the portfolio and technology at about one‑fifth create two main “engines” for returns. This structure lines up reasonably well with many broad equity benchmarks, which is a positive sign for diversification. However, heavy exposure to financials can feel more stressful during credit or housing scares, while tech-heavy slices can swing more during rate hikes or shifts in growth expectations. Keeping an eye on whether these sector tilts are intentional can help manage comfort with future volatility.

Regions Info

  • North America
    94%
  • Europe Developed
    3%
  • Asia Emerging
    1%
  • Japan
    1%
  • Asia Developed
    1%

Geographically, the portfolio is dominated by North America at roughly 94%, with only a small slice in Europe and Asia. This North American bias, especially the home-country tilt to Canada plus US exposure, is very common among Canadian investors and has worked well over the last decade. It also means results are tightly linked to the fortunes of those markets. Compared with global equity benchmarks, which usually have more weight in Europe and Asia, this portfolio is underweight the rest of the world. That can boost familiarity and simplicity but may miss some diversification benefits if other regions lead in future decades.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    32%
  • Mid-cap
    18%
  • Small-cap
    3%

Market cap exposure is skewed toward mega and large companies, with nearly 80% in mega and big caps and only a modest allocation to mid and small caps. Large firms tend to be more stable and widely followed, which can reduce company-specific risk compared with concentrated small-cap bets. This profile is very much in line with major equity benchmarks, so it’s a solid, mainstream structure. The relatively small small‑cap slice means less exposure to the sometimes higher long‑term growth (and higher volatility) associated with tiny companies. Overall, this tilt supports smoother rides than a portfolio overloaded with smaller, more volatile names.

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.

On a risk‑return basis, this portfolio sits in a growthy spot of the Efficient Frontier for equity-heavy mixes. The Efficient Frontier is a way of mapping combinations of available assets that offer the best possible return for each level of volatility. Here, with only a few broad, highly correlated equity funds and no stabilizing assets, there’s limited room to shift along that curve using current ingredients alone. Within those constraints, the setup already looks quite effective, with strong realized and simulated returns. Any move toward more “efficiency” would likely involve adjusting the mix to add some lower‑volatility components rather than just shuffling between existing funds.

Dividends Info

  • Vanguard FTSE Canada All Cap 0.50%
  • Vanguard S&P 500 Index ETF 0.20%
  • Weighted yield (per year) 0.30%

The dividend yield across these ETFs is modest at around 0.3%, reflecting a growth-oriented, broad-market equity mix. Dividends are cash payments from companies and can be an important income source, especially for those funding living expenses. Here, lower yield means most of the expected return comes from price appreciation rather than regular cash flow. That aligns well with a growth focus and long-term wealth building, especially in tax-advantaged accounts. For someone targeting ongoing income, this structure might feel light on payouts, but for accumulation phases, reinvesting even small dividends can meaningfully boost long-run compounding over many years.

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