Balanced portfolio with a strong tilt towards technology and large-cap stocks

Report created on Jul 20, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio showcases a significant allocation towards equity, primarily through index funds and ETFs, complemented by individual stock holdings. The emphasis on Vanguard funds, notably in growth and small-cap sectors, indicates a strategy focused on capturing market-wide returns while seeking additional growth through smaller companies. The presence of a money market fund provides liquidity and a buffer against market volatility, albeit with a minor allocation. The blend of growth-oriented funds with specific large-cap stock picks suggests an attempt to balance potential high returns with the stability of established companies.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.85%, with a maximum drawdown of -25.60%. This performance, characterized by significant growth amidst manageable downturns, reflects the portfolio's balanced yet growth-focused strategy. The days contributing to 90% of returns being limited to 18 indicates that while the portfolio has experienced substantial growth, it has also been subject to short periods of significant volatility. Benchmarking this performance against a diversified market index could provide further insight into its relative success.

Projection Info

Monte Carlo simulations, which use historical data to project future performance under various scenarios, suggest a wide range of outcomes for this portfolio. With key percentiles indicating potential declines or significant growth, the average annualized return from all simulations stands at 14.72%. However, it's crucial to remember that these projections are speculative and depend heavily on past market behavior, which may not predict future trends accurately.

Asset classes Info

  • Stocks
    87%

The portfolio's heavy tilt towards stocks (87%) with a minimal cash position reflects a growth-oriented strategy with a higher risk profile. This asset class distribution aligns with the portfolio's balanced risk classification but leans towards growth. Diversification across asset classes could be improved by incorporating fixed income or alternative investments, which might offer better protection against market downturns while potentially reducing overall volatility.

Sectors Info

  • Technology
    35%
  • Health Care
    13%
  • Financials
    7%
  • Consumer Discretionary
    7%
  • Telecommunications
    7%
  • Industrials
    7%
  • Consumer Discretionary
    3%
  • Consumer Staples
    2%
  • Real Estate
    2%
  • Basic Materials
    2%
  • Energy
    1%
  • Utilities
    1%

With a 35% allocation in technology and significant investments in healthcare and financial services, the portfolio is positioned to benefit from growth in these sectors. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or technological disruptions. Balancing sector exposure by diversifying into underrepresented sectors could mitigate these risks while potentially uncovering new growth opportunities.

Regions Info

  • North America
    81%
  • Europe Developed
    3%
  • Asia Emerging
    1%
  • Japan
    1%
  • Asia Developed
    1%

The geographic allocation heavily favors North America (81%), with minimal exposure to international markets. This concentration benefits from the strength of the U.S. economy and its technology sector but limits potential gains from global diversification. Expanding into developed European markets or emerging markets could provide growth opportunities and reduce the portfolio's vulnerability to regional economic cycles.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    21%
  • Mid-cap
    13%
  • Small-cap
    10%
  • Micro-cap
    2%

The portfolio's focus on mega (41%) and big (21%) cap stocks underscores a preference for established, less volatile companies. While this may offer stability, the relatively lower allocation to medium, small, and micro-cap stocks could mean missed opportunities for higher growth. Rebalancing to include more small and medium-cap stocks might enhance returns, albeit with increased risk.

Redundant positions Info

  • VANGUARD SMALL-CAP INDEX FUND ADMIRAL SHARES
    VANGUARD 500 INDEX FUND ADMIRAL SHARES
    Vanguard Total Stock Market Index Fund Admiral Shares
    VANGUARD GROWTH INDEX FUND INSTITUTIONAL SHARES
    VANGUARD GROWTH INDEX FUND ADMIRAL SHARES
    Vanguard Growth Index Fund ETF Shares
    VANGUARD MID-CAP INDEX FUND ADMIRAL SHARES
    High correlation

The high correlation among the Vanguard funds, especially those focused on growth and the total stock market, suggests redundancy that may not contribute to diversification. This overlap, particularly among funds tracking similar indices, could be streamlined to optimize the portfolio's efficiency without sacrificing exposure to desired market segments.

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 portfolio's current composition and risk profile, optimization efforts should first address the high correlation among holdings. Reducing overlap by consolidating similar fund investments into a single, more efficient choice could improve diversification. Additionally, exploring opportunities to diversify by sector, geography, and market capitalization could further enhance the portfolio's risk-return profile, potentially leading to a more efficient allocation on the Efficient Frontier.

Dividends Info

  • Cognizant Technology Solutions Corp Class A 1.60%
  • International Business Machines 2.30%
  • UnitedHealth Group Incorporated 3.00%
  • VANGUARD 500 INDEX FUND ADMIRAL SHARES 0.90%
  • VANGUARD GROWTH INDEX FUND ADMIRAL SHARES 0.30%
  • VANGUARD GROWTH INDEX FUND INSTITUTIONAL SHARES 0.30%
  • VANGUARD MID-CAP INDEX FUND ADMIRAL SHARES 1.10%
  • Vanguard Federal Money Market Fund Investor Shares 4.20%
  • VANGUARD SMALL-CAP INDEX FUND ADMIRAL SHARES 1.00%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 2.10%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.90%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Weighted yield (per year) 1.46%

The portfolio's dividend yield stands at an average of 1.46%, contributed by both individual stocks and index funds. While not the primary focus, dividends offer a steady income stream and a potential buffer during market downturns. Re-evaluating holdings for dividend growth potential could enhance income without significantly altering the portfolio's risk profile.

Ongoing product costs Info

  • VANGUARD 500 INDEX FUND ADMIRAL SHARES 0.04%
  • VANGUARD GROWTH INDEX FUND ADMIRAL SHARES 0.05%
  • VANGUARD GROWTH INDEX FUND INSTITUTIONAL SHARES 0.04%
  • VANGUARD MID-CAP INDEX FUND ADMIRAL SHARES 0.05%
  • VANGUARD SMALL-CAP INDEX FUND ADMIRAL SHARES 0.05%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 0.09%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.04%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.03%

The portfolio benefits from low-cost Vanguard funds, with a Total Expense Ratio (TER) averaging 0.03%, underscoring the cost-efficiency of index fund investing. This low-cost approach enhances net returns over time, a critical factor in long-term investment success. Continual monitoring of fund costs and performance is essential to maintaining this advantage.

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