A balanced portfolio with a tech and healthcare focus and moderate diversification

Report created on Aug 19, 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 is structured with a clear emphasis on technology and healthcare sectors, comprising 71% of the total allocation. The inclusion of major ETFs and blue-chip stocks like Berkshire Hathaway Inc, Alphabet Inc, and Microsoft Corporation signifies a blend of growth and value investing strategies. The portfolio's asset class is exclusively stocks, which, while potentially offering higher returns, lacks diversification across different asset types such as bonds or real estate. This setup aligns with a moderately diversified approach but leans heavily on specific sectors and large-cap companies.

Growth Info

The portfolio has shown impressive historical performance with a Compound Annual Growth Rate (CAGR) of 19.09%. The maximum drawdown of -17.98% indicates a relatively high resilience during market downturns, considering the portfolio's risk profile. The days that make up 90% of returns being only 12.0 highlights significant returns concentrated in short periods, suggesting volatility but also the potential for substantial gains. Comparing these metrics against benchmarks could provide further insight into performance relative to market averages.

Projection Info

Monte Carlo simulations project a wide range of potential outcomes, with the median simulation suggesting an over tenfold increase. This projection, while optimistic, underscores the portfolio's growth potential based on historical data. However, it's crucial to note that such simulations rely on past performance, which is not a guaranteed predictor of future results. The high percentage of simulations with positive returns reinforces the portfolio's strong standing but should be balanced with an understanding of inherent market risks.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, offering high growth potential but also increased volatility and risk, especially in the absence of fixed-income or other asset classes that could provide a cushion during market downturns. This allocation suits an investor with a higher risk tolerance and a long-term investment horizon, aiming for substantial capital appreciation. Diversifying into other asset classes could reduce volatility and improve the portfolio's resilience against market fluctuations.

Sectors Info

  • Technology
    48%
  • Health Care
    23%
  • Financials
    14%
  • Telecommunications
    5%
  • Industrials
    3%
  • Consumer Discretionary
    3%
  • Consumer Staples
    2%
  • Energy
    1%
  • Utilities
    1%
  • Real Estate
    1%

The heavy weighting towards technology and healthcare sectors positions the portfolio to benefit from growth in these industries. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or rapid technological shifts. While the financial services and communication services sectors provide some balance, a broader sectoral diversification could mitigate risks and capitalize on opportunities in other areas of the economy.

Regions Info

  • North America
    90%
  • Europe Developed
    5%
  • Asia Developed
    2%
  • Japan
    2%
  • Africa/Middle East
    1%

With 90% of assets allocated in North America, the portfolio has a strong domestic focus, particularly in the U.S. market. While this concentration may have contributed to the portfolio's strong historical performance, it also exposes investors to regional economic and political risks. Expanding geographic diversification, especially into emerging markets or developed European and Asian economies, could offer additional growth opportunities and risk mitigation.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    29%
  • Mid-cap
    16%
  • Small-cap
    7%
  • Micro-cap
    2%

The portfolio's emphasis on mega and big-cap stocks, comprising 75% of the allocation, suggests a focus on stability and established companies. This bias towards larger companies can offer resilience during market volatility but might limit exposure to the higher growth potential of mid and small-cap stocks. Considering a more balanced market cap distribution could enhance returns while maintaining an acceptable level of risk.

Redundant positions Info

  • Invesco PHLX Semiconductor ETF
    Xtrackers Semiconductor Select Equity ETF
    High correlation
  • iShares Core S&P 500 ETF
    SPDR® Portfolio S&P 500 ETF
    High correlation

The high correlation observed between certain ETFs, especially within the semiconductor and S&P 500 ETFs, indicates overlapping exposures that may not provide the intended diversification benefits. This redundancy could amplify risks during sector-specific downturns. Reducing overlap by consolidating similar positions or diversifying into less correlated assets could enhance the portfolio's risk-adjusted returns.

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.

Optimizing the portfolio using the Efficient Frontier concept could indicate potential for improving the risk-return ratio by adjusting asset allocations. Currently, the portfolio's heavy concentration in certain sectors and high correlation among assets suggests room for diversification improvements. Before optimization, addressing the identified overlaps and exploring opportunities for broader sectoral and geographic exposure could significantly enhance the portfolio's efficiency.

Dividends Info

  • Abbott Laboratories 1.80%
  • VanEck Biotech ETF 0.80%
  • Xtrackers Semiconductor Select Equity ETF 1.50%
  • Fidelity® MSCI Information Technology Index ETF 0.40%
  • Alphabet Inc Class A 0.40%
  • Amplify ETF Trust 0.10%
  • iShares Cybersecurity and Tech ETF 0.20%
  • iShares Core S&P 500 ETF 1.20%
  • Microsoft Corporation 0.50%
  • VanEck Pharmaceutical ETF 2.20%
  • Invesco PHLX Semiconductor ETF 0.60%
  • SPDR® Portfolio S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.93%

The portfolio's overall dividend yield of 0.93% contributes to total returns, particularly from holdings like Abbott Laboratories and VanEck Pharmaceutical ETF. While the focus seems to be more on capital appreciation than income generation, considering dividend growth stocks or higher-yielding ETFs could provide a steady income stream and potentially improve the portfolio's risk-return profile.

Ongoing product costs Info

  • VanEck Biotech ETF 0.35%
  • Xtrackers Semiconductor Select Equity ETF 0.15%
  • Fidelity® MSCI Information Technology Index ETF 0.08%
  • Amplify ETF Trust 0.60%
  • iShares Cybersecurity and Tech ETF 0.47%
  • iShares Core S&P 500 ETF 0.03%
  • VanEck Pharmaceutical ETF 0.36%
  • Invesco PHLX Semiconductor ETF 0.19%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • WisdomTree Cybersecurity Fund 0.45%
  • Weighted costs total (per year) 0.17%

The Total Expense Ratio (TER) of 0.17% is relatively low, which is commendable as it supports better net returns over the long term. Keeping costs low is crucial for investment efficiency, especially in a fully stocked portfolio where transaction and management fees can erode gains. Continual monitoring of fund expenses and considering cost-effective alternatives when rebalancing can further enhance 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