A growth focused North America heavy portfolio with strong past returns and moderate diversification
Report created on Aug 23, 2024Risk profile
4/7
Diversification profile
3/5
Positions
-
VF Vanguard S&P 500 Index ETF
VFV - CA92205Y1051 62.58% -
XE iShares Core Equity Portfolio
XEQT - CA46436D1087 37.42%
This portfolio is very simple and very equity heavy, with just two broad ETFs and minimal cash. One ETF tracking a large US index dominates, while the other broad equity ETF fills in extra exposure, leading to a solid core holding structure. Simplicity like this keeps things easy to understand and manage, and often avoids unnecessary complexity. However, it can also hide some concentration risks, such as being tied closely to one major market. It could be helpful to check whether the overall mix truly matches the intended balance profile, and whether adding a small allocation to more defensive assets would smooth out the ride in tougher markets.
Growth
Using a hypothetical starting amount of 10,000, a 16.22% CAGR (Compound Annual Growth Rate) would have grown it to roughly 45,000 over ten years, showing very strong historic returns. CAGR is like the average speed of a car over a long trip, smoothing out bumps along the way. The max drawdown of –28.31% means at one point the portfolio was down almost 30% from a peak, which is a meaningful but not extreme drop for a growth‑tilted mix. This aligns with a balanced‑to‑growth risk profile. It’s important to remember that these results reflect a strong period for markets and may not repeat.
Projection
The Monte Carlo analysis runs 1,000 simulated futures based on past volatility and returns, a bit like rolling many alternate timelines to see the range of outcomes. The median outcome of about 710% means that in half the simulations, the portfolio more than septupled, while even the 5th percentile still showed a decent gain. The annualized return across simulations of 16.95% lines up with history, suggesting consistency in the modeling. Still, Monte Carlo relies heavily on past patterns; if future markets behave differently, actual results could fall outside this range. Treat these projections as a rough roadmap, not a promise.
Asset classes
- US Equity 78%
- Stocks 10%
- Cash 1%
The asset class split is overwhelmingly in equities, with around 88%+ in stocks, a small cash slice, and minimal “other.” For a “balanced” label, this is quite growth‑oriented and closer to what many would call a growth or even aggressive allocation. This equity tilt has helped returns in strong markets and aligns with the excellent long‑term performance. However, it also means bigger swings during downturns and less ballast from traditionally steadier assets. Someone wanting smoother performance might consider a bit more exposure to stabilizing asset types, while someone comfortable with volatility might be happy to maintain the current growth bias.
Sectors
- Technology 30%
- Financials 16%
- Consumer Discretionary 10%
- Telecommunications 9%
- Industrials 9%
- Health Care 8%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 4%
- Utilities 3%
- Real Estate 2%
Sector exposure is broad, covering all major areas, which is a big positive for diversification. Technology sits at about 30%, clearly the largest slice, followed by financials, consumer cyclicals, communication services, and industrials. This tech tilt has likely boosted returns in recent years but can also mean more sensitivity to interest rates and sentiment around innovation and growth companies. Defensive areas like utilities, consumer staples, and healthcare are present but smaller. This sector mix is quite similar to common large‑cap benchmarks, which is reassuring. Still, it’s worth deciding whether the tech and growth lean is intentional or just a by‑product of broad indexing.
Regions
- North America 89%
- Europe Developed 6%
- Japan 2%
- Asia Developed 1%
- Asia Emerging 1%
- Australasia 1%
Geographically, the portfolio is heavily skewed to North America at about 89%, with modest exposure to developed Europe and tiny slices in Japan and other developed Asia. Emerging markets and regions like Latin America or Africa are essentially absent. This North America tilt has worked very well over the past decade, as that market has outperformed many others. However, it also means outcomes are closely tied to one region’s economy, currency, and policy. A bit more global spread could reduce the impact of any single region’s slowdown, but adding that often comes with higher volatility and sometimes lower recent performance compared to North America.
Market capitalization
- Mega-cap 44%
- Large-cap 33%
- Mid-cap 18%
- Small-cap 3%
The size mix is dominated by mega and big companies, together making up over three‑quarters of the portfolio, with some mid‑cap exposure and very little in small caps. Large firms often bring more stability, deeper liquidity, and lower business risk than small companies, which helps limit extreme swings. Smaller companies, though, can add an extra growth kicker and diversify income sources. This profile is quite similar to common broad equity benchmarks, which is a positive sign of alignment with global standards. If a stronger tilt toward long‑term growth is desired, slightly more exposure to mid and small caps could be worth exploring.
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.
From a risk‑return angle, this portfolio sits on the higher‑return, higher‑volatility side of what many would call “balanced.” The Efficient Frontier is a concept that maps the best possible risk‑return combinations using the same building blocks, showing where small shifts could improve the ratio of return to risk. Within just these two ETFs, there may be limited room for major efficiency gains, but modest adjustments between the funds could still fine‑tune volatility and expected return. It’s also worth noting that “efficient” doesn’t mean “perfect” for every goal; someone may still choose a less efficient mix to prioritize stability, income, or other preferences.
Dividends
- Vanguard S&P 500 Index ETF 0.50%
- iShares Core Equity Portfolio 0.90%
- Weighted yield (per year) 0.65%
The portfolio’s overall dividend yield of about 0.65% is quite low, which is typical for a growth‑oriented equity mix focused on large companies that reinvest profits. Dividends are the cash payments companies make to shareholders and can act like a small “paycheck” from the portfolio. Here, most of the expected return clearly comes from price appreciation rather than income. This structure suits investors who care more about growing wealth than living off regular payments. Those seeking higher income might explore raising the share of income‑oriented holdings, understanding that this can change the risk and sector profile and may impact long‑term growth.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
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