Balanced Growth Portfolio with Strong Tech Focus and Diversification Across Multiple Sectors and Regions

Report created on Dec 4, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is composed of four ETFs, with a strong emphasis on U.S. large-cap growth stocks, making up 50% of the total allocation. The rest is spread across nuclear energy, semiconductors, and international stocks, providing a broad diversification. This mix reflects a growth-oriented strategy, with a significant portion allocated to technology and energy sectors. While the portfolio exhibits a solid diversification, it could benefit from a more balanced approach to reduce potential volatility. A more diversified mix could help in cushioning against market downturns and provide more stability.

Growth Info

Historically, the portfolio has shown impressive performance with a CAGR of 16.74%, indicating strong growth over time. However, the maximum drawdown of -31.82% suggests that the portfolio has faced significant downturns, which is typical for growth-oriented investments. This performance highlights the potential for high returns but also underscores the importance of risk management. While past performance is not indicative of future results, maintaining a balance between growth and stability could enhance the portfolio's resilience to market fluctuations.

Projection Info

Using a Monte Carlo simulation, which runs numerous scenarios to forecast potential outcomes, the portfolio shows promising forward projections. Assuming a hypothetical initial investment, the simulation predicts a 15.26% annualized return, with a broad range of possible outcomes. The 50th percentile projection suggests a 428.84% increase, indicating potential for substantial growth. However, the variability in outcomes highlights the inherent uncertainty in investing. To mitigate risks, consider maintaining a diversified portfolio and periodically reassessing asset allocation to align with changing market conditions and personal goals.

Asset classes Info

  • Stocks
    100%

The portfolio is heavily weighted towards stocks, with 99.64% of assets in equities, reflecting a high-risk, high-reward strategy. This allocation is suitable for investors seeking capital appreciation, but it may expose the portfolio to significant volatility. To reduce risk, consider incorporating other asset classes such as bonds or cash equivalents, which can provide stability and income during market downturns. A more balanced asset allocation could help in achieving a smoother ride through market cycles while still capturing growth opportunities.

Sectors Info

  • Technology
    46%
  • Energy
    10%
  • Utilities
    9%
  • Consumer Discretionary
    7%
  • Telecommunications
    7%
  • Health Care
    6%
  • Industrials
    6%
  • Financials
    6%
  • Consumer Staples
    2%
  • Basic Materials
    2%
  • Real Estate
    1%

The portfolio is predominantly invested in the technology sector, which accounts for 45.85% of the allocation. While this sector has historically driven growth, overexposure may increase vulnerability to sector-specific downturns. Energy, utilities, and consumer cyclicals also hold significant positions, adding some diversification. To mitigate sector risk, consider spreading investments across a broader range of industries. This can help in reducing the impact of sector-specific volatility and enhance the portfolio's resilience to economic shifts.

Regions Info

  • North America
    82%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    2%
  • Japan
    2%
  • Europe Emerging
    1%

Geographically, the portfolio is heavily concentrated in North America, with 81.75% of assets allocated to this region. While this reflects a strong focus on the U.S. market, it may limit exposure to growth opportunities in other parts of the world. Europe and Asia have minor allocations, offering some international diversification. To enhance geographic diversity, consider increasing exposure to emerging markets and other developed regions. This can provide access to different economic cycles and growth drivers, potentially boosting overall 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.

The portfolio optimization chart suggests potential for improvement by adjusting the asset allocation to align more closely with the efficient frontier. This involves balancing risk and return to achieve the most efficient portfolio. For those seeking a riskier approach, consider increasing exposure to high-growth sectors, while a more conservative strategy could involve diversifying into bonds or cash equivalents. Before optimizing, ensure the portfolio aligns with personal risk tolerance and investment goals. Regularly reviewing and rebalancing can help maintain the desired risk-return profile over time.

Dividends Info

  • VanEck Uranium+Nuclear Energy ETF 3.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Invesco PHLX Semiconductor ETF 0.70%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.33%

The portfolio's dividend yield stands at 1.33%, with the VanEck Uranium+Nuclear Energy ETF contributing the highest yield at 3.5%. While dividends provide a steady income stream, the overall yield is relatively low due to the focus on growth-oriented ETFs. For investors seeking income, consider incorporating higher-yielding assets or dividend-focused funds. This can provide a more balanced approach, combining capital appreciation with income generation, which may be beneficial for long-term wealth accumulation and stability.

Ongoing product costs Info

  • VanEck Uranium+Nuclear Energy ETF 0.61%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Invesco PHLX Semiconductor ETF 0.19%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.19%

The total expense ratio (TER) of the portfolio is 0.19%, which is quite competitive. The Schwab U.S. Large-Cap Growth ETF offers the lowest cost at 0.04%, while the VanEck Uranium+Nuclear Energy ETF is the highest at 0.61%. Keeping costs low is crucial as it directly impacts net returns. Regularly reviewing and optimizing the portfolio's cost structure can enhance overall performance. Consider evaluating the cost-benefit ratio of each holding and explore lower-cost alternatives if they align with investment goals and risk tolerance.

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