Balanced portfolio with a strong focus on US equities and moderate international exposure

Report created on Jul 28, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is predominantly composed of equities, with a 90% allocation towards stocks and 10% in bonds, showcasing a tilt towards growth with a balanced risk profile. The majority stake in the Schwab U.S. Broad Market ETF and the Schwab International Equity ETF indicates a broad market approach, while the inclusion of specific ETFs for dividends and large-cap growth adds a strategic layer aimed at enhancing returns and diversification within the equity segment.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 11.19%, with a maximum drawdown of -31.92%. This performance, characterized by significant growth potential tempered by moderate drawdowns, aligns well with the balanced risk classification of the portfolio. The days contributing most to returns highlight the impact of short-term volatility and the importance of staying invested over the long term.

Projection Info

The Monte Carlo simulation provides a forward-looking projection based on historical data, suggesting a wide range of potential outcomes. With 981 out of 1,000 simulations showing positive returns and a median projected increase of 292.2%, these results underscore the portfolio's solid growth prospects. However, it's crucial to remember that such simulations are hypothetical and cannot predict future market movements with certainty.

Asset classes Info

  • Stocks
    90%
  • Bonds
    10%

The asset class distribution, with a heavy emphasis on stocks, is suitable for investors seeking growth. The 10% allocation to bonds offers a cushion against stock market volatility, aiding in risk management. This blend supports a balanced approach, aiming to capture equity market gains while mitigating risks during downturns.

Sectors Info

  • Technology
    23%
  • Financials
    15%
  • Industrials
    11%
  • Consumer Discretionary
    9%
  • Health Care
    9%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation reveals a diversified yet focused approach, with significant investments in technology and financial services. This sector distribution reflects a modern portfolio, capitalizing on growth sectors while maintaining exposure to traditional industries. However, the concentration in technology might increase volatility, necessitating periodic reviews to ensure alignment with the investor's risk tolerance.

Regions Info

  • North America
    63%
  • Europe Developed
    16%
  • Japan
    6%
  • Asia Developed
    2%
  • Australasia
    2%

Geographic exposure is heavily weighted towards North America, complemented by meaningful allocations to developed markets in Europe and Japan. This distribution suggests a strategy that balances domestic familiarity and growth prospects with the diversification benefits of international exposure. Expanding into emerging markets could offer additional diversification and growth opportunities.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    30%
  • Mid-cap
    16%
  • Small-cap
    4%
  • Micro-cap
    1%

The market capitalization breakdown, favoring mega and big-cap companies, underscores a preference for stability and established performance. While this can provide resilience during market fluctuations, incorporating a broader mix of mid to small-cap stocks might enhance growth potential and diversification.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Schwab U.S. Broad Market ETF
    High correlation

The high correlation between the Schwab U.S. Large-Cap Growth ETF and the Schwab U.S. Broad Market ETF indicates overlapping investments that may not contribute significantly to diversification. Reducing exposure to highly correlated assets can enhance portfolio efficiency by reducing redundancy and potentially lowering volatility.

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 involves addressing the redundancy identified in highly correlated assets. By reallocating these funds into less correlated, potentially underrepresented asset classes or sectors, the portfolio could achieve a more efficient risk-return profile, aligning closer to the Efficient Frontier and enhancing diversification benefits.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Schwab U.S. Broad Market ETF 1.20%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab International Equity ETF 2.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Weighted yield (per year) 1.94%

Dividend yields across various components contribute to the portfolio's total yield of 1.94%, offering a balance between growth and income. This diversified approach to dividends, from higher-yielding bonds to lower-yielding growth stocks, supports the portfolio's balanced risk profile, providing regular income streams while pursuing capital appreciation.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Schwab U.S. Broad Market ETF 0.03%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab International Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Weighted costs total (per year) 0.04%

The portfolio's overall expense ratio is impressively low, averaging 0.04%, which is beneficial for long-term growth as lower costs translate directly into higher net returns. This cost efficiency is a strong aspect of the portfolio, ensuring that more of the investment's growth is retained by the investor.

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