Balanced portfolio with a strong focus on North American equities and a touch of cryptocurrency

Report created on Jul 6, 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 predominantly invested in two major ETFs focusing on broad market US equities and the S&P 500, alongside a smaller allocation to a Bitcoin ETF. The heavy weighting towards large-cap stocks in North America, with a minor but significant diversification into cryptocurrency, suggests a strategy that balances traditional equity growth with a speculative tilt towards digital assets. This composition reflects a moderately diversified approach, leveraging the stability and growth potential of established markets while seeking additional growth from the volatile crypto sector.

Growth Info

With a historical Compound Annual Growth Rate (CAGR) of 13.85% and a maximum drawdown of -22.15%, the portfolio has demonstrated robust growth with a manageable level of risk. The days contributing to 90% of returns being limited to 21 suggests that the portfolio's performance has been significantly impacted by a few strong market days, a common characteristic in equity-heavy portfolios. This performance, while impressive, underscores the importance of staying invested through market volatility to capture such days.

Projection Info

The Monte Carlo simulation, projecting a wide range of outcomes based on historical data, indicates a median growth potential of 555% with an annualized return of 21.15% across all simulations. However, it's crucial to remember that these projections are based on past performance, which is not a reliable indicator of future results. The simulation's wide outcome range, from a 5th percentile of -14.3% to a 67th percentile of over 1000%, highlights the inherent uncertainty in market movements, especially with cryptocurrency's volatility in the mix.

Asset classes Info

  • US Equity
    63%
  • Stocks
    14%

The asset class distribution, with a dominant focus on US Equity and a smaller allocation to Equity (presumably non-US), alongside Bitcoin, offers a concentrated but somewhat diversified exposure. This allocation aligns with the portfolio's balanced risk profile but leans heavily on the performance of the US market. Diversification beyond these primary areas, especially into international equities or alternative asset classes, could enhance risk-adjusted returns.

Sectors Info

  • Technology
    24%
  • Financials
    17%
  • Industrials
    10%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    5%
  • Basic Materials
    4%
  • Utilities
    3%
  • Real Estate
    2%

The sector allocation is heavily weighted towards technology and financial services, which are sectors known for their growth potential but also for their volatility. The presence of industrials, consumer cyclicals, and healthcare provides a good balance, contributing to the portfolio's resilience against sector-specific downturns. However, the significant weight in technology and financial services sectors may increase sensitivity to market fluctuations and regulatory changes affecting these industries.

Regions Info

  • North America
    77%
  • Europe Developed
    9%
  • Japan
    3%
  • Asia Emerging
    1%
  • Asia Developed
    1%
  • Australasia
    1%

Geographically, the portfolio is heavily North American-centric, with 77% allocated to this region. While this focus capitalizes on the growth and stability of developed markets, the minimal exposure to emerging markets and other developed regions may limit diversification benefits and exposure to global growth opportunities. Increasing allocations to underrepresented regions could offer broader market exposure and potential for enhanced portfolio diversification.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    31%
  • Mid-cap
    17%
  • Small-cap
    3%

The market capitalization breakdown shows a strong preference for mega and big-cap stocks, which typically offer stability and consistent returns. However, the limited exposure to medium, small, and micro-cap stocks means potentially missing out on the higher growth rates these smaller companies can offer. Balancing this allocation could introduce more growth potential, albeit with increased 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.

Considering the Efficient Frontier, the current portfolio may not be fully optimized for the best possible risk-return ratio due to its heavy reliance on US equities and limited diversification across asset classes and geographies. Exploring a broader range of assets and reallocating to achieve a more balanced risk-return profile could enhance the portfolio's efficiency. However, this optimization should align with the investor's risk tolerance and investment goals.

Dividends Info

  • Vanguard S&P 500 Index ETF 0.80%
  • iShares Core Equity Portfolio 1.30%
  • Weighted yield (per year) 1.03%

The dividend yields from the Vanguard S&P 500 Index ETF and the iShares Core Equity Portfolio contribute to the portfolio's total yield of 1.03%. While not the primary focus, these dividends provide a steady income stream, enhancing overall returns. For investors prioritizing income, exploring additional high-dividend-yielding assets could further bolster this aspect of the portfolio.

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