A balanced portfolio with a strong tilt towards international equities and low costs

Report created on Dec 8, 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 predominantly invests in international equities, with an 80% allocation to the Schwab International Equity ETF and a 20% allocation to the Schwab U.S. Broad Market ETF. Such a structure demonstrates a strategic decision to emphasize global diversification over domestic markets. The asset class composition is solely focused on stocks, with no presence of bonds, cash, or alternative investments, which suggests a growth-oriented approach albeit with a balanced risk profile.

Growth Info

Historically, this portfolio has exhibited a Compound Annual Growth Rate (CAGR) of 10.98%, with a maximum drawdown of -34.48%. This performance indicates a relatively high return potential, albeit with significant volatility as evidenced by the drawdown. The days contributing to 90% of returns being limited to 26 suggests that the portfolio's performance is heavily reliant on specific high-performing periods, which underscores the importance of staying invested over the long term to capture these gains.

Projection Info

Using Monte Carlo simulations, which forecast future performance by analyzing a range of possible outcomes based on historical data, this portfolio shows a wide variance in potential future returns. The median projection indicates a 382.2% return, with a 13.30% annualized return across all simulations. However, it's crucial to remember that these projections, while useful for planning, are speculative and depend on historical market conditions repeating in the future.

Asset classes Info

  • Stocks
    99%

The portfolio is entirely allocated to stocks, eschewing bonds, cash, or other asset classes. This singular focus on equities enhances growth potential but also increases volatility and risk, particularly in market downturns. Diversification across different asset classes could provide a buffer against stock market fluctuations, potentially smoothing out returns over time.

Sectors Info

  • Financials
    22%
  • Industrials
    16%
  • Technology
    16%
  • Health Care
    10%
  • Consumer Discretionary
    9%
  • Consumer Staples
    6%
  • Basic Materials
    6%
  • Telecommunications
    5%
  • Energy
    4%
  • Utilities
    3%
  • Real Estate
    2%

The sectoral allocation is fairly diversified, with significant weightings in Financial Services, Industrials, and Technology, which together comprise over half of the portfolio. This sectoral spread aligns with a balanced growth strategy but may expose the portfolio to sector-specific risks, such as regulatory changes in financial services or rapid technological shifts affecting the tech sector.

Regions Info

  • Europe Developed
    41%
  • North America
    29%
  • Japan
    17%
  • Asia Developed
    7%
  • Australasia
    5%
  • Africa/Middle East
    1%

Geographically, the portfolio is heavily weighted towards developed markets, with a notable emphasis on Europe and North America. This orientation towards developed markets may reduce exposure to the volatility of emerging markets but might also limit potential high-growth opportunities available in those regions.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    33%
  • Mid-cap
    14%
  • Small-cap
    1%

The portfolio's focus on mega and big cap stocks (81% combined) suggests a preference for established, large companies likely to offer stability and steady growth. However, the minimal exposure to small and micro-cap stocks might limit opportunities for outsized gains that these smaller companies can sometimes provide.

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.

While the portfolio is performing well, there's room for optimization. An analysis suggests that with the same level of risk, an optimized portfolio could potentially achieve a higher expected return of 15.27%. This indicates that adjusting the asset allocation could improve the risk-return profile, possibly by diversifying across more asset classes or adjusting the geographic or sectoral distribution.

Dividends Info

  • Schwab U.S. Broad Market ETF 1.10%
  • Schwab International Equity ETF 2.30%
  • Weighted yield (per year) 2.06%

The dividend yields from the ETFs contribute to the portfolio's overall return, with a total yield of 2.06%. This income can provide a steady cash flow and help cushion the portfolio during market dips, emphasizing the role of dividends in achieving a balanced growth strategy.

Ongoing product costs Info

  • Schwab U.S. Broad Market ETF 0.03%
  • Schwab International Equity ETF 0.06%
  • Weighted costs total (per year) 0.05%

The portfolio benefits from exceptionally low costs, with a Total Expense Ratio (TER) of 0.05%. Low costs are crucial for enhancing long-term returns, as they allow a greater portion of investment gains to compound over time. This cost efficiency is a clear strength of the portfolio.

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