A globally diversified ETF portfolio with a strong focus on technology and developed markets

Report created on Jul 20, 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 primarily composed of three ETFs, focusing on major stock markets with a significant portion allocated to the Vanguard S&P 500 ETF (50%), followed by the Vanguard Total International Stock Index Fund ETF Shares (45%), and a smaller allocation to the Invesco NASDAQ 100 ETF (5%). This composition suggests a strategy emphasizing broad market exposure, particularly to U.S. and international equities, with a lean towards technology through the NASDAQ component. The portfolio's diversification is broad, spanning multiple sectors and geographic regions, albeit with a heavy emphasis on North America and developed markets.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.84%, with a maximum drawdown of -26.34%. These figures indicate a relatively strong performance with a moderate level of volatility. The performance is further highlighted by days contributing to 90% of returns, totaling 18 days, underscoring the impact of significant market movements on overall returns. This historical performance, while promising, should be considered with the understanding that past results do not guarantee future outcomes.

Projection Info

Using Monte Carlo simulations, the portfolio's forward projection shows a wide range of potential outcomes, from a 5th percentile of 75.4% to a 67th percentile of 706.2%, with an annualized return across all simulations at 14.85%. These projections, based on historical data, illustrate the portfolio's potential for growth but also underscore the inherent uncertainty in market performances. It's crucial to remember that such simulations are hypothetical and cannot predict future market conditions with certainty.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily weighted towards stocks (99%), with a minimal cash holding (1%). This allocation demonstrates a growth-oriented investment strategy, suitable for investors with a higher risk tolerance. However, the lack of diversification into other asset classes like bonds or real estate might limit the portfolio's ability to hedge against stock market volatility. Considering a more varied asset class mix could provide better risk-adjusted returns over the long term.

Sectors Info

  • Technology
    25%
  • Financials
    17%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    4%
  • Utilities
    3%
  • Real Estate
    2%

Sector-wise, the portfolio has significant allocations in technology (25%), financial services (17%), and industrials (11%), among others. This sectoral distribution aligns with a growth-focused investment approach but may expose the portfolio to sector-specific risks, particularly in technology and financial services. Diversifying more evenly across sectors could reduce volatility and improve resilience against sector-specific downturns.

Regions Info

  • North America
    58%
  • Europe Developed
    18%
  • Asia Emerging
    7%
  • Japan
    7%
  • Asia Developed
    5%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America (58%) and developed markets in Europe (18%) and Asia. While this provides a solid foundation in stable, developed economies, the underrepresentation of emerging markets and other regions may limit exposure to high-growth opportunities elsewhere. Increasing allocation to emerging markets could enhance growth prospects and global diversification.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    33%
  • Mid-cap
    17%
  • Small-cap
    2%

The market capitalization breakdown shows a preference for mega (46%) and big (33%) cap stocks, with lesser exposure to medium (17%) and small (2%) caps. This tilt towards larger companies may contribute to portfolio stability but could also limit potential high-growth opportunities found in smaller cap stocks. A more balanced cap-size allocation might offer a better risk-return trade-off.

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.

Assessing the portfolio against the Efficient Frontier suggests there may be room for optimization to achieve the best possible risk-return ratio. This might involve adjusting the asset allocation or diversifying further across asset classes and sectors. However, it's essential to balance these adjustments with the investor's risk tolerance and investment goals.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.88%

The portfolio's dividend yield stands at 1.88%, contributed by the varying yields of the individual ETFs. While dividends are not the primary focus of this growth-oriented portfolio, they provide a source of passive income and potential reinvestment opportunities. Balancing growth and income-generating assets could further optimize the portfolio's performance.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

With a total expense ratio (TER) of 0.04%, the portfolio benefits from low-cost ETFs, enhancing its long-term growth potential by minimizing the drag on returns caused by fees. This efficient cost structure is commendable and aligns with best practices for maximizing investment returns over time.

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