Balanced but growth-focused portfolio with strong emphasis on ETFs and high diversification

Report created on Sep 19, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is composed of two ETFs, with a significant emphasis on the WisdomTree Efficient Gold Plus Equity Strategy Fund at 55% and the American Century ETF Trust covering the remaining 45%. This allocation suggests a strategic blend aiming to leverage the growth potential of equities while incorporating the stability of gold. The high allocation towards a single fund, however, could introduce specific risk tied to the performance of that fund, despite the portfolio's overall diversified status across sectors and geographies.

Growth Info

Historically, this portfolio has shown impressive performance, with a Compound Annual Growth Rate (CAGR) of 31.45%. The maximum drawdown experienced was -16.36%, indicating a relatively high tolerance for volatility, in line with its balanced risk profile. It's important to note that such high returns are exceptional and may not be sustainable over the long term. Past performance is not a reliable indicator of future results, and investors should be cautious in expecting similar outcomes moving forward.

Projection Info

Utilizing Monte Carlo simulations, which generate a range of potential future outcomes based on historical data, the portfolio shows a wide range of projected growth, from 1,693.8% to 8,395.7% at key percentiles. While these simulations offer a broad view of potential future performances, they are inherently limited by past data and cannot account for unforeseen market changes. Therefore, while the projections are encouraging, they should be viewed as one of many tools in evaluating investment strategies.

Asset classes Info

  • Stocks
    94%
  • Other
    6%

With 94% of the portfolio allocated to stocks, the asset class distribution underscores a growth-oriented strategy but with limited diversification across asset classes. The remaining 6% categorized as 'Other' likely represents the gold exposure through the WisdomTree fund. This heavy tilt towards equities suggests a higher risk and return profile, which might not be suitable for all investors, particularly those with a lower risk tolerance or nearing retirement.

Sectors Info

  • Technology
    22%
  • Financials
    18%
  • Consumer Discretionary
    14%
  • Industrials
    11%
  • Telecommunications
    10%
  • Health Care
    7%
  • Energy
    6%
  • Consumer Staples
    5%
  • Basic Materials
    4%
  • Utilities
    2%
  • Real Estate
    1%

The sectoral allocation covers a broad spectrum, with technology, financial services, and consumer cyclicals leading. This composition aligns with a growth-focused strategy, given these sectors' potential for higher returns. However, the concentration in these high-growth areas also increases susceptibility to market volatility and sector-specific downturns. Diversifying across a wider range of sectors could mitigate some of this risk.

Regions Info

  • North America
    84%
  • Europe Developed
    6%
  • Japan
    3%
  • Asia Emerging
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Latin America
    1%

The geographic allocation is heavily weighted towards North America (84%), with minimal exposure to other regions. This concentration in developed markets, particularly the U.S., may limit potential gains from emerging markets and increase the portfolio's vulnerability to regional economic shifts. Broadening geographic exposure could enhance returns and reduce risks associated with any single market.

Market capitalization Info

  • Mega-cap
    31%
  • Large-cap
    25%
  • Mid-cap
    23%
  • Small-cap
    9%
  • Micro-cap
    4%

The market capitalization breakdown shows a balanced exposure across mega, big, and medium-sized companies, with smaller allocations to small and micro-caps. This distribution suggests a moderate risk approach, balancing the stability of large caps with the growth potential of smaller companies. However, the relatively lower allocation to small and micro-caps could mean missing out on significant growth opportunities in these segments.

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, which aims to maximize returns for a given level of risk, this portfolio appears to strike a balance between risk and return. However, the heavy reliance on two ETFs may limit its potential for further optimization. Diversifying across more asset classes and adjusting allocations could enhance the risk-return profile, moving the portfolio closer to the Efficient Frontier's optimal curve.

Dividends Info

  • American Century ETF Trust 2.10%
  • WisdomTree Efficient Gold Plus Equity Strategy Fund 4.90%
  • Weighted yield (per year) 3.64%

The dividend yields from the two ETFs contribute to the portfolio's total yield of 3.64%, with the WisdomTree fund offering a higher yield of 4.90%. This income component can provide a steady cash flow, which is beneficial in volatile markets or for investors seeking regular income. However, the focus on dividends should not overshadow the importance of total return, combining both income and capital gains.

Ongoing product costs Info

  • American Century ETF Trust 0.26%
  • WisdomTree Efficient Gold Plus Equity Strategy Fund 0.20%
  • Weighted costs total (per year) 0.23%

The portfolio's total expense ratio (TER) of 0.23% is relatively low, enhancing its attractiveness by minimizing the drag on returns due to costs. Keeping investment costs low is a crucial component of maximizing long-term returns, and this portfolio's cost structure is well-positioned to support that goal.

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