Balanced portfolio with a strong focus on US equities and technology sector exposure

Report created on Jul 21, 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 heavily weighted towards US equities, with a significant emphasis on technology through its allocations in Vanguard S&P 500 ETF and Invesco NASDAQ 100 ETF. The inclusion of Schwab U.S. Dividend Equity ETF and Vanguard Total International Stock Index Fund ETF Shares introduces a degree of diversification, though international exposure remains limited. The overall composition suggests a strategy favoring growth through large-cap and tech-oriented companies, while the allocation to dividend-paying stocks aims to provide a steady income stream.

Growth Info

Historically, this portfolio has demonstrated robust performance with a Compound Annual Growth Rate (CAGR) of 14.69%. The maximum drawdown of -25.71% indicates resilience during market downturns, though it also highlights potential volatility. The days contributing to 90% of returns being concentrated in just 20 days suggest significant returns are driven by relatively few, high-impact trading days, emphasizing the importance of staying invested during market fluctuations.

Projection Info

Using Monte Carlo simulation, which projects future performance based on historical data, this portfolio shows a wide range of outcomes. The median 50th percentile outcome suggests a potential 439.1% return, indicating strong growth prospects. However, it's important to remember that such simulations are inherently uncertain and past performance is not indicative of future results. This tool helps in understanding potential risks and rewards but should not be the sole basis for investment decisions.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, with no allocation to bonds, cash, or alternative investments. This singular focus on equities enhances growth potential but also increases volatility and risk. Diversifying across different asset classes can provide a buffer against stock market downturns, potentially smoothing out returns over time.

Sectors Info

  • Technology
    33%
  • Financials
    12%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Health Care
    9%
  • Industrials
    8%
  • Consumer Staples
    7%
  • Energy
    4%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

The sectoral allocation reveals a heavy tilt towards technology, which constitutes a third of the portfolio. This concentration in tech, along with significant investments in financial services and consumer cyclicals, suggests a growth-oriented strategy. However, it also exposes the portfolio to sector-specific risks, such as regulatory changes or economic shifts affecting technology and finance companies.

Regions Info

  • North America
    90%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%

Geographic allocation is predominantly in North America (90%), with minimal exposure to international markets. This concentration enhances exposure to the US economy's growth potential but limits global diversification. Expanding into more diverse international holdings could mitigate risks associated with regional economic downturns and tap into growth opportunities in emerging markets.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    36%
  • Mid-cap
    18%
  • Small-cap
    1%

The focus on mega and big-cap companies (79% combined) aligns with the portfolio's growth and stability objectives, as these companies are typically less volatile than smaller counterparts. However, the minimal exposure to small and micro-cap stocks limits potential high-growth opportunities in these segments, which can offer significant returns during bull markets.

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, there may be opportunities to optimize the risk-return ratio through slight adjustments in asset allocation. While the portfolio already demonstrates strong historical performance, fine-tuning the balance between growth-oriented tech stocks and diversifying assets could potentially enhance returns or reduce volatility, or both.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.48%

The portfolio's dividend yield strategy, with an overall yield of 1.48%, provides an additional income stream, which can be particularly beneficial during market downturns or for investors seeking regular income. The high yield from Schwab U.S. Dividend Equity ETF is a notable contributor, balancing the lower yields from other holdings.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.06%

The portfolio's total expense ratio (TER) of 0.06% is impressively low, maximizing potential net returns for investors. Keeping costs low is crucial for long-term investment success, as high fees can significantly erode returns over time. This portfolio's cost efficiency is a strong point, supporting better performance compared to higher-cost alternatives.

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