A focused portfolio with a strong lean towards US equities and minimal international exposure

Report created on Jun 17, 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 heavily weighted towards the Vanguard S&P 500 ETF, making up 80% of the allocation, with the remaining 20% in the Vanguard Total International Stock Index Fund ETF Shares. This composition indicates a strong preference for US equities, given the S&P 500's focus on large-cap US companies. The international component provides some global exposure, though it's limited. The overall diversification is broad across sectors, but the geographic diversification leans heavily towards North America.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 12.68%, with a maximum drawdown of -33.94%. These numbers suggest a strong performance, particularly in the context of its risk score of 4 out of 7, which indicates a balanced risk profile. However, the significant drawdown points to potential vulnerability during market downturns, emphasizing the importance of understanding one's risk tolerance and investment horizon.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. The median projection suggests a 269.4% return, with a lower bound of 16.4% and an upper bound of 409.6%. It's crucial to note that while these simulations can provide insight, they're not predictive. They're based on past market behavior, which is not a guaranteed indicator of future performance.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely invested in stocks (99%), with a minimal cash holding (1%). This allocation underscores a growth-oriented strategy but also exposes the portfolio to market volatility. Diversification across different asset classes could provide a buffer during market downturns, potentially reducing volatility without significantly compromising growth prospects.

Sectors Info

  • Technology
    28%
  • Financials
    16%
  • Consumer Discretionary
    10%
  • Health Care
    10%
  • Industrials
    9%
  • Telecommunications
    9%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

Sectoral allocation is broadly diversified, with technology (28%) and financial services (16%) being the most significant. This sectoral spread is in line with the current market trends, where technology plays a crucial role in driving market performance. However, heavy reliance on a few sectors can increase susceptibility to sector-specific downturns.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographic allocation is heavily skewed towards North America (81%), with modest exposure to developed Europe (8%) and emerging Asia (3%). This geographic distribution reflects a conservative approach to international investing, potentially missing out on growth opportunities in emerging markets and other developed regions.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    33%
  • Mid-cap
    18%
  • Small-cap
    1%

The portfolio's market capitalization breakdown shows a preference for mega (46%) and big (33%) cap stocks, which are typically less volatile than smaller companies. However, this focus may limit exposure to high-growth opportunities in the medium and small-cap sectors.

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, this portfolio may not be fully optimized for the best possible risk-return ratio, primarily due to its heavy concentration in US equities. Diversifying across more asset classes and geographies could potentially enhance returns for the same level of risk, or achieve a similar return with reduced risk.

Dividends Info

  • Vanguard S&P 500 ETF 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.60%

The portfolio's dividend yield stands at 1.60%, with the international fund contributing a higher yield (2.80%) compared to the S&P 500 ETF (1.30%). This yield provides a modest income stream, which can be reinvested for compounding or used as passive income, depending on the investor's strategy.

Ongoing product costs Info

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

The portfolio benefits from low costs, with Total Expense Ratios (TER) of 0.03% for the Vanguard S&P 500 ETF and 0.05% for the Vanguard Total International Stock Index Fund ETF Shares. Low costs are crucial for long-term investment success, as they directly enhance net returns by reducing the drag on performance.

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