This portfolio has only about 1.1 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

A cautious portfolio with strong US focus and potential for steady growth

Report created on Jan 1, 2025

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

Positions

The portfolio is heavily weighted towards equities, comprising 83.4% stocks, complemented by 11.5% bonds. This allocation is typical for a moderately diversified portfolio, aiming for growth with some stability. Compared to common benchmarks, the portfolio leans more into equities, which could increase potential returns but also risk. The inclusion of bonds provides a cushion against volatility. Consider increasing bond exposure if a lower risk profile is desired. Diversification across asset types is moderate, with room for improvement by including more non-correlated assets.

Growth Info

Historically, the portfolio has performed well with a Compound Annual Growth Rate (CAGR) of 21.11% and a maximum drawdown of -6.78%. This indicates strong growth with manageable declines, aligning with a cautious investment strategy. While past performance is promising, it's important to remember that it doesn't guarantee future results. To maintain this performance, continue monitoring market conditions and adjust allocations as necessary to manage risk and capitalize on growth opportunities.

Projection Info

Monte Carlo simulations, which use historical data to predict future outcomes, suggest a wide range of potential returns. The 50th percentile projects a 1,193.64% increase, indicating strong growth potential. However, the reliance on historical data means these projections aren't foolproof. Consider using these insights as a guide rather than a certainty. Regularly reassess the portfolio to ensure it aligns with your risk tolerance and market changes, potentially adjusting allocations to optimize for projected outcomes.

Asset classes Info

  • Stocks
    83%
  • Bonds
    11%
  • Other
    2%
  • Cash
    2%
  • Real Estate
    1%
  • No data
    1%

The portfolio's asset class distribution is heavily skewed towards stocks, with 83.4% allocation, while bonds make up 11.5%. This reflects a growth-oriented approach, but it may expose the portfolio to higher volatility. Compared to typical benchmarks, the bond allocation is on the lower side, which could be adjusted for more stability. Introducing more alternative asset classes could enhance diversification and reduce risk. Consider evaluating the impact of adding assets like real estate or commodities to balance the equity-heavy composition.

Sectors Info

  • Technology
    24%
  • Financials
    12%
  • Consumer Discretionary
    10%
  • Industrials
    9%
  • Telecommunications
    8%
  • Health Care
    8%
  • Energy
    6%
  • Consumer Staples
    5%
  • Real Estate
    3%
  • Basic Materials
    3%
  • Utilities
    3%

Sector allocation is led by technology at 23.9%, followed by financial services and consumer cyclicals. This tech-heavy focus aligns with growth trends but may increase volatility, especially during interest rate changes. The sector distribution generally aligns with benchmark norms, indicating a balanced approach. However, diversifying further into underrepresented sectors like utilities or consumer defensive could reduce risk. Regularly review sector trends and adjust allocations to maintain a diversified and resilient portfolio.

Regions Info

  • North America
    77%
  • Europe Developed
    7%
  • Japan
    3%
  • Asia Emerging
    1%
  • Asia Developed
    1%
  • Australasia
    1%

The portfolio's geographic exposure is predominantly in North America at 76.5%, with limited exposure to other regions. This concentration may limit diversification benefits and increase vulnerability to regional economic shifts. Compared to benchmarks, there's an underexposure to emerging markets, which could offer growth opportunities. Consider diversifying geographically by increasing allocations in Europe, Asia, or other emerging markets to enhance resilience against regional downturns and capture global growth potential.

Redundant positions Info

  • Fidelity Enhanced International ETF
    Dimensional International Core Equity Market ETF
    High correlation
  • JPMorgan Core Plus Bond
    Fidelity® Total Bond ETF
    High correlation
  • SPDR® Portfolio S&P 500 ETF
    JPMorgan Equity Focus ETF
    Fidelity Covington Trust - Fidelity U.S. Multifactor ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation
  • Vanguard Russell 1000 Growth Index Fund ETF Shares
    Vanguard Information Technology Index Fund ETF Shares
    High correlation

Several asset groups within the portfolio show high correlation, such as the SPDR® Portfolio S&P 500 ETF and the JPMorgan Equity Focus ETF. High correlation means these assets tend to move in the same direction, which could limit diversification benefits. To improve risk management, consider reducing allocations in overlapping assets and introducing more non-correlated investments. This adjustment could enhance the portfolio's ability to withstand market fluctuations and improve overall stability.

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.

The portfolio could benefit from optimization using the Efficient Frontier, which aims to achieve the best risk-return ratio. Before optimizing, consider removing highly correlated assets that offer little diversification. This step can enhance the portfolio's efficiency by reallocating to assets with better diversification benefits. Focus on adjusting existing allocations rather than adding new assets, as this approach can improve the risk-return profile without complicating the portfolio.

Dividends Info

  • Avantis® International Small Cap Value ETF 4.30%
  • iShares J.P. Morgan EM Corporate Bond ETF 4.20%
  • Dimensional International Core Equity Market ETF 1.90%
  • Fidelity® Total Bond ETF 4.20%
  • Fidelity® Emerging Markets Multifactor ETF 2.80%
  • Fidelity Enhanced International ETF 2.40%
  • Fidelity Covington Trust - Fidelity U.S. Multifactor ETF 1.00%
  • iShares Currency Hedged MSCI EAFE ETF 1.70%
  • iShares Edge High Yield Defensive Bond ETF 6.40%
  • JPMorgan Core Plus Bond 4.70%
  • JPMorgan International Bond Opportunities ETF 3.80%
  • J P Morgan Exchange-Traded Fund Trust - Limited Duration Bond ETF 3.70%
  • JPMorgan Realty Income ETF 1.50%
  • WisdomTree 90/60 US Balanced 0.80%
  • Invesco S&P 500® Quality ETF 0.90%
  • SPDR® Portfolio S&P 500 ETF 1.30%
  • T. Rowe Price Exchange-Traded Funds Inc. - T. Rowe Price Floating Rate ETF 8.20%
  • Vanguard Small-Cap Value Index Fund ETF Shares 1.40%
  • Vanguard Information Technology Index Fund ETF Shares 0.60%
  • Vanguard Russell 1000 Growth Index Fund ETF Shares 0.40%
  • Invesco Variable Rate Preferred ETF 4.60%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Invesco S&P MidCap Momentum ETF 0.20%
  • Weighted yield (per year) 1.74%

The portfolio's dividend yield stands at 1.74%, with notable contributions from the Fidelity® Total Bond ETF and the T. Rowe Price Floating Rate ETF. Dividends provide a steady income stream, which is beneficial for cautious investors seeking regular returns. However, the overall yield is relatively low compared to income-focused portfolios. To increase dividend income, consider reallocating to higher-yielding assets or adding dividend-focused funds. This strategy can enhance cash flow without significantly altering risk exposure.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • iShares J.P. Morgan EM Corporate Bond ETF 0.50%
  • Dimensional International Core Equity Market ETF 0.18%
  • Fidelity® Total Bond ETF 0.36%
  • Fidelity® Emerging Markets Multifactor ETF 0.25%
  • Fidelity Enhanced International ETF 0.28%
  • Fidelity Covington Trust - Fidelity U.S. Multifactor ETF 0.15%
  • SPDR Gold MiniShares 0.10%
  • abrdn Physical Precious Metals Basket Shares ETF 0.60%
  • iShares Currency Hedged MSCI EAFE ETF 0.35%
  • Capitol Series Trust 0.96%
  • iShares Edge High Yield Defensive Bond ETF 0.35%
  • JPMorgan Core Plus Bond 0.40%
  • JPMorgan Equity Focus ETF 0.50%
  • JPMorgan International Bond Opportunities ETF 0.50%
  • J P Morgan Exchange-Traded Fund Trust - Limited Duration Bond ETF 0.24%
  • JPMorgan Realty Income ETF 0.50%
  • WisdomTree 90/60 US Balanced 0.20%
  • Invesco S&P 500® Quality ETF 0.15%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • T. Rowe Price Exchange-Traded Funds Inc. - T. Rowe Price Floating Rate ETF 0.60%
  • Vanguard Small-Cap Value Index Fund ETF Shares 0.07%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Russell 1000 Growth Index Fund ETF Shares 0.08%
  • Invesco Variable Rate Preferred ETF 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Invesco S&P MidCap Momentum ETF 0.34%
  • Weighted costs total (per year) 0.20%

The portfolio's total expense ratio (TER) is 0.2%, which is commendably low. Lower costs contribute positively to long-term returns by minimizing the drag on performance. This cost efficiency aligns with best practices for maintaining a cost-effective portfolio. Continue to monitor and evaluate fund expenses regularly to ensure they remain competitive. Consider replacing high-fee assets with lower-cost alternatives if any arise, further optimizing the portfolio's cost structure for better returns.

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