A technology-focused growth portfolio with significant dividend exposure and moderate diversification

Report created on Dec 31, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio comprises four ETFs, each holding a significant portion. With equal 30% allocations to Schwab U.S. Dividend Equity, VanEck Semiconductor, and Vanguard S&P 500 ETFs, it emphasizes both dividend yield and growth potential. A smaller 10% allocation to Vanguard Information Technology Index Fund ETF Shares highlights a technology bias. This structure is moderately diversified, but with a strong tilt towards technology. Maintaining a balanced asset allocation is crucial for managing risk and optimizing returns.

Growth Info

Historically, the portfolio has shown strong performance with a Compound Annual Growth Rate (CAGR) of 18.83%. This indicates a robust growth trajectory, especially when compared to standard benchmarks like the S&P 500. However, the Max Drawdown of -34.4% suggests considerable volatility, which is typical for growth-oriented portfolios. It's important to remember that past performance doesn't guarantee future results. Regularly reviewing performance against benchmarks can help ensure alignment with investment goals.

Projection Info

Monte Carlo simulations, which use historical data to predict future outcomes, indicate promising potential. With 1,000 simulations, the 50th percentile projects a 994.67% return, suggesting strong growth prospects. However, the 5th percentile shows just a 193.52% return, highlighting possible downside risks. While projections offer valuable insights, they rely on historical data and assumptions, which can change. It's essential to continuously monitor these projections and adjust strategies as needed.

Asset classes Info

  • Stocks
    100%

The portfolio is heavily weighted in stocks, comprising nearly 100% of the asset allocation. This single asset class focus can lead to higher returns during bull markets, but also increased risk during downturns. Diversification across multiple asset classes, such as bonds or real estate, can help mitigate risk and provide more stability. Consider exploring additional asset classes to enhance diversification and reduce portfolio volatility.

Sectors Info

  • Technology
    53%
  • Financials
    10%
  • Health Care
    8%
  • Consumer Discretionary
    6%
  • Consumer Staples
    6%
  • Industrials
    6%
  • Energy
    5%
  • Telecommunications
    4%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

With over 53% in technology, the portfolio is significantly concentrated in this sector. While this can drive growth, it also increases exposure to sector-specific risks, such as regulatory changes or market saturation. Other sectors like financial services and healthcare are present but less pronounced. Balancing sector allocations can help manage risk and capitalize on broader market opportunities. Regularly reassessing sector weights can ensure alignment with market trends.

Regions Info

  • North America
    93%
  • Asia Developed
    4%
  • Europe Developed
    2%

The portfolio's geographic allocation is predominantly in North America, accounting for over 93%. This regional focus may limit exposure to international growth opportunities and increase vulnerability to local economic fluctuations. Diversifying geographically can enhance returns and reduce risk by tapping into global markets. Consider increasing exposure to underrepresented regions like Asia or Europe to better capture global growth potential.

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's risk-return balance can be optimized using the Efficient Frontier, which identifies the best possible risk-return ratio given current assets. This doesn't necessarily imply broader diversification but focuses on maximizing returns for a given risk level. Adjusting the allocation among existing assets can improve efficiency. Consider consulting with a financial advisor to explore optimization strategies that align with your risk tolerance and investment goals.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.70%
  • Vanguard Information Technology Index Fund ETF Shares 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.53%

The portfolio's total dividend yield of 1.53% is primarily driven by the Schwab U.S. Dividend Equity ETF. Dividends can provide a steady income stream, which is beneficial for reinvestment or income purposes. However, the focus on growth may mean less emphasis on dividend returns. Balancing growth and income objectives is key. Consider reviewing dividend policies to ensure they align with your financial goals.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.14%

The portfolio's Total Expense Ratio (TER) of 0.14% is impressively low, contributing positively to long-term returns. Lower costs mean more of your investment gains remain in your pocket, enhancing compounding effects over time. Regularly reviewing and managing costs is essential to maintain efficiency. Ensure that any future investments also prioritize low-cost options to continue maximizing returns.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey