Balanced and broadly diversified portfolio with a strong focus on large-cap equities and global exposure

Report created on Jul 19, 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 U.S. large-cap equities, making up 65% of the allocation, followed by international equities at 20%, emerging markets at 10%, and U.S. small-cap equities at 5%. This composition reflects a balanced approach, leaning towards more stable, large-cap stocks, which typically offer lower volatility than their smaller counterparts. The inclusion of international and emerging market equities enhances diversification and exposure to global growth opportunities.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 12.13% and a maximum drawdown of -34.26%, the portfolio has demonstrated resilience and strong performance. The days contributing to 90% of returns indicate significant gains concentrated in specific periods, typical of equity-focused portfolios. This performance, coupled with the balanced risk score of 4 out of 7, suggests a well-calibrated approach to risk-taking, balancing growth with downside protection.

Projection Info

Monte Carlo simulations, which use historical data to project a range of possible outcomes, suggest a wide range of potential future returns for this portfolio. With the 50th percentile indicating a 208.7% increase and 935 out of 1,000 simulations showing positive returns, the forward-looking projections appear optimistic. However, it's crucial to remember that these simulations are based on past data and cannot guarantee future results.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is exclusively in stocks, with no presence in bonds, cash, or other asset classes. This concentration in equities is aligned with a higher growth objective but comes with increased volatility. Diversifying across different asset classes could offer better risk-adjusted returns, especially during market downturns when bonds and cash equivalents typically offer a safe haven.

Sectors Info

  • Technology
    27%
  • Financials
    17%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

The sector allocation shows a heavy emphasis on technology and financial services, which are known for their growth potential but also for their volatility. The presence in industrials, consumer cyclicals, and healthcare provides a balance, contributing to the portfolio's diversification. However, the high concentration in technology could expose the portfolio to sector-specific risks.

Regions Info

  • North America
    72%
  • Europe Developed
    11%
  • Asia Emerging
    6%
  • Japan
    4%
  • Asia Developed
    4%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

With 72% of assets allocated to North America, the portfolio has a significant home bias. While this may reflect familiarity and confidence in the U.S. market, the underrepresentation of other regions, especially emerging markets, may limit exposure to global growth trends. Increasing allocations to underrepresented regions could enhance diversification and potential returns.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    31%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    2%

The focus on mega and big-cap stocks, comprising 75% of the portfolio, aligns with the portfolio's balanced risk profile, as these companies typically offer stability and resilience. However, the limited exposure to small and micro-cap stocks might restrict potential high-growth opportunities, which these smaller companies can offer.

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 current portfolio appears well-positioned on the Efficient Frontier, indicating an optimal risk-return ratio based on its existing assets and allocations. However, the potential for further optimization exists, particularly by diversifying across more asset classes and adjusting sector and geographic exposures. Regularly reviewing and adjusting the portfolio can help maintain this efficiency over time.

Dividends Info

  • Schwab U.S. Small-Cap ETF 1.50%
  • Schwab Emerging Markets Equity ETF 2.60%
  • Schwab International Equity ETF 2.60%
  • Schwab U.S. Large-Cap ETF 1.20%
  • Weighted yield (per year) 1.64%

The portfolio's average dividend yield of 1.64% contributes to its total return, providing a steady income stream in addition to capital gains. This yield is a result of a balanced mix of dividend-paying equities, with emerging markets and international equities offering higher yields than their U.S. counterparts. Reinvesting dividends can compound growth over time.

Ongoing product costs Info

  • Schwab U.S. Small-Cap ETF 0.04%
  • Schwab Emerging Markets Equity ETF 0.11%
  • Schwab International Equity ETF 0.06%
  • Schwab U.S. Large-Cap ETF 0.03%
  • Weighted costs total (per year) 0.04%

With a total expense ratio (TER) of 0.04%, the portfolio benefits from low costs, supporting better long-term performance. Low-cost ETFs are a strategic choice for minimizing expenses, ensuring more of the portfolio's returns are retained by the investor. Continuously monitoring and controlling costs is key to maximizing net returns.

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