Balanced portfolio with strong focus on US and developed markets and moderate diversification

Report created on Aug 1, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

Your portfolio is structured around three main ETFs, focusing on large-cap US equities, international value stocks, and US mid-cap stocks. This setup offers a blend of growth and value, aiming for a balanced risk profile. However, with 100% of assets in stocks, your exposure to market volatility is significant. The portfolio's diversification across sectors and geographies is commendable, but the absence of asset classes beyond stocks, such as bonds or real estate, suggests room for diversification improvement.

Growth Info

Historically, your portfolio has achieved an impressive Compound Annual Growth Rate (CAGR) of 11.92%, with a maximum drawdown of -23.16%. These figures indicate a robust performance, albeit with periods of significant value decline. The days contributing most to returns highlight the portfolio's reliance on specific high-performing periods. Comparing these results to a balanced benchmark could provide further insight into relative performance, especially during market downturns.

Projection Info

Monte Carlo simulations, which predict future performance based on past data, suggest a wide range of outcomes for your portfolio. With 986 out of 1,000 simulations showing positive returns, the forecast appears optimistic. However, the significant variance between the 5th and 67th percentiles underscores the inherent uncertainty in these projections. Remember, while simulations are useful for planning, they cannot guarantee future results.

Asset classes Info

  • Stocks
    100%

Your portfolio's allocation to stocks is both its strength and its main risk. Stocks offer the potential for high returns but come with higher volatility compared to bonds or alternative investments. Given the portfolio's balanced risk profile, incorporating fixed income or other asset classes could provide a buffer against stock market fluctuations, enhancing stability without drastically compromising growth potential.

Sectors Info

  • Technology
    21%
  • Financials
    19%
  • Industrials
    15%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Consumer Staples
    6%
  • Telecommunications
    6%
  • Basic Materials
    5%
  • Energy
    5%
  • Utilities
    2%
  • Real Estate
    1%

The sectoral distribution within your portfolio shows a well-considered approach to capturing diverse economic activities. However, the heavy weighting towards technology and financial services, while reflective of broader market trends, could expose you to sector-specific risks. Diversifying further into underrepresented sectors or adjusting allocations based on evolving market conditions could mitigate this risk.

Regions Info

  • North America
    77%
  • Europe Developed
    15%
  • Japan
    5%
  • Australasia
    1%
  • Asia Developed
    1%

Geographically, your portfolio is heavily weighted towards North America and developed European markets, with minimal exposure to emerging markets and Asia-Pacific regions. This concentration in developed markets aligns with a lower risk tolerance but may limit growth opportunities in faster-growing economies. Gradually increasing exposure to emerging markets could offer a balance between risk and potential return.

Market capitalization Info

  • Mega-cap
    31%
  • Large-cap
    30%
  • Mid-cap
    22%
  • Small-cap
    16%

The mix of mega, big, medium, and small-cap stocks in your portfolio suggests a strategy aimed at balancing stability with growth. Medium and small-cap stocks, while riskier, offer growth potential that complements the stability provided by mega and big-cap stocks. This distribution supports a balanced risk-return profile but warrants periodic review to ensure alignment with your investment goals.

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.

Your portfolio's current configuration suggests a thoughtful approach to achieving a balance between risk and return. Utilizing the Efficient Frontier concept could further optimize this balance by adjusting the allocation among the existing assets. This optimization seeks to maximize returns for a given level of risk, although it's important to remember that it's based on historical data, which may not predict future performance accurately.

Dividends Info

  • Dimensional International Value ETF 3.40%
  • SPDR® Portfolio S&P 500 ETF 1.20%
  • Invesco S&P MidCap Quality ETF 0.70%
  • Weighted yield (per year) 1.62%

The dividend yields across your ETFs contribute to the portfolio's total yield of 1.62%, providing a steady income stream in addition to potential capital gains. While dividends are a welcome feature, especially in a balanced portfolio, it's important to balance yield-seeking with growth prospects. Reinvesting dividends can compound growth over time, aligning with long-term investment objectives.

Ongoing product costs Info

  • Dimensional International Value ETF 0.27%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Invesco S&P MidCap Quality ETF 0.25%
  • Weighted costs total (per year) 0.14%

With a total expense ratio (TER) of 0.14%, your portfolio benefits from relatively low costs, which can significantly impact long-term returns. The low-cost structure of the ETFs selected is commendable and aligns with best practices for maximizing investment efficiency. Regularly reviewing costs and considering even lower-cost alternatives for similar exposure can further enhance returns.

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