A balanced and broadly diversified portfolio with a strong focus on US equities and dividend income

Report created on Aug 8, 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 primarily composed of three ETFs, focusing on US equities, dividend-paying stocks, and international exposure. The significant weight in the SPDR® Portfolio S&P 500 ETF (60%) and the Schwab U.S. Dividend Equity ETF (25%) indicates a strong lean towards the US market, particularly large-cap stocks known for stability and dividends. The inclusion of the Vanguard Total International Stock Index Fund ETF Shares (15%) adds a layer of global diversification, though the overall international exposure remains relatively modest.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.01%, with a maximum drawdown of -33.61%. These figures suggest resilience and the potential for robust growth over time, though the drawdown highlights periods of significant volatility. It's crucial to remember that past performance does not guarantee future results, and this historical resilience should be considered alongside other factors like market conditions and economic indicators.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential future outcomes, suggest a wide range of possibilities for this portfolio. With a median projected increase of 351.3% and 986 out of 1,000 simulations showing positive returns, there's a strong indication of potential growth. However, the variability between the 5th and 67th percentiles underscores the inherent uncertainties in predicting market movements.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no cash or other asset classes represented. This singular focus on equities maximizes growth potential but also exposes the portfolio to higher volatility and risk. Diversification across different asset classes, such as bonds or real estate, could provide a buffer against stock market fluctuations.

Sectors Info

  • Technology
    26%
  • Financials
    14%
  • Health Care
    11%
  • Consumer Discretionary
    10%
  • Industrials
    10%
  • Consumer Staples
    9%
  • Telecommunications
    8%
  • Energy
    7%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

The sector allocation is well-diversified across technology, financial services, healthcare, and consumer sectors, among others. This diversification helps mitigate sector-specific risks. However, the heavy weighting in technology (26%) could expose the portfolio to higher volatility, given the sector's rapid growth and potential for significant price swings.

Regions Info

  • North America
    86%
  • Europe Developed
    6%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

With 86% of assets in North America, the portfolio is heavily weighted towards the US market. While this focus has historically offered strong growth opportunities, it also concentrates geographic risk and may underutilize the potential benefits of broader international diversification, particularly in emerging markets and developed regions outside of North America.

Market capitalization Info

  • Large-cap
    40%
  • Mega-cap
    35%
  • Mid-cap
    21%
  • Small-cap
    3%

The allocation across market capitalizations shows a preference for larger companies (big and mega-caps), which are typically more stable but might offer lower growth potential compared to smaller companies. This blend supports the portfolio's balanced risk profile but may limit exposure to high-growth opportunities in the small and micro-cap spaces.

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.

While the portfolio is well-positioned on the Efficient Frontier, suggesting an optimal risk-return balance with its current allocation, it's important to regularly reassess this positioning. Market dynamics and personal financial goals evolve, and what is optimal today may not be tomorrow. Continuous monitoring and occasional rebalancing can help maintain this efficiency.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.80%
  • SPDR® Portfolio S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 2.09%

The portfolio's focus on dividend-paying ETFs, with an overall yield of 2.09%, emphasizes income generation alongside capital appreciation. This approach can provide a steady income stream, which is particularly appealing in volatile or declining markets. However, it's essential to balance the search for dividends with the growth potential of non-dividend-paying sectors and companies.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.03%

With an overall portfolio expense ratio of 0.03%, the costs associated with this portfolio are impressively low, which supports better long-term performance by minimizing the drag on returns. Keeping costs low is a fundamental principle of successful long-term investing, and this portfolio aligns well with that strategy.

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