This portfolio has only about 11 months 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.
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A balanced portfolio with strong growth potential and significant exposure to technology stocks

Report created on Dec 16, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio consists of six ETFs with a heavy emphasis on equities, particularly in the technology sector. The Vanguard S&P 500 Growth Index Fund ETF Shares makes up 40% of the portfolio, showcasing a strong inclination towards large-cap growth stocks. The remaining assets are spread across different regions and sectors, including a small allocation to a Bitcoin ETF. This composition indicates a focus on growth with some diversification across international markets. Such a structure is relevant as it allows for potential high returns while maintaining a degree of diversification to mitigate risks. To enhance balance, consider increasing exposure to other asset classes like bonds or real estate.

Growth Info

Historically, this portfolio has delivered impressive returns with a compound annual growth rate (CAGR) of 31.11%. However, it also experienced a maximum drawdown of 11.28%, highlighting its vulnerability during market downturns. This performance indicates a high-growth strategy that has benefited from favorable market conditions, particularly in the technology sector. While historical performance can provide insights, it is not a guarantee of future results. To manage potential risks, consider setting aside a portion of the portfolio in more stable assets to cushion against future volatility.

Projection Info

The Monte Carlo simulation, a tool that uses historical data to predict future performance, projects an annualized return of 42.91% across simulations. These projections suggest strong potential growth, with all simulations showing positive returns. However, the reliance on historical data means these projections may not fully account for future market shifts or unforeseen events. To prepare for various outcomes, it's wise to regularly review and adjust the portfolio based on changing market conditions and personal financial goals.

Asset classes Info

  • Stocks
    95%
  • Other
    5%

The portfolio is predominantly composed of stocks, with over 94% allocation, and a small portion in Bitcoin. This heavy stock allocation suggests a focus on capital appreciation rather than income generation or preservation. The limited exposure to other asset classes like bonds or cash could leave the portfolio vulnerable to market volatility. Diversifying into other asset classes can help stabilize returns and provide a hedge against stock market downturns. Consider gradually increasing allocations to fixed income or alternative investments to enhance risk-adjusted returns.

Sectors Info

  • Technology
    37%
  • Consumer Discretionary
    13%
  • Telecommunications
    11%
  • Financials
    10%
  • Industrials
    8%
  • Health Care
    6%
  • Consumer Staples
    3%
  • Basic Materials
    2%
  • Energy
    2%
  • Real Estate
    2%
  • Utilities
    1%

Technology is the leading sector in this portfolio, accounting for over 37% of the allocation. While this concentration can drive growth, it also exposes the portfolio to sector-specific risks. Other sectors, like consumer cyclicals and communication services, provide some diversification but are not as prominently represented. A more balanced sector allocation could reduce volatility and improve overall portfolio resilience. Exploring underrepresented sectors such as healthcare or utilities might provide additional stability and growth potential.

Regions Info

  • North America
    56%
  • Europe Developed
    16%
  • Asia Developed
    11%
  • Asia Emerging
    8%
  • Japan
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

The portfolio has significant exposure to North America, comprising over 55% of the geographic allocation. This focus on developed markets, particularly the U.S., offers stability but may limit exposure to emerging market growth. The remaining geographic allocation is spread across Europe and Asia, providing some international diversification. To capitalize on global growth opportunities, consider increasing exposure to emerging markets, which can offer higher potential returns and further diversify geographic risk.

Redundant positions Info

  • Vanguard S&P 500 Growth Index Fund ETF Shares
    Invesco NASDAQ 100 ETF
    High correlation

The portfolio includes highly correlated assets, particularly the Vanguard S&P 500 Growth Index Fund ETF Shares and Invesco NASDAQ 100 ETF. High correlation means these assets tend to move in the same direction, reducing diversification benefits. This can increase portfolio risk during market downturns. To improve diversification, consider replacing or reducing allocations in correlated assets with those that have lower correlations. This can help achieve a more balanced risk-return profile and enhance portfolio resilience.

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 can be optimized using the Efficient Frontier concept, which aims to achieve the best possible risk-return ratio. Currently, the presence of highly correlated assets suggests room for improvement in diversification. By reallocating within existing assets, you can potentially increase returns without adding risk. This involves finding the right mix of assets that maximizes returns for a given level of risk. Consider using optimization tools or consulting with a financial advisor to explore reallocation strategies that align with your financial goals.

Dividends Info

  • iShares Asia 50 ETF 1.90%
  • iShares MSCI Europe Small-Cap ETF 3.20%
  • Invesco NASDAQ 100 ETF 0.60%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.60%
  • Vanguard Total International Stock Index Fund ETF Shares 3.00%
  • Weighted yield (per year) 1.38%

The portfolio yields an average dividend of 1.38%, with the iShares MSCI Europe Small-Cap ETF offering the highest yield at 3.2%. Dividends provide a steady income stream and can enhance total returns, especially in volatile markets. However, the portfolio's focus on growth stocks results in relatively low dividend yields. To boost income, consider increasing allocations to higher-yielding assets or dividend-focused ETFs. This can provide a more balanced approach to growth and income generation.

Ongoing product costs Info

  • iShares Asia 50 ETF 0.50%
  • iShares Bitcoin Trust 0.12%
  • iShares MSCI Europe Small-Cap ETF 0.42%
  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.10%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.20%

The total expense ratio (TER) of the portfolio is 0.2%, which is relatively low and beneficial for long-term investors. Lower costs mean more of the investment returns are retained, compounding over time. However, the iShares Asia 50 ETF has a higher expense ratio of 0.5%, which could be reduced by exploring lower-cost alternatives. Regularly reviewing and minimizing investment costs can significantly enhance net returns. Consider reallocating to more cost-effective options without compromising on diversification or growth potential.

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