A balanced and broadly diversified portfolio with a focus on stocks and global exposure

Report created on Aug 20, 2025

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

Positions

The portfolio is entirely allocated to the American Century ETF Trust, offering a broad diversification across nine sectors, emphasizing financial services, industrials, and consumer cyclicals. This single-ETF strategy simplifies portfolio management but places significant reliance on the fund's performance and sector allocation strategy. While the diversification across sectors is commendable, the sole dependence on one ETF may expose the portfolio to specific fund-related risks, such as management strategy shifts or sectoral underperformance.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 16.98% and a maximum drawdown of -17.05%, the portfolio has demonstrated robust growth with relatively moderate fluctuations. The days contributing to 90% of returns being limited to 12.0 indicate that the portfolio's performance has been significantly impacted by a few strong market days. This historical performance suggests a well-managed risk-return balance, though investors should be mindful that past performance is not indicative of future results.

Projection Info

Monte Carlo simulations, utilizing 1,000 scenarios, project a wide range of outcomes with a median increase of 848.7%. This method, while based on historical data, helps in understanding potential future volatility and the distribution of returns. However, it's crucial to remember that these projections cannot guarantee future performance and should be viewed as one of many tools in investment decision-making.

Asset classes Info

  • Stocks
    99%

The portfolio's allocation is heavily skewed towards stocks (99%), with a minimal cash holding. This high equity exposure aligns with the portfolio's balanced risk classification but leans towards a growth-oriented strategy. While equities offer higher potential returns, they also come with increased volatility. Investors should ensure this level of stock concentration aligns with their risk tolerance and investment horizon.

Sectors Info

  • Financials
    22%
  • Industrials
    17%
  • Consumer Discretionary
    17%
  • Energy
    11%
  • Technology
    7%
  • Basic Materials
    7%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Health Care
    5%
  • Utilities
    1%
  • Real Estate
    1%

Sector allocation is diversified, with significant investments in financial services, industrials, and consumer cyclicals. This sector spread can provide a hedge against market volatility, as different sectors react differently to economic changes. However, the relatively lower allocation to technology and healthcare, sectors known for innovation and growth, may limit potential gains from these dynamic areas.

Regions Info

  • North America
    64%
  • Europe Developed
    14%
  • Japan
    7%
  • Asia Emerging
    5%
  • Asia Developed
    5%
  • Australasia
    2%
  • Latin America
    2%
  • Africa/Middle East
    1%

Geographic allocation is well-diversified with a strong focus on North America (64%) and decent exposures to developed Europe and Japan. While this provides a good balance between developed markets' stability and growth potential, the relatively low allocation to emerging markets may limit exposure to higher growth opportunities available in these regions.

Market capitalization Info

  • Mid-cap
    30%
  • Large-cap
    20%
  • Small-cap
    19%
  • Mega-cap
    17%
  • Micro-cap
    9%

The market capitalization spread includes a mix of medium, big, small, mega, and micro-cap stocks. This diversity helps in balancing the growth potential of smaller companies with the stability of larger firms. However, the specific allocations suggest a moderate risk appetite, as larger companies tend to be less volatile than their smaller counterparts.

Dividends Info

  • American Century ETF Trust 2.20%
  • Weighted yield (per year) 2.20%

With a total dividend yield of 2.20%, the portfolio provides a steady income stream, contributing to total returns. This yield, while not the highest, strikes a balance between income and growth, suitable for investors looking for a mix of stability and potential capital appreciation.

Ongoing product costs Info

  • American Century ETF Trust 0.26%
  • Weighted costs total (per year) 0.26%

The Total Expense Ratio (TER) of 0.26% is impressively low, especially for a broadly diversified ETF. Lower costs translate to better net returns over the long term, making this an efficient choice for cost-conscious investors. Keeping costs low is crucial in maximizing investment growth, particularly in balanced portfolios where the objective is steady, long-term gains.

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