Balanced and broadly diversified portfolio with a focus on growth and income

Report created on Jul 18, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio exhibits a balanced mix of equity ETFs and a single common stock, leading to a broadly diversified asset allocation. The significant weighting in the Vanguard S&P 500 ETF, complemented by international, dividend-focused, and technology-oriented ETFs, provides a comprehensive exposure to various sectors and geographies. This structure suggests a strategic balance between seeking growth through broad market and technology investments and generating income via dividends, especially notable in the choices of high-dividend ETFs and Realty Income Corporation.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.17%, with a maximum drawdown of -17.10%. The days contributing most significantly to returns are relatively few, indicating that performance peaks have been pivotal to overall gains. When compared to benchmarks, this performance suggests the portfolio has navigated market volatility effectively, leveraging growth periods while maintaining a resilience against downturns. This historical performance, while encouraging, should be viewed as one indicator among many for future potential.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 290%. This method, using historical data to simulate future scenarios, helps illustrate potential volatility and returns. However, it's crucial to remember that these projections are speculative, emphasizing the portfolio's capability to generate positive returns in most simulations. Investors should use this data as a guide rather than a guarantee, considering market unpredictability.

Asset classes Info

  • Stocks
    97%
  • No data
    3%

The portfolio's allocation is heavily skewed towards stocks (97%), with a minor portion not classified (3%). This high equity exposure aligns with the portfolio's balanced risk profile, aiming for growth while accepting moderate volatility. However, the absence of fixed-income assets or alternative investments might limit diversification benefits, especially during market downturns when non-equity assets can offer stability.

Sectors Info

  • Technology
    28%
  • Real Estate
    11%
  • Consumer Discretionary
    10%
  • Financials
    10%
  • Telecommunications
    9%
  • Health Care
    8%
  • Industrials
    8%
  • Consumer Staples
    7%
  • Energy
    5%
  • Basic Materials
    2%
  • Utilities
    2%

Sector distribution is well-rounded, with a strong emphasis on technology, real estate, and consumer cyclicals. This sectoral allocation supports the portfolio's growth objectives, given technology's potential for innovation-driven expansion and real estate's income-generating properties. However, the concentration in these sectors might expose the portfolio to sector-specific risks, such as regulatory changes or economic cycles affecting consumer spending.

Regions Info

  • North America
    85%
  • Europe Developed
    6%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is predominantly invested in North America (85%), with modest allocations across developed and emerging markets. This North American focus capitalizes on the stability and growth potential of the U.S. economy but may underrepresent the diversification and growth opportunities available in international markets. Expanding international exposure could enhance global diversification and potentially mitigate region-specific risks.

Market capitalization Info

  • Large-cap
    43%
  • Mega-cap
    36%
  • Mid-cap
    16%
  • Small-cap
    2%

Market capitalization exposure leans towards big (43%) and mega (36%) cap stocks, with lesser allocations to medium and small caps. This bias towards larger companies may contribute to stability and reduced volatility, given their established market positions. However, incorporating a broader mix, including more small and medium-cap investments, could introduce higher growth potential and further diversification benefits.

Redundant positions Info

  • JPMorgan Nasdaq Equity Premium Income ETF
    Invesco NASDAQ 100 ETF
    Vanguard S&P 500 ETF
    High correlation

The portfolio shows high correlation among certain assets, particularly between the JPMorgan Nasdaq Equity Premium Income ETF, Invesco NASDAQ 100 ETF, and Vanguard S&P 500 ETF. This redundancy suggests that despite a nominally diversified appearance, the portfolio may not be as diversified in practice. Reducing overlap could enhance the portfolio's ability to withstand market fluctuations by spreading risk more effectively across uncorrelated investments.

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.

Optimization efforts should initially focus on addressing the high correlation among certain ETFs, which currently limits the portfolio's diversification benefits. By reallocating funds from overlapping assets to less correlated ones, the portfolio could achieve a more efficient risk-return profile. This approach aligns with the Efficient Frontier concept, aiming to maximize returns for a given level of risk by optimizing asset allocation. However, it's essential to maintain a balance between reducing overlap and preserving the portfolio's growth and income objectives.

Dividends Info

  • iShares Core MSCI Total International Stock ETF 3.00%
  • JPMorgan Nasdaq Equity Premium Income ETF 11.30%
  • Realty Income Corporation 5.70%
  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 3.76%

Dividend yields across the portfolio vary, contributing to a total yield of 3.76%. This emphasis on income through dividends complements the growth strategy, providing a steady income stream. The high yield from the JPMorgan ETF and Realty Income Corporation, in particular, highlights the portfolio's capacity to generate cash flow, which can be advantageous for investors seeking regular income alongside capital appreciation.

Ongoing product costs Info

  • iShares Core MSCI Total International Stock ETF 0.07%
  • JPMorgan Nasdaq Equity Premium Income ETF 0.35%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.10%

The portfolio's total expense ratio (TER) averages to 0.10%, indicating efficient cost management. Low costs are crucial for long-term investment success, as they directly enhance net returns. This portfolio benefits from selecting low-cost ETFs, particularly notable in the Vanguard S&P 500 ETF's exceptionally low fee. Keeping costs minimal is a sound strategy, allowing more of the investment's return to compound over time.

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