Balanced and highly diversified portfolio with a strong focus on technology and global equities

Report created on Aug 4, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio boasts a strategic blend of asset classes, with a predominant allocation towards stocks (86%) and a moderate inclusion of bonds (10%). The presence of a small but significant portion allocated to 'Other' assets, including commodities like gold, and a minimal cash holding, suggests a well-considered approach to diversification. The mix of ETFs and a single common stock position indicates a preference for broad market exposure while still seeking specific income opportunities.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 14.87% and a maximum drawdown of -16.19%, the portfolio demonstrates a robust performance history. The days contributing to 90% of returns highlight the impact of significant market movements on portfolio gains. This performance, especially the resilience in drawdown periods, is indicative of the portfolio's balanced risk profile and diversified asset allocation.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of possible portfolio outcomes, suggest a wide dispersion of potential future values. With 997 out of 1,000 simulations yielding positive returns, the projections underscore the portfolio's strong potential for growth. However, it's crucial to remember that these simulations are based on past trends, which may not always predict future performance accurately.

Asset classes Info

  • Stocks
    86%
  • Bonds
    10%
  • Other
    3%
  • Cash
    1%

The portfolio's asset class distribution underlines a strategy focused on growth through equities while maintaining a cushion through bonds and alternative investments like gold. This allocation aligns with a balanced risk profile, aiming to capture upside potential in stock markets globally while mitigating volatility through fixed-income securities and commodities.

Sectors Info

  • Technology
    24%
  • Financials
    12%
  • Consumer Discretionary
    10%
  • Industrials
    9%
  • Telecommunications
    7%
  • Health Care
    7%
  • Basic Materials
    5%
  • Consumer Staples
    5%
  • Real Estate
    5%
  • Energy
    3%
  • Utilities
    2%

Sector allocation reveals a significant tilt towards technology, financial services, and consumer cyclicals, reflecting a growth-oriented strategy. However, this focus may introduce sector-specific risks, particularly in technology, where valuations can be more volatile. Diversifying across a broader range of sectors could help smooth out returns over time.

Regions Info

  • North America
    63%
  • Europe Developed
    7%
  • Asia Emerging
    7%
  • Asia Developed
    3%
  • Japan
    3%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Australasia
    1%

Geographic distribution shows a heavy emphasis on North American equities, complemented by meaningful exposure to developed and emerging markets globally. This geographical spread enhances the portfolio's diversification, reducing the impact of regional economic downturns. However, the current allocation may benefit from a closer examination of emerging market exposure to leverage growth opportunities in these regions.

Market capitalization Info

  • Mega-cap
    32%
  • Large-cap
    27%
  • Mid-cap
    17%
  • Small-cap
    7%
  • No data
    3%
  • Micro-cap
    2%

The portfolio's market capitalization breakdown, with a lean towards mega and big cap stocks, suggests a preference for established, less volatile companies. While this may contribute to stability, incorporating a larger share of medium, small, or micro-cap stocks could offer higher growth potential, albeit with increased risk.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Invesco QQQ Trust
    High correlation

The identified correlation between the Vanguard S&P 500 ETF and Invesco QQQ Trust indicates overlapping exposure, particularly to large-cap technology stocks. This redundancy could limit the portfolio's diversification benefits, especially during tech sector downturns. Reducing overlap by reallocating assets could enhance the portfolio's overall risk-adjusted performance.

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.

Optimizing the portfolio along the Efficient Frontier could further enhance the risk-return profile. Currently, the presence of highly correlated assets suggests room for improvement in diversification. By adjusting allocations to reduce overlap and better balance the asset classes and sectors, the portfolio could achieve a more efficient distribution of risk and potential return.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.50%
  • Realty Income Corporation 5.20%
  • Invesco QQQ Trust 0.50%
  • SHP ETF Trust - NEOS S&P 500 High Income ETF 12.20%
  • Vanguard Materials Index Fund ETF Shares 1.70%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.80%
  • Vanguard Extended Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Vanguard High Dividend Yield Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 2.44%

The portfolio's dividend yield strategy, with an average yield of 2.44%, combines growth and income elements. High-income ETFs, alongside dividend-yielding stocks and bonds, provide a steady income stream. This approach balances the pursuit of capital appreciation with the generation of passive income, suitable for investors seeking both growth and cash flow.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • iShares Gold Trust 0.25%
  • Invesco QQQ Trust 0.20%
  • SHP ETF Trust - NEOS S&P 500 High Income ETF 0.68%
  • Vanguard Materials Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Vanguard Extended Market Index Fund ETF Shares 0.06%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Vanguard High Dividend Yield Index Fund ETF Shares 0.06%
  • Weighted costs total (per year) 0.11%

The portfolio's total expense ratio (TER) of 0.11% is impressively low, maximizing the potential for net returns. Keeping costs low is crucial for long-term investment success, as even small differences in fees can significantly impact cumulative returns. This cost efficiency is a strong aspect of the portfolio's construction.

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