A balanced portfolio with high exposure to ETFs and a focus on growth and dividends

Report created on Aug 20, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

The portfolio is predominantly composed of ETFs, with a significant portion allocated to the American Century ETF Trust and the WisdomTree Efficient Gold Plus Equity Strategy Fund, alongside a smaller allocation to the Fidelity Money Market Fund. This structure indicates a strategic focus on growth through stocks and a hedge against market volatility with gold and cash equivalents. The heavy reliance on ETFs simplifies diversification within the selected sectors and asset classes, though the portfolio is classified as single-focused due to its concentration in specific areas.

Growth Info

Historically, the portfolio has demonstrated impressive growth with a Compound Annual Growth Rate (CAGR) of 23.93%. The maximum drawdown of -12.44% suggests resilience during market downturns, attributed to the portfolio's diversified ETF structure and the stabilizing presence of gold and cash equivalents. The performance is notably anchored by days that significantly outperformed, indicating that while the portfolio has high growth potential, it also carries risk tied to market volatility.

Projection Info

Forward projections, based on a Monte Carlo simulation, forecast a wide range of outcomes with a median increase of 1,736.2%. This analysis, while optimistic, is grounded in historical data, emphasizing that past performance is not always indicative of future results. Such projections are useful for planning but should be approached with caution, as they cannot account for unforeseen market shifts.

Asset classes Info

  • Stocks
    87%
  • Other
    3%

The portfolio's asset allocation leans heavily towards stocks (87%), with a minor allocation to other non-specified assets (3%) and a notable absence of bonds. This allocation underscores a growth-oriented strategy at the expense of potential income from bonds or the risk mitigation they offer. Adjusting this mix could enhance risk management without significantly detracting from the portfolio's growth potential.

Sectors Info

  • Financials
    19%
  • Technology
    14%
  • Industrials
    13%
  • Consumer Discretionary
    12%
  • Basic Materials
    8%
  • Telecommunications
    7%
  • Energy
    6%
  • Health Care
    6%
  • Consumer Staples
    4%
  • Utilities
    2%
  • Real Estate
    2%

Sector diversification is broad, spanning financial services, technology, industrials, and consumer cyclicals as the top holdings. This spread mitigates sector-specific risks but also reflects a bias towards cyclical sectors that may be more sensitive to economic cycles. Diversifying into more defensive sectors could provide stability during market downturns.

Regions Info

  • North America
    30%

Geographic exposure is concentrated in North America (30%), with no allocations to Europe, Latin America, or Asia. This geographic concentration increases exposure to regional economic and political risks. Expanding into developed and emerging markets outside North America could enhance diversification and potentially tap into higher growth rates in other regions.

Market capitalization Info

  • Mega-cap
    26%
  • Large-cap
    25%
  • Mid-cap
    22%
  • Small-cap
    6%
  • Micro-cap
    1%

The portfolio's market capitalization exposure is well-distributed among mega, big, and medium-sized companies, with lesser allocations to small and micro-cap stocks. This distribution suggests a balanced approach to risk and return, as larger companies typically offer stability, while smaller companies provide growth potential. Considering a slight increase in small and micro-cap allocations could enhance growth prospects.

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.

Despite the portfolio's strong historical performance, optimization analysis suggests there is room for improvement in achieving a more efficient risk-return balance. An optimal portfolio with an expected return of 6.35% at a lower risk level indicates potential adjustments in asset allocation could yield better outcomes. Rebalancing towards this more efficient frontier could enhance returns while managing risk more effectively.

Dividends Info

  • American Century ETF Trust 3.30%
  • Fidelity Money Market Fund 3.70%
  • WisdomTree Efficient Gold Plus Equity Strategy Fund 5.50%
  • Weighted yield (per year) 4.00%

The dividend yields across the portfolio components contribute significantly to its overall return, with a total yield of 4.00%. This emphasis on dividends supports income generation, complementing capital gains as a source of total return. Maintaining or slightly increasing exposure to high-dividend-yielding assets could further enhance income without substantially increasing risk.

Ongoing product costs Info

  • American Century ETF Trust 0.34%
  • WisdomTree Efficient Gold Plus Equity Strategy Fund 0.20%
  • Weighted costs total (per year) 0.26%

The portfolio's total expense ratio (TER) of 0.26% is relatively low, enhancing net returns. Keeping costs minimized is crucial for long-term growth, as even small differences in fees can have a significant impact over time. The current cost structure is commendable and should be maintained.

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