This portfolio has only about 10 years 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.

Balanced Portfolio with Broad Diversification and Moderate Risk

Report created on Jul 26, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is well-diversified with a balanced risk profile. It includes 30% in SPDR S&P 500 ETF Trust, 30% in Vanguard FTSE All-World ex-US Index Fund ETF Shares, 20% in Procter & Gamble Company, and 20% in Utilities Select Sector SPDR Fund. This mix of ETFs and common stock offers exposure to both U.S. and international markets, along with a solid allocation to defensive sectors like consumer goods and utilities. This composition helps mitigate risk while providing potential for steady growth.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 9.4%, which is quite robust. However, it also experienced a maximum drawdown of -31.43%, indicating significant volatility during market downturns. The fact that 90% of returns were generated in just 22 days highlights the importance of staying invested to capture these high-return periods. This performance suggests that while the portfolio can generate good returns, it can also be subject to notable fluctuations.

Projection Info

Using a Monte Carlo simulation with 1,000 iterations, the portfolio shows a range of potential future outcomes. The 5th percentile projects a return of 6.51%, while the median (50th percentile) projects 250.39%, and the 67th percentile projects 375.95%. The annualized return across all simulations is 10.9%, indicating a favorable outlook. This simulation helps illustrate the potential variability in future performance and underscores the importance of preparing for different market scenarios.

Asset classes Info

  • Stocks
    100%

The portfolio is heavily weighted towards stocks, making up 99.89% of the total assets. There is a minimal allocation to cash (0.07%) and other categories (0.04%). This high concentration in equities suggests a focus on growth, but it also increases exposure to market volatility. To reduce risk, consider diversifying into other asset classes such as bonds or real estate, which can provide more stability and income during market downturns.

Sectors Info

  • Consumer Staples
    24%
  • Utilities
    22%
  • Technology
    13%
  • Financials
    12%
  • Industrials
    6%
  • Health Care
    6%
  • Consumer Discretionary
    6%
  • Telecommunications
    4%
  • Basic Materials
    3%
  • Energy
    3%
  • Real Estate
    1%

The sector allocation is fairly diverse, with significant investments in Consumer Defensive (23.72%) and Utilities (22.13%), followed by Technology (12.56%) and Financial Services (12.19%). This mix offers a good balance between defensive and growth-oriented sectors. However, the portfolio could benefit from a more even distribution across sectors to avoid overexposure to any single area. Rebalancing periodically can help maintain this balance and reduce sector-specific risks.

Regions Info

  • North America
    72%
  • Europe Developed
    11%
  • Japan
    4%
  • Asia Emerging
    4%
  • Europe Emerging
    3%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is predominantly invested in North America (71.67%), with smaller allocations to Europe Developed (11.01%), Japan (4.32%), and other regions. This heavy concentration in North America means the portfolio is highly sensitive to U.S. market conditions. Diversifying further into international markets can help mitigate regional risks and capture growth opportunities in other parts of the world.

Dividends Info

  • Procter & Gamble Company 2.30%
  • SPDR S&P 500 ETF Trust 1.30%
  • Vanguard FTSE All-World ex-US Index Fund ETF Shares 3.10%
  • Utilities Select Sector SPDR® Fund 3.10%
  • Weighted yield (per year) 2.40%

The portfolio includes dividend-paying stocks and ETFs, which can provide a steady income stream. However, the dividend yield is not specified, making it difficult to assess the income potential. Generally, dividend-paying assets can offer some downside protection and income stability, especially during market turbulence. To enhance the portfolio's income-generating potential, consider increasing the allocation to high-dividend stocks or dividend-focused ETFs.

Ongoing product costs Info

  • SPDR S&P 500 ETF Trust 0.10%
  • Vanguard FTSE All-World ex-US Index Fund ETF Shares 0.07%
  • Utilities Select Sector SPDR® Fund 0.09%
  • Weighted costs total (per year) 0.07%

The portfolio is cost-efficient with a total expense ratio (TER) of 0.07%. The individual expense ratios for SPDR S&P 500 ETF Trust, Vanguard FTSE All-World ex-US Index Fund ETF Shares, and Utilities Select Sector SPDR Fund are 0.1%, 0.07%, and 0.09%, respectively. Low costs are crucial for maximizing net returns over time. Keeping an eye on expense ratios and opting for low-cost investment options can significantly enhance long-term performance.

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