This portfolio has only about 7.4 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.

Moderately Diversified Growth Portfolio with Strong Technology and Consumer Cyclicals Focus

Report created on Jul 28, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is composed predominantly of ETFs and common stocks, with a significant concentration in large-cap tech companies and growth-oriented sectors. The top holdings include the SPDR S&P 500 ETF Trust, Amazon, and VanEck Semiconductor ETF. This setup suggests a strong inclination towards growth and market leaders, which can potentially offer high returns but also come with higher volatility. To balance the risk, incorporating more defensive assets or bonds could be beneficial for long-term stability.

Growth Info

Historically, this portfolio has shown impressive performance with a CAGR of 21.5%. However, it has also experienced significant drawdowns, with a maximum drawdown of -37.53%. This high volatility indicates that while the portfolio can generate substantial returns, it is also susceptible to sharp declines. Investors should be prepared for these fluctuations and consider whether they can tolerate such volatility over their investment horizon.

Projection Info

Using Monte-Carlo simulation, which runs multiple scenarios to predict future performance, this portfolio shows a wide range of potential outcomes. With a hypothetical initial investment, the 50th percentile projection is 1,190.72%, indicating a strong median growth potential. However, the 5th percentile is 76.91%, suggesting that in a worst-case scenario, the returns could be much lower. Diversifying further could help mitigate some of these risks.

Asset classes Info

  • Stocks
    100%

The portfolio is overwhelmingly invested in stocks, with 99.93% allocated to equities and a negligible amount in cash. This heavy equity exposure aligns with a growth-oriented strategy but also increases risk. To reduce volatility, consider adding bonds or other fixed-income assets, which can provide more stability and income, especially during market downturns.

Sectors Info

  • Technology
    29%
  • Consumer Discretionary
    19%
  • Health Care
    14%
  • Industrials
    10%
  • Telecommunications
    10%
  • Consumer Staples
    9%
  • Financials
    4%
  • Basic Materials
    3%
  • Energy
    2%
  • Utilities
    1%

The sector allocation is heavily weighted towards Technology (29.38%) and Consumer Cyclicals (19.34%), followed by Healthcare (13.62%) and Industrials (9.89%). While these sectors can drive high returns during economic growth, they can also be more volatile. Introducing more exposure to defensive sectors like Consumer Defensive and Utilities could help balance the portfolio and provide more consistent returns.

Regions Info

  • North America
    96%
  • Europe Developed
    2%
  • Asia Developed
    1%

Geographically, the portfolio is highly concentrated in North America, with 95.98% of assets allocated there. This lack of international diversification can expose the portfolio to regional risks. Diversifying into more international markets, including Europe and Asia, can help spread risk and potentially capture growth opportunities in other economies.

Dividends Info

  • Apple Inc 0.40%
  • Alphabet Inc Class C 0.10%
  • iShares US Consumer Staples ETF 2.70%
  • Johnson & Johnson 3.00%
  • Legg Mason International Low Volatility High Dividend ETF 6.60%
  • Meta Platforms Inc. 0.20%
  • VanEck Morningstar Wide Moat ETF 0.80%
  • Microsoft Corporation 0.70%
  • Global X U.S. Infrastructure Development ETF 0.60%
  • Invesco QQQ Trust 0.60%
  • Schwab U.S. Dividend Equity ETF 3.50%
  • VanEck Semiconductor ETF 0.40%
  • SPDR S&P 500 ETF Trust 1.30%
  • Health Care Select Sector SPDR® Fund 1.50%
  • Weighted yield (per year) 1.07%

The portfolio has a mix of dividend-paying ETFs and stocks, contributing to a modest dividend yield. While growth stocks often reinvest earnings rather than pay dividends, adding more high-dividend stocks or ETFs can provide a steady income stream and reduce reliance on capital appreciation for returns.

Ongoing product costs Info

  • iShares US Consumer Staples ETF 0.40%
  • Legg Mason International Low Volatility High Dividend ETF 0.40%
  • VanEck Morningstar Wide Moat ETF 0.47%
  • Global X U.S. Infrastructure Development ETF 0.47%
  • Invesco QQQ Trust 0.20%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • VanEck Semiconductor ETF 0.35%
  • SPDR S&P 500 ETF Trust 0.10%
  • Health Care Select Sector SPDR® Fund 0.09%
  • Weighted costs total (per year) 0.17%

The total expense ratio (TER) of the portfolio is 0.17%, which is relatively low and indicates cost-efficiency. Keeping investment costs low is crucial as high fees can erode returns over time. Regularly reviewing and potentially shifting to lower-cost funds can help maintain this cost advantage while ensuring that the portfolio remains aligned with investment goals.

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