A balanced portfolio with strong US focus and moderate international diversification

Report created on Apr 25, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is predominantly composed of ETFs, with a significant allocation of 65.22% to the Vanguard S&P 500 ETF. The Vanguard Total International Stock Index Fund ETF makes up 19.57%, while the Schwab U.S. Dividend Equity ETF accounts for 15.22%. This composition highlights a strong tilt towards U.S. equities, with a moderate international exposure. A balanced portfolio structure like this aims for growth while maintaining some level of diversification. It's essential to periodically review the allocation to ensure it aligns with your evolving financial goals and market conditions.

Growth Info

Historically, this portfolio has delivered a robust CAGR of 11.41%, indicating strong growth over time. However, it has experienced a maximum drawdown of -33.72%, suggesting vulnerability during market downturns. The portfolio's performance is comparable to the broader market, as it closely tracks the S&P 500 index. Understanding past performance helps set realistic expectations, but remember that past results don't guarantee future returns. Regularly revisiting performance metrics can help you identify trends and adjust your strategy as needed.

Projection Info

The Monte Carlo simulation, which uses historical data to project potential future outcomes, indicates an annualized return of 11.00% across 1,000 simulations. The median projection shows a potential portfolio value increase of 249.7%. While these projections provide a range of possible outcomes, they are not predictions. They help illustrate the variability of returns and the importance of diversification in managing risk. Consider using these insights to gauge your comfort level with potential future scenarios.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is heavily weighted towards stocks, with 99% in equities and just 1% in cash. This allocation suggests a focus on growth, but it may expose the portfolio to higher volatility. Diversification across asset classes can help manage risk and smooth returns. While this portfolio is broadly diversified within equities, introducing other asset classes like bonds or real estate might enhance stability, especially during market fluctuations.

Sectors Info

  • Technology
    24%
  • Financials
    15%
  • Health Care
    11%
  • Consumer Discretionary
    10%
  • Industrials
    10%
  • Consumer Staples
    8%
  • Telecommunications
    8%
  • Energy
    6%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

The sector allocation is diverse, with a notable 24% in technology, followed by financial services and healthcare. This sector mix aligns well with common benchmarks, offering exposure to various economic segments. However, the technology sector's weighting could lead to increased volatility, especially during interest rate changes. Regularly assess sector trends and consider rebalancing if one sector becomes overly dominant, potentially impacting the portfolio's risk profile.

Regions Info

  • North America
    82%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is heavily skewed towards North America, with 82% exposure. Europe and Asia provide some diversification, but emerging markets are underrepresented. While U.S. markets have performed well, global diversification can reduce risk by spreading investments across different economic environments. Consider increasing international exposure, particularly in emerging markets, to potentially capture growth opportunities outside North America.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    36%
  • Mid-cap
    20%
  • Small-cap
    2%

The portfolio's market capitalization distribution is heavily tilted towards mega-cap stocks at 41%, followed by large and medium caps. This allocation provides stability and growth potential, as larger companies often have established market positions. However, smaller companies can offer higher growth prospects, albeit with more risk. Balancing exposure across market caps can enhance diversification and capture opportunities across various company sizes.

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.

The portfolio could potentially be optimized using the Efficient Frontier, which identifies the best possible risk-return ratio for a given set of assets. While the current allocation is well-balanced, exploring slight adjustments in asset weights might enhance efficiency. This optimization focuses on maximizing returns for a given level of risk, helping you achieve your financial goals more effectively. Regularly reassessing the portfolio's position on the Efficient Frontier can ensure it remains aligned with your risk tolerance.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 4.00%
  • Vanguard S&P 500 ETF 1.40%
  • Vanguard Total International Stock Index Fund ETF Shares 3.10%
  • Weighted yield (per year) 2.13%

The portfolio's total dividend yield is 2.13%, with the Schwab U.S. Dividend Equity ETF contributing a significant 4.00%. Dividends can provide a steady income stream and are particularly valuable in volatile markets. For income-focused investors, maintaining or increasing dividend exposure can enhance cash flow. Regularly reviewing dividend yields and the sustainability of payouts is essential to ensure they align with your income goals.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

The portfolio's total expense ratio (TER) is impressively low at 0.04%, reflecting cost-efficient ETF selections. Lower costs contribute positively to long-term returns by minimizing the drag on performance. This efficient cost structure aligns with best practices in portfolio management. Regularly reviewing and minimizing costs can further enhance net returns, ensuring more of your investment gains are retained.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey