A tech-heavy balanced portfolio with a strong focus on US equities and low costs

Report created on Nov 8, 2025

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 heavily weighted towards US equities, with a 50% allocation in the Vanguard S&P 500 ETF and a 30% allocation in the Invesco NASDAQ 100 ETF. The remaining 20% is invested in the Vanguard Total International Stock Index Fund ETF Shares, providing some international exposure. This composition indicates a clear preference for large-cap, technology-oriented companies, given the significant weight in the NASDAQ 100 ETF. The portfolio's diversification is broad but leans heavily towards the technology sector, which could affect its volatility and performance depending on market conditions.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 15.28%, with a maximum drawdown of -28.12%. This performance is impressive, particularly the high CAGR, which suggests strong growth potential. However, the significant drawdown indicates periods of high volatility, likely due to the portfolio's heavy allocation to the technology sector. These figures should be viewed in the context of the portfolio's risk score of 4 out of 7, suggesting a balanced but not overly conservative risk appetite.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. The 50th percentile outcome suggests a potential increase of 561.2% in value, indicating strong growth potential. However, it's important to note that such projections have limitations and cannot guarantee future performance. These simulations offer a glimpse into possible futures, emphasizing the importance of being prepared for a range of outcomes.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's assets are almost entirely in stocks (99%), with a minimal cash holding (1%). This allocation supports the portfolio's growth-oriented strategy but also increases its susceptibility to market volatility. Given the portfolio's risk score, this allocation seems appropriate, but investors should be aware of the potential for significant fluctuations in value, particularly in market downturns.

Sectors Info

  • Technology
    37%
  • Consumer Discretionary
    11%
  • Financials
    11%
  • Telecommunications
    11%
  • Industrials
    8%
  • Health Care
    7%
  • Consumer Staples
    5%
  • Basic Materials
    3%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    2%

The sector allocation underscores a heavy emphasis on technology (37%), followed by consumer cyclicals, financial services, and communication services, each at 11%. This concentration in tech and growth-oriented sectors suggests the portfolio is positioned to capitalize on digital economy growth. However, such concentration also increases risk, as these sectors can be more volatile than more defensive sectors like utilities or consumer staples.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is predominantly invested in North America (81%), with modest exposure to developed Europe (8%) and emerging Asia (3%), among others. This heavy domestic bias towards the US market reflects confidence in the US economy but also limits global diversification. Expanding international exposure could offer benefits, particularly in diversifying risk and tapping into growth opportunities in emerging markets.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    33%
  • Mid-cap
    16%
  • Small-cap
    1%

The portfolio's market capitalization breakdown reveals a strong focus on mega (48%) and big (33%) cap stocks, with lesser exposure to medium (16%) and small (1%) cap stocks. This tilt towards larger companies is consistent with the portfolio's emphasis on stability and growth, as these companies often have more established business models. However, incorporating more small and medium-cap stocks could enhance diversification and potentially offer higher growth rates.

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.

Considering the portfolio's current composition and performance metrics, there's potential for optimization towards the Efficient Frontier, which could offer a better risk-return ratio. This might involve adjusting the asset allocation to include more non-correlated assets or rebalancing sector and geographic exposures. Such optimization would aim to maintain or enhance returns while potentially reducing volatility, aligning the portfolio more closely with the investor's risk tolerance and investment goals.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.26%

The portfolio's dividend yield stands at 1.26%, with the highest yield coming from the Vanguard Total International Stock Index Fund ETF Shares at 2.80%. While the portfolio's focus seems to be more on growth than income, dividends contribute to total returns and provide a modest income stream. For investors seeking higher income, rebalancing towards assets with higher dividend yields could be considered, keeping in mind the potential trade-off with growth prospects.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.07%

The portfolio benefits from low costs, with a total expense ratio (TER) of 0.07%. This efficiency is crucial for long-term growth, as lower costs directly translate to higher net returns. The choice of low-cost ETFs is commendable and aligns with best practices in portfolio management, ensuring that investors keep more of their returns.

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