Balanced portfolio with a strong tilt towards technology and global diversification

Report created on Jul 29, 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 structured around three ETFs, focusing heavily on the stock market with a 40% allocation to both the Vanguard Total Stock Market Index Fund ETF Shares and the Vanguard Total International Stock Index Fund ETF Shares, and a 20% allocation to the Invesco NASDAQ 100 ETF. This composition suggests a balanced approach with a broad diversification across geographic regions and sectors, though it leans significantly towards stocks, which indicates a moderate risk tolerance. The inclusion of a significant portion of international stocks enhances global exposure, mitigating the risk of home-country bias.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 13.25%, with a maximum drawdown of -28.30%. The days contributing most to returns are relatively few, indicating that the portfolio's performance is subject to significant short-term fluctuations. However, the overall high CAGR compared to the drawdown suggests that the portfolio has managed to recover and grow robustly over time. This performance needs to be contextualized within market conditions during the period analyzed, as past performance is not a reliable indicator of future results.

Projection Info

Monte Carlo simulations, which use historical data to project potential future outcomes, indicate a wide range of possible performances for this portfolio. With most simulations showing positive returns and a median projected increase of 479.6%, the portfolio appears well-positioned for growth. However, it's important to note that such projections have limitations and cannot account for unforeseen market shifts or global economic changes.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The asset allocation is heavily skewed towards stocks (99%), with a minimal cash reserve (1%). This allocation underscores a growth-oriented strategy but comes with higher volatility and risk compared to portfolios with a more significant allocation to bonds or other asset classes. For investors looking for growth while maintaining a balanced risk profile, this heavy equity exposure is appropriate, though it may not suit those with a lower risk tolerance or nearing retirement.

Sectors Info

  • Technology
    28%
  • Financials
    15%
  • Consumer Discretionary
    11%
  • Industrials
    11%
  • Telecommunications
    9%
  • Health Care
    8%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%

With technology (28%) being the most significant sectoral allocation, followed by financial services (15%) and consumer cyclicals (11%), the portfolio is positioned to benefit from the growth in these dynamic sectors. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or economic cycles affecting these industries more than others. Diversifying across more sectors or reducing the weight in technology could mitigate such risks.

Regions Info

  • North America
    63%
  • Europe Developed
    16%
  • Asia Emerging
    6%
  • Japan
    6%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic distribution is well-diversified, with a strong emphasis on North America (63%) but significant exposure to developed Europe (16%) and emerging Asian markets (6%). This global spread helps reduce the impact of regional downturns but introduces currency and geopolitical risks. Investors should consider if the current geographic allocation aligns with their comfort with these risks.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    31%
  • Mid-cap
    17%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown, with a focus on mega (45%) and big (31%) cap stocks, suggests a preference for established, large companies likely to offer stability and steady growth. However, the relatively lower allocation to medium, small, and micro caps limits potential high-growth opportunities these segments might present. Balancing this allocation could enhance growth prospects while adding volatility.

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 Efficient Frontier, this portfolio appears well-optimized for a balance between risk and return based on its current assets and allocations. However, continuous monitoring and rebalancing are essential to maintain this optimization, especially as market conditions and the investor's financial goals evolve. Adjustments may be needed to ensure the portfolio remains aligned with the desired risk-return profile.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.70%

The overall dividend yield of 1.70% contributes to the portfolio's total return, providing a steady income stream in addition to potential capital gains. The varying yields across the ETFs, with the international fund offering the highest yield, indicate a strategic allocation that balances growth with income generation. Investors should consider their income needs and tax implications when evaluating this aspect of their portfolio.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.06%

With a total expense ratio (TER) of 0.06%, the portfolio is cost-efficient, which is crucial for maximizing long-term returns. Lower costs mean more of the investment's return is retained by the investor. Especially in a low-yield environment, keeping costs low is an effective strategy for enhancing portfolio performance.

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