A growth-focused portfolio with a wide array of stocks and moderate diversification

Report created on Mar 28, 2025

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 of 96% common stocks and 4% other assets, primarily ETFs. Each position holds an equal weight of 1.85%, reflecting a strategy focused on minimizing individual stock risk. Compared to benchmark compositions, this portfolio is heavily stock-oriented with minimal exposure to other asset classes. This structure promotes growth but may increase volatility. Consider introducing more bonds or cash equivalents to balance risk, especially if market conditions become uncertain. This could provide a buffer against market downturns while maintaining growth potential.

Growth Info

Historically, the portfolio has demonstrated a strong Compound Annual Growth Rate (CAGR) of 20.31%, indicating robust performance. However, it has also experienced a significant maximum drawdown of -34.15%, suggesting vulnerability during market downturns. Compared to benchmarks, this performance is impressive, but the drawdown highlights potential risks. Understanding that past performance does not guarantee future results is crucial. Diversifying further or incorporating hedging strategies could help mitigate such drawdowns, ensuring more stable returns over time.

Projection Info

Forward projections using Monte Carlo simulations, which analyze potential future outcomes based on historical data, show an annualized return of 22.16%. While the median scenario suggests substantial growth, with a 50th percentile return of 864.8%, the 5th percentile indicates a much lower return of 25.7%. This showcases the range of possible outcomes. Remember, these simulations assume historical trends continue, which may not be the case. Consider stress-testing the portfolio under different scenarios to better prepare for varying market conditions.

Asset classes Info

  • Stocks
    96%
  • Other
    4%

The portfolio's allocation across asset classes heavily favors stocks, with 96% in equities and only 4% in other assets. This allocation aligns with a growth-focused strategy, but may lack the diversification benefits seen in more balanced portfolios. Compared to common benchmarks, this allocation is aggressive and could lead to higher volatility. Introducing other asset classes, such as bonds or real estate, could enhance diversification and provide stability during market fluctuations, without significantly compromising growth potential.

Sectors Info

  • Industrials
    17%
  • Consumer Staples
    15%
  • Consumer Discretionary
    14%
  • Technology
    11%
  • Health Care
    11%
  • Financials
    9%
  • Basic Materials
    6%
  • Real Estate
    4%
  • Telecommunications
    4%
  • Energy
    3%
  • Utilities
    2%

Sector allocation is diverse, with a notable concentration in Industrials (17%), Consumer Defensive (15%), and Consumer Cyclicals (14%). This balance mirrors common benchmarks but leans towards sectors that can be sensitive to economic cycles. Technology and Healthcare, each at 11%, offer growth potential but can also contribute to volatility. Consider monitoring sector trends, as shifts in economic conditions could impact performance. Adjusting sector weights could help manage risk and take advantage of emerging opportunities.

Regions Info

  • North America
    88%
  • Europe Developed
    8%

The portfolio's geographic exposure is heavily tilted towards North America, comprising 88% of assets, with limited exposure to Europe Developed at 8%. This concentration might limit diversification benefits, especially if the US market underperforms. Compared to global benchmarks, this allocation is less diverse. Expanding exposure to other regions, such as Asia or emerging markets, could enhance diversification and potentially capture growth in different economic environments, reducing reliance on North American markets.

Market capitalization Info

  • Large-cap
    60%
  • Mega-cap
    32%
  • Mid-cap
    3%
  • No data
    2%
  • Micro-cap
    1%

The portfolio is predominantly composed of large-cap stocks, with 60% in big caps and 32% in mega caps. This focus on larger companies generally offers stability and liquidity, aligning with a growth strategy. However, the minimal allocation to small and micro caps could limit exposure to high-growth opportunities. Consider diversifying market capitalization to include more small and medium-sized companies, which may provide higher growth potential and enhance overall portfolio performance.

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's current allocation could be optimized using the Efficient Frontier, which identifies the best possible risk-return ratio based on existing assets. This approach seeks to maximize returns for a given level of risk. While the portfolio is already well-diversified, minor adjustments in asset weights could enhance efficiency. It's important to note that optimization focuses on risk-return balance, not necessarily diversification or other goals. Regular reviews and adjustments based on changing market conditions could maintain optimal performance.

Dividends Info

  • Apple Inc 0.40%
  • AbbVie Inc 3.10%
  • Archer-Daniels-Midland Company 4.20%
  • Automatic Data Processing Inc 1.40%
  • Aflac Incorporated 1.90%
  • Arthur J Gallagher & Co 0.70%
  • Brown & Brown Inc 0.50%
  • Cardinal Health Inc 1.50%
  • Caterpillar Inc 1.60%
  • Chubb Ltd 0.90%
  • Coca-Cola Consolidated Inc. 0.50%
  • Costco Wholesale Corp 0.50%
  • Cintas Corporation 0.70%
  • Deere & Company 1.00%
  • Dover Corporation 1.20%
  • Consolidated Edison Inc 3.10%
  • Emerson Electric Company 1.40%
  • Ford Motor Company 7.60%
  • Fastenal Company 2.10%
  • Federal Realty Investment Trust 3.40%
  • Alphabet Inc Class C 0.50%
  • Genuine Parts Co 2.50%
  • WW Grainger Inc 0.80%
  • International Business Machines 2.70%
  • Johnson & Johnson 3.00%
  • Kimberly-Clark Corporation 2.60%
  • The Coca-Cola Company 2.10%
  • Linde plc Ordinary Shares 1.20%
  • Eli Lilly and Company 0.70%
  • Lowe's Companies Inc 2.00%
  • McDonald’s Corporation 2.20%
  • McKesson Corporation 0.30%
  • Medtronic PLC 2.40%
  • Meta Platforms Inc. 0.30%
  • Microsoft Corporation 0.80%
  • SPDR S&P® North American Natural Resources ETF 0.90%
  • Nucor Corp 1.30%
  • Realty Income Corp 5.60%
  • Old Dominion Freight Line Inc 0.60%
  • PepsiCo Inc 2.70%
  • Pentair PLC 1.10%
  • Sherwin-Williams Co 0.80%
  • Sysco Corporation 2.70%
  • Texas Pacific Land Trust 1.20%
  • Walmart Inc 0.70%
  • Weighted yield (per year) 1.47%

The portfolio's total dividend yield is 1.47%, with individual yields ranging from 0.30% to 7.60%. Dividends contribute to total returns and can provide a steady income stream, particularly in volatile markets. While the yield is modest, it aligns with a growth-focused strategy. Consider evaluating the sustainability of these dividends and the potential for reinvestment to enhance compounding effects. Balancing growth with higher-yielding assets could improve income generation without sacrificing growth potential.

Ongoing product costs Info

  • Grayscale Bitcoin Trust (BTC) 1.50%
  • SPDR® Gold Shares 0.40%
  • SPDR S&P® North American Natural Resources ETF 0.35%
  • AdvisorShares Vice ETF 0.99%
  • Weighted costs total (per year) 0.06%

Portfolio costs are relatively low, with a Total Expense Ratio (TER) of 0.06%. This cost efficiency supports better long-term performance, as high fees can erode returns over time. The ETFs in the portfolio have varying expense ratios, with the Grayscale Bitcoin Trust at 1.50% being the highest. Consider reviewing these costs regularly to ensure they align with the portfolio's objectives. Reducing high-cost investments or reallocating to more cost-effective options could further enhance net returns.

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