A balanced and highly diversified portfolio with a strong emphasis on North American and technology equities

Report created on Aug 4, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is structured around a core of North American and technology-focused ETFs, making up 55% of the total investment, complemented by significant allocations to developed and emerging markets outside North America. The heavy weighting towards ETFs suggests a preference for diversified, index-tracking investments, reducing stock-specific risk while providing exposure to a broad range of sectors and geographies. The mix of US, Canadian, and international equities offers a balanced approach, mitigating the risks associated with over-concentration in any single market.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 12.86% and a maximum drawdown of -22.79%, the portfolio has demonstrated resilience and growth potential. The days contributing to 90% of returns highlight the impact of significant market movements on performance. This historical performance, while impressive, should be contextualized within market conditions during the period analyzed. It's crucial to remember that past performance is not indicative of future results, but this trend does suggest a well-constructed approach to achieving growth within a balanced risk framework.

Projection Info

Monte Carlo simulations, utilizing historical data to project future outcomes through 1,000 scenarios, indicate a wide range of potential portfolio values. With 989 out of 1,000 simulations yielding positive returns and a median projected increase of 333.2%, these forecasts suggest a strong likelihood of future growth. However, the inherent uncertainty in these projections underscores the importance of maintaining a diversified portfolio to manage risk effectively.

Asset classes Info

  • US Equity
    49%
  • Stocks
    20%
  • Cash
    1%

The portfolio's asset class distribution, with a dominant focus on US equities (49%) followed by a broad equity category (20%), underscores its growth-oriented strategy. The minor allocations to cash and other assets indicate a minimal defensive posture, consistent with a balanced risk profile. This asset class mix supports the portfolio's objectives of capital appreciation while providing some level of income through dividends, particularly from the equity components.

Sectors Info

  • Technology
    30%
  • Financials
    16%
  • Consumer Discretionary
    10%
  • Industrials
    10%
  • Telecommunications
    9%
  • Health Care
    6%
  • Consumer Staples
    5%
  • Basic Materials
    5%
  • Energy
    5%
  • Utilities
    2%
  • Real Estate
    2%

The sectoral allocation reveals a significant emphasis on technology (30%), financial services (16%), and consumer cyclicals (10%), sectors known for their growth potential but also for their volatility. This concentration aligns with the portfolio's growth objectives but warrants monitoring given the cyclical nature of these industries. Diversification across ten sectors mitigates some risk, but the heavy tech weighting introduces sector-specific exposure that should be balanced against overall risk tolerance.

Regions Info

  • North America
    69%
  • Europe Developed
    12%
  • Asia Emerging
    6%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic diversification is a strength of this portfolio, with 69% allocated to North America and the remainder spread across developed and emerging markets. This global exposure enhances growth potential by tapping into different economic cycles and market dynamics. However, the significant North American focus may expose the portfolio to regional economic risks, suggesting the potential benefit of increasing allocations to underrepresented areas for more balanced global exposure.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    32%
  • Mid-cap
    16%
  • Small-cap
    3%

The market capitalization breakdown, with a bias towards mega (48%) and big (32%) cap stocks, suggests a preference for established, large-scale companies known for their stability and potential for steady growth. This composition aligns with the portfolio's balanced risk profile, as these companies typically exhibit less volatility than their smaller counterparts. However, the relatively small allocation to small and micro-cap stocks may limit exposure to high-growth opportunities in these segments.

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 current portfolio demonstrates a strong alignment with the principles of risk-return optimization, as suggested by its historical performance and Monte Carlo projections. While the heavy allocation to technology and North American equities has served well in the past, ongoing evaluation and potential rebalancing towards underrepresented sectors and geographies could further optimize the risk-return profile. Employing the Efficient Frontier concept could identify opportunities to achieve the highest possible returns for a given level of risk, ensuring the portfolio remains well-positioned for future growth.

Dividends Info

  • Invesco NASDAQ 100 Index ETF CAD Units 0.30%
  • Vanguard FTSE Canada All Cap 1.90%
  • Vanguard FTSE Emerging Markets 2.10%
  • Vanguard FTSE Developed All Cap ex North Amer Idx ETF 1.20%
  • Vanguard US Total Market 0.70%
  • Weighted yield (per year) 1.04%

The portfolio's average dividend yield of 1.04% reflects a balanced approach to income and growth. While not the primary focus, dividends contribute to the portfolio's total return and provide a modest income stream. Given the growth orientation, the relatively low yield is understandable, but investors seeking higher income might consider reallocating towards assets with higher dividend yields or employing a dividend growth strategy.

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