A broadly diversified stock heavy portfolio with strong growth focus and modest dividend support

Report created on Nov 19, 2024

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 built almost entirely from low cost index style ETFs, with a heavy tilt toward a broad US index, plus a global ex US fund, a total US market fund, and a focused US dividend fund. Compared to many “balanced” benchmarks that mix stocks and bonds, this setup is much more equity heavy and therefore more volatile. That equity focus matters because it drives both long term growth potential and the size of short term swings. One useful tweak could be simplifying the overlapping US holdings, so that each ETF plays a clearly distinct role while keeping the overall risk score in the current moderate to moderately high range.

Growth Info

Historically, this mix has delivered a strong compound annual growth rate (CAGR) of about 14%, meaning a hypothetical $10,000 could have grown to roughly $37,000 over ten years if that return repeated each year. CAGR is just an average “speed,” not the actual bumpy ride. The max drawdown around -34% shows how far the portfolio fell from a prior peak, which is a real world stress test of emotional tolerance. This profile is actually quite aligned with growth oriented benchmarks. Maintaining this structure is reasonable if such large but temporary declines feel acceptable and do not trigger panic selling during tough markets.

Projection Info

The Monte Carlo analysis, which runs 1,000 randomized simulations based on historical patterns, suggests a wide range of future outcomes. Monte Carlo basically shuffles past returns to create many possible futures rather than assuming a straight line. The median result near 450% growth and the 5th percentile near 88% highlight that results could be excellent, but also just break even after inflation in a weak scenario. These projections are helpful for planning but not promises, since markets rarely repeat history exactly. It could be useful to treat the low end of the range as a “stress plan” and check whether savings rates or timelines need adjusting.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The allocation is about 99% stocks and 1% cash, which is far more aggressive than a typical “balanced” mix that might hold substantial bonds. Stocks historically offer higher long term returns but come with larger and more frequent drawdowns. This equity dominance is a big reason the diversification score is high within stocks yet overall risk remains above average. The current setup is well aligned with growth focused strategies, but those who value smoother rides sometimes include more defensive assets. A future step could be slowly introducing a small allocation to more stable holdings if, over time, large equity swings start to feel uncomfortable.

Sectors Info

  • Technology
    30%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Industrials
    9%
  • Telecommunications
    9%
  • Consumer Staples
    6%
  • Energy
    5%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector exposure is nicely spread across all major areas, with technology leading at around 30%, followed by financials, consumer, healthcare, and others. This pattern looks very similar to broad market benchmarks, meaning the portfolio is not making big sector bets beyond what the market itself does. That alignment is a strong sign of healthy diversification because no single economic theme dominates the outcome. The tech tilt does mean sensitivity to rate moves and innovation cycles, but that’s typical in modern broad indexes. Ongoing check-ins can focus on whether the dividend ETF is unintentionally pushing weights too far toward slower growth areas relative to the rest.

Regions Info

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

Geographically, about 81% sits in North America with the rest spread across developed Europe and Asia plus small allocations to emerging regions. That US heavy stance closely matches many global benchmarks and has been rewarded in recent years as US markets outperformed many others. Still, it leaves results quite tied to the US economic and policy cycle. The international sleeve at roughly 20% brings useful diversification because foreign markets often behave differently over time. Keeping at least this level of global exposure looks sensible, and periodic reviews might ask whether nudging the non US share slightly up or down fits evolving comfort with overseas risks.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    35%
  • Mid-cap
    19%
  • Small-cap
    3%
  • Micro-cap
    1%

Market capitalization exposure is dominated by mega and large companies, with meaningful but smaller slices in mid, small, and micro caps. This shape closely resembles broad market indexes and helps keep risk moderate relative to a purely small cap tilt. Larger companies tend to be more stable and widely researched, while smaller firms can be more volatile but sometimes offer higher growth bursts. This blend is well balanced and aligns closely with global standards. One area to watch is overlap between the S&P 500 and total market ETFs, since both are heavy in large caps; trimming redundancy could keep the same size profile with fewer moving parts.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The correlation analysis shows that the S&P 500 ETF and the total US market ETF move very similarly. Correlation measures how often assets move in the same direction; when it’s high, holding both doesn’t add much diversification, especially in downturns when everything drops together. That overlap is common, not harmful by itself, but it does create complexity without big benefits. Simplifying by favoring one broad US core ETF could make the portfolio easier to manage and understand while barely changing risk. The remaining funds already provide domestic, international, and dividend tilts, which keeps diversification strong even after reducing those redundant pairs.

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.

From a risk versus return angle, this mix likely sits near the efficient frontier for an all equity portfolio. The efficient frontier is the set of allocations that give the best possible return for a given level of volatility using only the existing ingredients. However, the overlapping US funds mean the current point could be slightly refined by concentrating into fewer broad vehicles while keeping overall exposure similar. That kind of tweak doesn’t chase higher returns, it just aims for a cleaner risk return ratio. Remember that “efficient” here only refers to volatility versus return, not other goals like income stability or tax preferences.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.80%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.69%

The overall dividend yield around 1.7% is modest, reflecting a growth oriented stock mix cushioned by the higher yielding dividend ETF. Dividends are the cash payments companies make to shareholders and can feel like a “paycheck” from investments, especially useful for those who value some income without sacrificing growth. This income level is consistent with a strategy that leans more toward appreciation than cash flow. The dedicated dividend fund boosts yield without dramatically changing the broad market character. Over time, revisiting how important cash income is versus pure growth can guide whether to increase, hold, or reduce the dividend focused slice.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • 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) 0.04%

The total expense ratio around 0.04% is impressively low and a real strength. TER (total expense ratio) is the annual fee paid to managers, and even small differences compound a lot over decades. For example, paying 0.7% instead of 0.04% each year could quietly shave thousands off long term outcomes. Being this close to the rock bottom of the cost spectrum aligns with best practices and supports better long term performance. There’s no urgent need to change anything here; the main focus can stay on allocation choices rather than fee hunting. Just keeping funds low cost and broadly diversified maintains this advantage going forward.

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