A balanced portfolio focusing on S&P 500 equities and gold for risk mitigation

Report created on Oct 12, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio prominently features two main investments: 75% in the Vanguard S&P 500 ETF, which tracks the performance of the S&P 500 Index, and 25% in the iShares® Gold Trust Micro, aimed at tracking the gold market. Such a composition suggests a strategy leaning heavily towards equities with a significant hedge in gold. While the equity portion provides exposure to the largest U.S. companies across various sectors, the gold investment serves as a counterbalance, potentially offering protection against inflation and market volatility.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 14.72%, with a maximum drawdown of -20.84%. These figures indicate a strong performance, particularly given the relative simplicity of the portfolio's composition. The days contributing to 90% of returns being limited to 23 suggests that the portfolio's performance has been influenced significantly by a few exceptionally good trading days. This highlights the impact of market timing and the importance of staying invested during volatile periods.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential future outcomes, suggest a wide range of possible performances for this portfolio. With 1,000 simulations, the median projected increase is 784.9%, while the 5th and 67th percentiles show potential outcomes of 260.2% and 1,069.2%, respectively. This points to a generally positive outlook, though the wide range underscores the inherent uncertainties in market movements.

Asset classes Info

  • Stocks
    75%

The portfolio's asset allocation is heavily skewed towards stocks, with a 75% allocation, while the remaining 25% is invested in gold. This single-asset class focus on equities, complemented by a significant position in a commodity ETF, indicates a strategy that balances growth potential with a measure of inflation protection and diversification. However, the absence of other asset classes such as bonds or real estate might limit the portfolio's ability to hedge against stock market downturns more effectively.

Sectors Info

  • Technology
    27%
  • Financials
    10%
  • Consumer Discretionary
    8%
  • Telecommunications
    7%
  • Health Care
    7%
  • Industrials
    6%
  • Consumer Staples
    4%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    1%
  • Basic Materials
    1%

The sectoral allocation within the Vanguard S&P 500 ETF mirrors the broader market, with technology, financial services, and consumer cyclicals leading. This sector distribution is reflective of the current composition of the S&P 500, which is heavily weighted towards technology. While this can offer significant growth potential, it also exposes the portfolio to sector-specific risks, such as regulatory changes or market sentiment shifts.

Regions Info

  • North America
    75%

With 75% of the portfolio invested in North American equities, primarily U.S. stocks, there's a clear geographic concentration risk. While the U.S. market is one of the most robust and diversified globally, this heavy allocation might limit exposure to potential growth in other regions, particularly in emerging markets or developed markets outside North America.

Market capitalization Info

  • Mega-cap
    35%
  • Large-cap
    25%
  • Mid-cap
    13%
  • Small-cap
    1%

The market capitalization breakdown shows a preference for mega and big-cap stocks, which comprise 60% of the portfolio. This allocation is consistent with the S&P 500's composition, favoring stability and lower volatility associated with larger companies. However, the limited exposure to medium and small-cap stocks could mean missing out on the higher growth potential these segments may offer.

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's expected return is slightly below the optimal level identified through portfolio optimization techniques. By adjusting the asset allocation without increasing the risk level, it's possible to achieve an expected return of 18.26%. This suggests that while the portfolio is performing well, there might be an opportunity to fine-tune the allocation for even better risk-adjusted returns.

Dividends Info

  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 0.82%

The dividend yield from the Vanguard S&P 500 ETF contributes to the portfolio's total yield of 0.82%. While not the primary focus of this investment strategy, these dividends offer a passive income stream and can be reinvested to compound growth. The relatively modest yield reflects the growth-oriented nature of the portfolio, where capital appreciation is the primary goal.

Ongoing product costs Info

  • iShares® Gold Trust Micro 0.09%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.04%

The portfolio's total expense ratio (TER) of 0.04% is impressively low, maximizing the potential for net returns. Keeping costs low is crucial for long-term investment success, as even small differences in fees can significantly impact compounded returns over time. This portfolio benefits from the efficiency and affordability of its chosen ETFs.

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