A moderately diversified balanced portfolio with a focus on North American equities and limited bond exposure

Report created on Dec 18, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards equities, with 70% in iShares Core Equity and 20% in Vanguard S&P 500 ETFs. A small allocation of 5% each is in iShares Gold Bullion and BMO Global Strategic Bond ETFs. The dominance of equity ETFs suggests a focus on growth, while the inclusion of gold and bonds adds a modest level of stability. The balance between growth and stability aligns with a balanced risk profile. Diversifying further could enhance resilience against market fluctuations.

Growth Info

Historically, the portfolio has demonstrated strong performance with a compound annual growth rate (CAGR) of 14.03%. However, it also experienced a maximum drawdown of -26.89%, indicating significant volatility during downturns. Understanding past performance helps set realistic expectations for future returns and risk. While historical data provides insights, it doesn't guarantee future results. Investors should consider both the potential for high returns and the risk of substantial losses when evaluating this portfolio.

Projection Info

The Monte Carlo simulation, using 1,000 simulations, projects a wide range of potential outcomes. The median (50th percentile) projection is a return of 369.54%, with a positive return in 997 out of 1,000 simulations. Monte Carlo simulations use historical data to model potential future performance, but they can't predict market changes or guarantee specific outcomes. These projections suggest a high probability of positive returns, but investors should remain cautious of possible market downturns.

Asset classes Info

  • US Equity
    53%
  • Stocks
    18%
  • Bonds
    4%
  • Cash
    2%

The portfolio's asset allocation primarily consists of US equity (52.65%) and general equity (17.62%), with minimal exposure to bonds (3.86%) and cash (1.53%). This allocation emphasizes growth over income or capital preservation. While equities offer potential for higher returns, they also come with increased volatility. A more balanced allocation, including more bonds or alternative assets, could lower risk and enhance stability. Adjusting the allocation based on individual risk tolerance and goals is advisable.

Sectors Info

  • Technology
    21%
  • Financials
    17%
  • Telecommunications
    10%
  • Industrials
    10%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Energy
    6%
  • Consumer Staples
    5%
  • Basic Materials
    4%
  • Real Estate
    3%
  • Utilities
    3%

The portfolio is spread across various sectors, with significant allocations in technology (21.01%), financial services (16.85%), and communication services (10.27%). This sectoral distribution suggests a focus on growth-oriented industries. However, the concentration in specific sectors could increase vulnerability to sector-specific risks. Diversifying across additional sectors can mitigate these risks and provide more balanced exposure. Investors should consider their views on these sectors' future prospects when making allocation decisions.

Regions Info

  • North America
    76%
  • Europe Developed
    10%
  • Japan
    4%
  • Asia Emerging
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

The portfolio is heavily concentrated in North America, with 75.60% of assets allocated there. This geographic focus can be beneficial if North American markets perform well, but it also exposes the portfolio to regional risks. Diversifying geographically by increasing exposure to other regions, such as Europe or Asia, could enhance resilience against local economic downturns. A more globally diversified portfolio could provide better risk-adjusted returns over the long term.

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 could potentially be optimized using the Efficient Frontier, which aims to achieve the best possible risk-return ratio. This involves adjusting the allocation among current assets to maximize returns for a given level of risk or minimize risk for a given return target. Optimization doesn't necessarily mean adding new assets but reallocating existing ones to enhance efficiency. Investors should consider their risk tolerance and goals when deciding on adjustments.

Dividends Info

  • Vanguard S&P 500 Index ETF 0.70%
  • iShares Core Equity Portfolio 1.50%
  • BMO Global Strategic Bond ETF 3.30%
  • Weighted yield (per year) 1.36%

The portfolio offers a modest total dividend yield of 1.36%, with contributions from the Vanguard S&P 500 ETF (0.7%), iShares Core Equity Portfolio (1.5%), and BMO Global Strategic Bond ETF (3.3%). Dividends provide a steady income stream, which can be particularly valuable during periods of market volatility. While the yield is not high, it adds a layer of return that can complement capital gains. Investors seeking higher income might explore additional dividend-focused investments.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey