A balanced and broadly diversified portfolio with a strong tilt towards technology

Report created on Aug 3, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio showcases a balanced approach with a significant emphasis on equities, particularly within the technology sector, which comprises 45% of the allocation. The inclusion of broad market ETFs, such as the Vanguard S&P 500 ETF, alongside specific sector ETFs like the Vanguard Information Technology Index Fund, indicates a strategy that leans towards growth while maintaining a foundation in the overall market. The presence of bonds and international stocks adds a layer of diversification, although the heavy weighting in technology suggests a higher risk tolerance and growth orientation.

Growth Info

The historical performance of this portfolio, with a Compound Annual Growth Rate (CAGR) of 20.29%, is impressive. The Max Drawdown of -19.32% indicates resilience during market downturns, although it's important to remember that past performance is not indicative of future results. The portfolio's ability to recover from losses and capitalize on market upswings is notable, but investors should be prepared for similar volatility moving forward.

Projection Info

Monte Carlo simulations suggest a wide range of potential outcomes for this portfolio, with a median projected increase of 1,494.3%. While this tool offers a statistical analysis based on historical data, it's crucial to understand its limitations. These projections do not guarantee future performance and should be used as one of many tools in evaluating investment strategies.

Asset classes Info

  • Stocks
    84%
  • Bonds
    15%
  • Cash
    1%

Allocating 84% to stocks and 15% to bonds with a minimal cash position indicates a growth-oriented strategy with moderate risk. This asset class distribution is suitable for investors looking for higher returns over the long term, albeit with increased volatility. The bond allocation provides a cushion against stock market fluctuations, which is a prudent strategy for balanced portfolios.

Sectors Info

  • Technology
    45%
  • Telecommunications
    10%
  • Financials
    8%
  • Consumer Discretionary
    5%
  • Industrials
    5%
  • Health Care
    4%
  • Consumer Staples
    3%
  • Energy
    2%
  • Basic Materials
    2%
  • Utilities
    1%
  • Real Estate
    1%

The sectoral allocation reveals a strong preference for technology, followed by communication services and financial services. This concentration in technology may lead to higher volatility, especially during market corrections or shifts in investor sentiment towards the tech sector. Diversifying across more sectors could mitigate some of this risk.

Regions Info

  • North America
    68%
  • Europe Developed
    7%
  • Asia Emerging
    4%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

With 68% of assets in North America and modest allocations to other regions, the portfolio has a significant home-country bias. Expanding more into international markets, especially emerging markets, could offer additional growth opportunities and further diversification benefits.

Market capitalization Info

  • Mega-cap
    36%
  • Large-cap
    25%
  • Mid-cap
    13%
  • Small-cap
    6%
  • Micro-cap
    4%

The market capitalization breakdown shows a focus on mega and large-cap stocks, which tend to be more stable and less volatile than smaller companies. However, incorporating a greater mix of medium, small, and micro-cap stocks could enhance returns over time, albeit with increased risk.

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.

Considering the Efficient Frontier, there may be opportunities to optimize the risk-return profile by adjusting the asset allocation. While the current setup is growth-oriented, ensuring the best possible risk-return ratio might involve rebalancing towards underrepresented sectors or asset classes, or reducing the heavy tech concentration.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.50%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • SPDR® S&P Telecom ETF 0.70%
  • Weighted yield (per year) 1.49%

The overall dividend yield of 1.49% contributes to the portfolio's total return, providing a steady income stream in addition to potential capital gains. While the focus appears to be on growth rather than income, maintaining a balance between high-yield and growth investments could offer a more comprehensive return profile.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Tidal Trust II 0.75%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • SPDR® S&P Telecom ETF 0.35%
  • Weighted costs total (per year) 0.15%

With a Total Expense Ratio (TER) of 0.15%, the portfolio is efficiently managed cost-wise. Lower costs directly translate to higher net returns over time, making this an attractive feature. Continuously monitoring and minimizing investment costs remains a key strategy for enhancing long-term portfolio performance.

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