A balanced and moderately diversified portfolio with a strong tilt towards technology and dividends

Report created on Aug 3, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is structured around a balanced mix of equity and bond ETFs, with a significant emphasis on technology and dividend-paying assets. The allocation spans across various sectors and geographies, though with a heavy concentration in North American markets and the technology sector. The blend of growth-oriented ETFs like the ARK Innovation ETF and Vanguard Information Technology Index Fund ETF Shares with income-focused options such as the Schwab U.S. Dividend Equity ETF and Invesco S&P 500® High Dividend Low Volatility ETF creates a diversified approach to capturing market growth while seeking to provide steady income.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 12.54%, with a maximum drawdown of -18.40%. These figures suggest a resilient performance across various market conditions, with the ability to recover from downturns reasonably well. The days contributing to 90% of returns highlight the impact of significant market movements on portfolio performance, underlining the importance of staying invested through market cycles for optimal growth.

Projection Info

Monte Carlo simulations, which use historical data to project potential future outcomes, indicate a wide range of possible performances for this portfolio. With a median projection of 323.8% growth, and 951 out of 1,000 simulations showing positive returns, the forward-looking analysis suggests a strong probability of future gains. However, it's crucial to remember that these projections are not guarantees but rather hypothetical scenarios based on past trends.

Asset classes Info

  • Stocks
    88%
  • Bonds
    10%
  • No data
    2%

The portfolio's asset allocation leans heavily towards stocks (88%), with a smaller portion in bonds (10%). This allocation supports a growth-oriented strategy while the bond holdings offer a cushion against market volatility. The minimal allocation to non-classified and cash assets indicates a fully invested stance, aiming to maximize market exposure and potential returns.

Sectors Info

  • Technology
    30%
  • Financials
    10%
  • Health Care
    9%
  • Consumer Discretionary
    8%
  • Telecommunications
    7%
  • Consumer Staples
    7%
  • Industrials
    6%
  • Energy
    4%
  • Real Estate
    3%
  • Utilities
    3%
  • Basic Materials
    2%

With technology constituting 30% of the portfolio, followed by financial services and healthcare, the sectoral allocation underscores a focus on industries with high growth potential. However, this concentration also introduces sector-specific risks, particularly in technology, which can be more volatile than other sectors. Diversifying across more sectors could help mitigate these risks.

Regions Info

  • North America
    80%
  • Europe Developed
    6%
  • Japan
    2%
  • Asia Developed
    1%
  • Australasia
    1%

The geographic allocation is heavily skewed towards North America (80%), with modest exposure to developed markets in Europe and Asia. This concentration benefits from the robust performance of the U.S. market but limits exposure to potential growth in emerging markets and other developed regions. Broadening geographic diversification could enhance the portfolio's growth potential and resilience.

Market capitalization Info

  • Mega-cap
    32%
  • Large-cap
    30%
  • Mid-cap
    20%
  • Small-cap
    5%
  • Micro-cap
    2%

The portfolio's market capitalization exposure is well-distributed among mega (32%), big (30%), and medium (20%) cap stocks, with smaller allocations to small and micro caps. This distribution suggests a balanced approach, favoring the stability of larger companies while still capturing the growth potential of smaller firms.

Redundant positions Info

  • Vanguard S&P 500 ETF
    JPMorgan Nasdaq Equity Premium Income ETF
    Vanguard Information Technology Index Fund ETF Shares
    Vanguard Growth Index Fund ETF Shares
    High correlation

The high correlation among certain ETFs, especially within the technology sector and S&P 500-based funds, indicates overlapping holdings that may not contribute to diversification. Reducing exposure to highly correlated assets can enhance the portfolio's ability to withstand market volatility by spreading risk more effectively across uncorrelated investments.

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.

To optimize the portfolio for a better risk-return balance, consider reducing overlap among highly correlated assets. This step can enhance diversification benefits and potentially improve the portfolio's resilience against market downturns. Utilizing the Efficient Frontier concept could help in identifying the optimal mix of assets for achieving the highest possible returns for a given level of risk.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.50%
  • JPMorgan Nasdaq Equity Premium Income ETF 10.40%
  • Schwab U.S. Dividend Equity ETF 3.90%
  • Invesco S&P 500® High Dividend Low Volatility ETF 3.50%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.70%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 1.70%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Weighted yield (per year) 2.78%

The portfolio's dividend yield stands at 2.78%, contributed by both equity and bond ETFs. This yield, combined with the growth potential of the equity holdings, offers a balanced approach to income generation and capital appreciation. Regularly reviewing dividend-yielding assets can ensure they continue to meet income and growth objectives.

Ongoing product costs Info

  • ARK Innovation ETF 0.75%
  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • JPMorgan Nasdaq Equity Premium Income ETF 0.35%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Invesco S&P 500® High Dividend Low Volatility ETF 0.30%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.18%

With a Total Expense Ratio (TER) averaging 0.18%, the portfolio is cost-efficient, minimizing the drag on returns caused by fees. Lower costs are crucial for long-term investment success, as they compound over time, potentially saving investors a significant amount of money.

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