Balanced and highly diversified portfolio with a focus on technology and global equities

Report created on Jul 6, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is structured around a core of large-cap U.S. equities and technology, complemented by international exposure and small-cap value stocks. With 60% in top U.S. ETFs, 25% in global stocks, and a small but significant allocation to small-cap value and cash equivalents, it's tailored for balanced growth. The inclusion of a money market fund adds liquidity and reduces overall volatility, aligning well with a balanced risk profile.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 14.26%, with a maximum drawdown of -25.81%. These figures suggest robust growth potential tempered by moderate downturns. The performance is particularly notable considering the days contributing most to returns, indicating resilience in diverse market conditions. This historical performance, while indicative of past success, should be viewed as part of a broader assessment of future potential.

Projection Info

Monte Carlo simulations, which project future outcomes based on historical data, show a wide range of potential returns, with a median increase of 383.3%. While this method provides a broad view of possible future states, it's important to remember that it relies on past trends, which may not predict future movements accurately. Nonetheless, the positive returns in 988 out of 1,000 simulations indicate a strong likelihood of future growth.

Asset classes Info

  • Stocks
    94%
  • No data
    5%
  • Cash
    1%

The portfolio's 94% allocation to stocks underscores a growth-oriented strategy, balanced by a 5% position in cash equivalents for liquidity and safety. This mix supports a balanced risk-return profile, suitable for investors comfortable with moderate market fluctuations. Diversifying across asset classes could further enhance the portfolio's resilience against market volatility.

Sectors Info

  • Technology
    30%
  • Financials
    13%
  • Consumer Discretionary
    11%
  • Telecommunications
    9%
  • Industrials
    9%
  • Health Care
    7%
  • Consumer Staples
    5%
  • No data
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    1%

With a significant tilt towards technology and financial services, the portfolio is poised to capitalize on growth in these sectors. However, this concentration also introduces sector-specific risks, which could be mitigated by increasing exposure to underrepresented sectors. Balancing sector exposure can help smooth returns over time, especially during sector-specific downturns.

Regions Info

  • North America
    71%
  • Europe Developed
    10%
  • No data
    5%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation, with a strong bias towards North America and developed Europe, provides stability and exposure to mature markets. However, the limited exposure to emerging markets and Asia might restrict potential growth opportunities. Diversifying geographically can reduce risk and tap into growth in diverse economies.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    28%
  • Mid-cap
    13%
  • Small-cap
    6%
  • Micro-cap
    5%
  • No data
    5%

A focus on mega and big-cap stocks offers stability and reduces volatility, which is consistent with the portfolio's balanced profile. Incorporating a broader range of market capitalizations, especially more small and micro-cap stocks, could offer higher growth potential, 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.

The Efficient Frontier analysis suggests that an optimized portfolio could achieve a higher expected return of 3.62% at the same risk level. This indicates room for improvement in the current allocation, potentially by adjusting asset weights or diversifying further. Pursuing efficiency in risk-return trade-off is crucial for enhancing portfolio performance.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Invesco NASDAQ 100 ETF 0.50%
  • Fidelity® Government Money Market Fund 4.00%
  • SPDR® Portfolio S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.58%

The portfolio's average dividend yield of 1.58% contributes to its total return, offering a steady income stream in addition to potential capital gains. This yield, while modest, complements the growth focus of the portfolio. Investors might consider rebalancing towards higher-yielding assets if income becomes a more significant objective.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco NASDAQ 100 ETF 0.15%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.09%

With an overall expense ratio of 0.09%, the portfolio is efficiently managed, minimizing costs to maximize net returns. This low-cost approach enhances long-term growth potential by reducing the drag on performance. Continuing to prioritize cost-effective investments will support the portfolio's health and returns.

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