Balanced portfolio with a strong focus on stocks and significant gold investment

Report created on Aug 18, 2025

Risk profile Info

4/7
Balanced
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Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is characterized by a heavy allocation towards equities, with 60% in a total stock market ETF and 20% in an international stock ETF, reflecting a broad exposure to global equities. The inclusion of 20% in a gold ETF is notable for its diversification benefits and potential as a hedge against inflation and market volatility. This blend of assets suggests a strategy aiming to balance growth through equities with the stability gold can offer, especially during times of economic uncertainty.

Growth Info

The portfolio has demonstrated a strong historical performance with a Compound Annual Growth Rate (CAGR) of 13.68%, despite experiencing a maximum drawdown of -28.14%. This indicates that while the portfolio has been able to generate impressive returns, it has also faced significant short-term losses. The days contributing to 90% of returns being concentrated in just 26.0 days highlights the impact of significant market movements on performance.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential portfolio values. With 989 out of 1,000 simulations showing positive returns and a median projected increase of 387.9%, the outlook seems optimistic. However, it's crucial to remember that these projections are not guarantees and are subject to the limitations of past data predicting future events.

Asset classes Info

  • Stocks
    79%
  • Other
    20%
  • Cash
    1%

The portfolio's asset allocation leans heavily towards stocks (79%) with a notable position in gold (20%), leaving a minimal cash reserve (1%). This allocation underscores a growth-oriented strategy while using gold as a counterbalance to stock market volatility. The presence of gold, not typically yielding high returns compared to stocks, suggests a defensive posture within an overall aggressive growth strategy.

Sectors Info

  • Technology
    22%
  • Financials
    13%
  • Industrials
    9%
  • Consumer Discretionary
    8%
  • Health Care
    7%
  • Telecommunications
    7%
  • Consumer Staples
    4%
  • Energy
    3%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Utilities
    2%

With sectors like Technology (22%) and Financial Services (13%) leading the portfolio's composition, there's a clear tilt towards industries that can offer high growth potential. However, this also introduces sector-specific risks, such as higher volatility in the tech sector. The diversified sector allocation across 11 sectors, though, helps mitigate some of this risk.

Regions Info

  • North America
    61%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

The geographic distribution is heavily weighted towards North America (61%), with modest allocations in developed Europe (8%) and emerging Asia (3%), among others. This concentration in developed markets, especially the U.S., aligns with the portfolio's growth orientation but may limit exposure to potentially higher growth in emerging markets.

Market capitalization Info

  • Mega-cap
    33%
  • Large-cap
    25%
  • Mid-cap
    15%
  • Small-cap
    5%
  • Micro-cap
    1%

The portfolio's emphasis on mega (33%) and big (25%) cap stocks indicates a preference for established, large companies likely to offer stable returns and lower volatility compared to smaller companies. However, this could also mean missing out on the higher growth potential of mid and small-cap stocks.

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 has shown strong performance, but analysis suggests that an optimized portfolio with the same risk level could potentially achieve a higher expected return of 14.79%. This implies that there may be opportunities to adjust the asset allocation to further enhance returns without increasing the portfolio's overall risk profile.

Dividends Info

  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.26%

The portfolio yields an overall dividend of 1.26%, with the international stock ETF offering a higher yield (2.70%) compared to the total stock market ETF (1.20%). This dividend income can provide a steady stream of cash flow, contributing to the portfolio's total return and offering some cushion during market dips.

Ongoing product costs Info

  • SPDR Gold Mini Shares 0.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.05%

The portfolio benefits from low overall costs (Total TER of 0.05%), which is crucial for enhancing long-term returns. Keeping expenses low is a fundamental principle of investing success, as high fees can significantly erode investment gains over time.

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