Balanced and broadly diversified portfolio with a focus on global equities and dividend yield

Report created on Jul 20, 2025

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

Positions

Your portfolio exhibits a strong foundation in equities, with a 99% allocation towards stocks and a minimal cash position. This composition underscores a growth-oriented strategy, leveraging both domestic and international equity ETFs. The blend of large-cap indices, such as the SPDR® Portfolio S&P 500 ETF and Fidelity 500 Index Fund, with niche strategies like the Avantis® U.S. Small Cap Value ETF and sector-specific momentum plays, indicates a nuanced approach to capturing broad market exposure while seeking additional alpha through factor and momentum investing. This diversified equity base is supported by a well-considered geographic spread and a spectrum of market capitalizations.

Growth Info

Over the review period, the portfolio achieved a Compound Annual Growth Rate (CAGR) of 13.97%, with a maximum drawdown of -21.62%. This performance metric reveals the portfolio's ability to generate robust returns while navigating market volatility. The days contributing to 90% of returns highlight the impact of significant market movements on overall performance. When compared to a benchmark, these figures can provide insight into the portfolio's risk-adjusted return efficiency. This historical performance, while indicative of past success, should be contextualized with the understanding that past returns are not predictive of future outcomes.

Projection Info

Monte Carlo simulations, utilizing historical data to forecast future portfolio performance, suggest a wide range of outcomes. With a median projected growth of 499.8% and a 67th percentile at 681.2%, the simulations underscore the potential for substantial long-term gains. However, the inherent uncertainty in these projections, demonstrated by the variance between the 5th and 67th percentiles, emphasizes the importance of risk management in expectations for future growth. This method, while informative, relies on historical patterns that may not repeat, especially in changing market conditions.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The nearly exclusive allocation to stocks within your portfolio aligns with a growth-focused investment strategy but introduces a higher level of market risk relative to portfolios with more diverse asset class allocations. While the 1% cash position may offer liquidity for rebalancing or opportunistic investments, the absence of fixed income or alternative investments limits the portfolio's ability to hedge against equity market downturns. Diversifying across different asset classes can provide a smoother return profile over time.

Sectors Info

  • Technology
    23%
  • Financials
    18%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Telecommunications
    8%
  • Health Care
    7%
  • Consumer Staples
    6%
  • Energy
    5%
  • Basic Materials
    4%
  • Utilities
    2%
  • Real Estate
    2%
  • Consumer Discretionary
    2%

Sector allocation shows a heavy emphasis on Technology and Financial Services, which are sectors known for their growth potential but also for their volatility. The presence of Industrials, Consumer Cyclicals, and Communication Services further diversifies the portfolio, though the concentration in high-growth sectors may increase sensitivity to market cycles. Balancing growth-oriented sectors with more defensive sectors like Healthcare and Consumer Defensive could provide a more resilient portfolio structure against market fluctuations.

Regions Info

  • North America
    74%
  • Europe Developed
    9%
  • Asia Emerging
    6%
  • Japan
    5%
  • Asia Developed
    3%
  • Africa/Middle East
    2%
  • Australasia
    1%
  • Latin America
    1%

The geographic distribution of your portfolio, with a significant 74% allocation to North America, underscores a home bias that is common among U.S.-based investors. While the 25% allocation to international markets, including both developed and emerging regions, enhances diversification and exposure to global growth opportunities, there may be room to increase international exposure. This could mitigate the risk of regional economic downturns and capitalize on growth in emerging markets.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    28%
  • Mid-cap
    18%
  • Small-cap
    9%
  • Micro-cap
    5%

Your portfolio's market capitalization spread, with a focus on Mega and Big cap stocks, aligns with the pursuit of stability and growth. These companies often offer more predictable returns and resilience during market downturns. However, the allocation to Medium, Small, and Micro caps, though smaller, is crucial for diversification and potential outperformance. Small and Micro cap investments can offer higher growth potential, albeit with increased volatility and risk.

Redundant positions Info

  • Avantis® International Small Cap Value ETF
    Vanguard FTSE Developed Markets Index Fund ETF Shares
    High correlation
  • SPDR® Portfolio S&P 500 ETF
    Fidelity 500 Index Fund
    Capital Group Dividend Value ETF
    High correlation

The identified highly correlated asset groups within your portfolio suggest an overlap in exposure that may not contribute to diversification benefits. Particularly, the correlation between large-cap S&P 500 ETFs and specific dividend-focused ETFs indicates redundancy. Reducing overlap by reallocating from highly correlated assets to those with lower correlations can enhance portfolio diversification, potentially reducing volatility without sacrificing expected returns.

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.

Optimizing for the Efficient Frontier suggests that your current portfolio could potentially achieve a higher expected return of 22.13% at a similar risk level. This optimization process, which highlights the importance of diversifying and balancing correlated assets, suggests there is room to improve the risk-return profile of your portfolio. It's crucial to consider that this theoretical optimization is based on historical data, which may not fully predict future performance dynamics. Adjusting the portfolio to reduce overlap and enhance diversification could move it closer to this optimal state.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.80%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Capital Group Dividend Value ETF 1.10%
  • Fidelity 500 Index Fund 0.90%
  • SPDR® Portfolio S&P 500 ETF 1.20%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.70%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.63%

Dividend yields across the portfolio contribute to its total return, with yields ranging significantly across different ETFs. The emphasis on dividend-generating assets can provide a steady income stream, which is beneficial in both bullish and bearish markets. However, the overall portfolio yield of 1.63% suggests a moderate income focus. Balancing higher-yielding assets with growth-oriented investments could optimize income generation without significantly compromising growth potential.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Capital Group Dividend Value ETF 0.33%
  • Fidelity 500 Index Fund 0.02%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.11%

The portfolio's total expense ratio (TER) of 0.11% is impressively low, particularly for a portfolio with such broad diversification. This efficient cost structure enhances net returns over time, as lower costs translate directly to higher investor returns. While the Avantis® ETFs carry slightly higher fees, their specialized strategies may justify the cost. Continuously monitoring and minimizing investment costs remains a key strategy for maximizing long-term portfolio growth.

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