A balanced and broadly diversified portfolio with a strong focus on growth

Report created on Aug 29, 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 stands out for its balanced allocation across three major ETFs, focusing heavily on the NASDAQ 100, the US total stock market, and international stocks. This structure provides a broad diversification across sectors and geographies, with a significant emphasis on technology. The choice of ETFs suggests a preference for exposure to large-cap companies, which is consistent with the portfolio's balanced risk profile. The overall diversification score and risk classification align well, indicating a thoughtful approach to risk management within the context of seeking growth.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 14.29%, with a maximum drawdown of -29.36%. These figures suggest a strong performance relative to the inherent risks, as indicated by the portfolio's balanced risk score. The days contributing most to returns highlight the portfolio's sensitivity to market highs but also underscore the importance of staying invested over the long term to capture these gains. Comparing this performance to benchmarks would further contextualize its success, especially during volatile market periods.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of potential outcomes. While past performance is not indicative of future results, these projections offer a useful perspective on risk and potential growth. The simulations suggest a high likelihood of positive returns, with a median projected increase significantly above the initial investment. However, investors should consider the range of outcomes, especially the lower percentiles, to understand potential downside risks.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's allocation is almost entirely in stocks (99%), with a minimal cash holding. This heavy stock allocation is appropriate for growth-focused investors but comes with higher volatility. The lack of bonds or alternative investments limits diversification benefits that could reduce portfolio volatility. For a balanced portfolio, considering a small allocation to bonds or real estate could provide a cushion during stock market downturns, potentially smoothing out returns over time.

Sectors Info

  • Technology
    34%
  • Financials
    12%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Industrials
    9%
  • Health Care
    7%
  • Consumer Staples
    5%
  • Basic Materials
    3%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%

The sectoral allocation, with a strong emphasis on technology, financial services, and consumer cyclicals, positions the portfolio for growth. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or economic cycles affecting tech and consumer discretionary spending. Diversifying more evenly across sectors could reduce volatility without significantly compromising growth potential, especially in sectors like healthcare and industrials, which offer stability and growth opportunities.

Regions Info

  • North America
    72%
  • Europe Developed
    12%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic exposure is heavily weighted towards North America, with significant positions in developed Europe and emerging Asia. This distribution supports diversification but is somewhat conservative with limited exposure to high-growth emerging markets. Increasing allocations to Asia Emerging and Latin America could offer higher growth potential, albeit with increased risk. This adjustment would be particularly relevant for investors with a long-term horizon and a tolerance for volatility.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    31%
  • Mid-cap
    16%
  • Small-cap
    3%
  • Micro-cap
    1%

The focus on mega and big-cap companies (78% combined) aligns with the portfolio's balanced risk profile, offering stability and potential for growth. However, the limited exposure to small and micro-cap stocks restricts opportunities for outsized gains typical of these segments. Introducing a modest allocation to smaller caps could enhance returns over the long term, albeit at a higher risk level, which should be carefully considered against the investor's risk tolerance.

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, the portfolio appears well-positioned for a balanced risk-return profile. However, there's always room for optimization, especially in enhancing diversification and reducing volatility. Adjusting allocations among the current assets could improve the risk-return ratio. It's important to remember that optimization is based on historical data, which may not predict future performance accurately but can guide strategic adjustments.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.40%

The portfolio's average dividend yield of 1.40% contributes to its total returns, with the international stock ETF offering the highest yield. While dividends are not the primary focus, they offer a steady income stream and can provide some downside protection in volatile markets. For investors seeking both growth and income, maintaining or slightly increasing the allocation to higher-yielding assets could be beneficial, especially in a low-interest-rate environment.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • 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) 0.08%

The portfolio's total expense ratio (TER) of 0.08% is impressively low, enhancing long-term returns by minimizing costs. This cost efficiency is crucial for maximizing the compounding effect of investments over time. Investors should continue to monitor fees and consider them in any future allocation decisions or when exploring new investment opportunities.

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