Balanced yet dynamic portfolio with a strategic blend of global equities and bonds

Report created on Jul 29, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

Your portfolio showcases a strategic blend of 91% stocks and 9% bonds, leaning heavily towards equities for growth while maintaining a small bond allocation for stability. The dominance of ETFs, particularly the iShares Core Aggressive Allocation ETF as half of your portfolio, suggests a preference for diversified, aggressive growth strategies. The geographic and sector diversification further enhances your portfolio's resilience against market volatility, with a notable emphasis on technology and financial services sectors.

Growth Info

Historically, your portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 10.29%, with a maximum drawdown of -31.94%. These figures highlight a robust performance, albeit with significant volatility. The days contributing to 90% of returns being concentrated in just 25 days indicates that your portfolio's performance is heavily reliant on short, sharp market movements, underscoring the importance of timing and market conditions in your investment strategy.

Projection Info

Utilizing Monte Carlo simulations, which project future performance based on historical data, your portfolio shows a wide range of outcomes. The median projection suggests a 291.5% return, with a 67th percentile at 406.2%, indicating strong potential growth. However, it's crucial to remember that these projections are hypothetical and subject to the limitations of past performance data, which may not accurately predict future market movements.

Asset classes Info

  • Stocks
    91%
  • Bonds
    9%

The allocation across asset classes in your portfolio is well-considered, with a heavy emphasis on stocks for growth, complemented by bonds for risk mitigation. This allocation aligns with a balanced investment strategy that seeks to capitalize on the growth potential of equities while using bonds to cushion against market downturns. The minimal bond allocation reflects a higher risk tolerance, aiming for significant growth over stability.

Sectors Info

  • Technology
    21%
  • Financials
    17%
  • Industrials
    14%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Basic Materials
    5%
  • Real Estate
    4%
  • Energy
    4%
  • Utilities
    3%

Your sectoral allocation demonstrates a well-rounded approach, with the highest weightings in technology and financial services. This concentration in sectors known for volatility but also significant growth potential suggests a strategy geared towards capital appreciation. However, the diversification across 11 sectors helps mitigate sector-specific risks, aligning with a balanced risk profile.

Regions Info

  • North America
    50%
  • Europe Developed
    28%
  • Japan
    11%
  • Australasia
    4%
  • Asia Developed
    3%
  • Asia Emerging
    3%
  • Africa/Middle East
    1%

Geographic diversification enhances your portfolio's resilience, with a balanced exposure across North America, Europe Developed, and emerging markets. This global spread helps in capturing growth opportunities worldwide while mitigating the impact of regional downturns. However, the heavy weighting towards North America reflects a home bias, which, while common, could limit exposure to potential growth in emerging markets.

Market capitalization Info

  • Mega-cap
    33%
  • Large-cap
    24%
  • Mid-cap
    21%
  • Small-cap
    9%
  • Micro-cap
    2%

The market capitalization breakdown shows a diversified exposure across mega, big, medium, small, and micro-cap stocks. This wide range suggests a strategy that balances the stability of large-cap companies with the growth potential of smaller companies. However, the emphasis on larger companies aligns with the portfolio's overall balanced but growth-oriented approach.

Redundant positions Info

  • iShares Core Aggressive Allocation ETF
    Schwab U.S. Broad Market ETF
    High correlation

The high correlation observed between the iShares Core Aggressive Allocation ETF and the Schwab U.S. Broad Market ETF indicates overlapping investments that may not provide the diversification benefits expected. This redundancy could expose your portfolio to higher risk during market downturns, as these assets may move in tandem, reducing the effectiveness of your diversification strategy.

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.

Optimization analysis suggests that your portfolio could achieve a more efficient risk-return profile. By addressing the overlap in highly correlated assets, you can enhance diversification and potentially increase your expected return to 15.06% without taking on disproportionate risk. This adjustment would not only improve diversification but also align your portfolio closer to the Efficient Frontier, where the optimal risk-return balance is achieved.

Dividends Info

  • iShares Core Aggressive Allocation ETF 2.20%
  • iShares Core MSCI EAFE ETF 3.10%
  • iShares MSCI Intl Small-Cap Multifactor ETF 4.00%
  • Schwab U.S. Broad Market ETF 1.20%
  • Weighted yield (per year) 2.50%

The dividend yields across your ETFs contribute to your portfolio's total yield of 2.50%, offering a steady income stream in addition to potential capital gains. This blend of growth and income aligns with a balanced investment strategy, providing both stability through regular income and the opportunity for asset appreciation.

Ongoing product costs Info

  • iShares Core Aggressive Allocation ETF 0.15%
  • iShares Core MSCI EAFE ETF 0.07%
  • iShares MSCI Intl Small-Cap Multifactor ETF 0.23%
  • Schwab U.S. Broad Market ETF 0.03%
  • Weighted costs total (per year) 0.13%

With a total Expense Ratio (TER) of 0.13%, your portfolio benefits from relatively low costs, enhancing its long-term return potential. This cost efficiency is crucial for maximizing net returns, especially considering the compound effect of fees over time. Your attention to keeping costs low is commendable and supports better long-term performance.

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