This portfolio has only about 1.6 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

A balanced portfolio with a focus on mid-cap ETFs and a minor exposure to Bitcoin

Report created on Aug 4, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

The portfolio is predominantly invested in ETFs, with a significant allocation towards American Century ETF Trust and mid-cap value funds, indicating a focus on medium-sized companies. The inclusion of extended duration treasury and short-term treasury bond ETFs suggests a strategy to balance equity risk with fixed income securities. The small allocation to Bitcoin represents an exploratory approach to alternative investments. This composition underscores a strategy aimed at capturing growth while mitigating risk through diversification across asset classes, though it leans heavily towards stocks.

Growth Info

Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 13.60%, with a maximum drawdown of -14.07%. This performance suggests resilience in volatile markets, with the portfolio recovering from downturns to achieve strong growth. The concentration in mid-cap stocks likely contributed to this performance, as these companies can offer a balance between the growth potential of small caps and the stability of large caps. However, the days contributing to 90% of returns being so few highlight the impact of significant market events on performance.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of potential future outcomes, suggest a wide variance in possible portfolio values. With 991 out of 1,000 simulations showing positive returns, the portfolio appears to have a strong likelihood of future growth. However, the reliance on past performance to inform these projections comes with limitations, as future market conditions can diverge significantly from historical trends.

Asset classes Info

  • Stocks
    86%
  • Bonds
    10%
  • Cash
    3%
  • Other
    1%

The portfolio's asset allocation is heavily skewed towards stocks (86%), with a moderate presence in bonds (10%) and a minor allocation in cash (3%). This allocation aligns with a balanced risk profile aiming for growth while seeking to cushion against market volatility through fixed income securities. The minimal exposure to alternative assets (1%) introduces a non-traditional element, potentially enhancing returns or diversification but also adding complexity and risk.

Sectors Info

  • Industrials
    18%
  • Financials
    18%
  • Consumer Discretionary
    10%
  • Basic Materials
    8%
  • Technology
    7%
  • Health Care
    7%
  • Consumer Staples
    6%
  • Energy
    5%
  • Utilities
    3%
  • Telecommunications
    3%
  • Real Estate
    2%

Sectoral distribution is broad, with industrials and financial services each constituting 18% of the portfolio, followed by consumer cyclicals and basic materials. This diversified sector exposure reduces the risk of significant underperformance due to downturns in any single sector. However, the portfolio might benefit from a closer examination of the current market cycle phases to optimize sector allocations according to expected performance.

Regions Info

  • North America
    43%

Geographic allocation is heavily concentrated in North America (43%), with no exposure to emerging Asian markets. This concentration in developed markets may offer stability but could limit growth potential and diversification benefits that emerging markets might provide. Considering global economic shifts and growth opportunities, a reevaluation of geographic exposure could enhance the portfolio's risk-adjusted returns.

Market capitalization Info

  • Mid-cap
    41%
  • Small-cap
    18%
  • Large-cap
    13%
  • Mega-cap
    9%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown shows a preference for medium-sized companies (41%), with smaller allocations to small (18%), big (13%), and mega (9%) cap stocks. This mid-cap focus is in line with the portfolio's balanced risk approach, aiming to harness growth potential while maintaining a level of stability. However, the relatively low exposure to large and mega-cap stocks could limit the portfolio's access to global market leaders and their potential for steady 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.

The portfolio's current expected return falls below that of an optimized portfolio with a similar risk level, suggesting room for improvement in risk-return efficiency. By adjusting allocations within the existing asset mix, the portfolio could potentially achieve an expected return of 4.84% at a risk level of 0.23%. This adjustment would require a strategic rebalance towards assets or sectors with higher expected returns for the given risk level.

Dividends Info

  • American Century ETF Trust 3.40%
  • Vanguard Extended Duration Treasury Index Fund ETF Shares 4.80%
  • iShares® 0-3 Month Treasury Bond ETF 4.10%
  • Vanguard Mid-Cap Value Index Fund ETF Shares 2.20%
  • Invesco S&P MidCap Quality ETF 0.70%
  • Weighted yield (per year) 2.70%

The portfolio's dividend yield stands at an average of 2.70%, with the highest yield from the Vanguard Extended Duration Treasury Index Fund ETF Shares at 4.80%. Dividends contribute to the portfolio's total return, providing a steady income stream and potentially reducing volatility. Given the balanced risk profile, this focus on income-generating assets complements the growth strategy by adding a layer of return stability.

Ongoing product costs Info

  • American Century ETF Trust 0.34%
  • Vanguard Extended Duration Treasury Index Fund ETF Shares 0.06%
  • iShares Bitcoin Trust 0.12%
  • iShares® 0-3 Month Treasury Bond ETF 0.07%
  • Vanguard Mid-Cap Value Index Fund ETF Shares 0.07%
  • Invesco S&P MidCap Quality ETF 0.25%
  • Weighted costs total (per year) 0.22%

The Total Expense Ratio (TER) of 0.22% is relatively low, indicating efficient cost management across the portfolio's ETF holdings. Lower costs translate directly into higher net returns for investors, making this an attractive feature of the portfolio. Continuous monitoring of costs associated with new investments or rebalancing will be crucial in maintaining this efficiency.

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