A balanced portfolio with a strong focus on US stocks and technology sector

Report created on Aug 1, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards the iShares Core S&P Total U.S. Stock Market ETF, making up 80% of the investment, with the remaining 20% allocated to the iShares Core MSCI Total International Stock ETF. This composition reflects a strong bias towards U.S. equities, with a broad diversification across sectors and a notable emphasis on technology. The allocation across only two ETFs simplifies management but concentrates risk in the performance of these indices.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 12.64% and a maximum drawdown of -34.79%, the portfolio has demonstrated robust growth with significant volatility. The days contributing to 90% of returns highlight the impact of short-term gains on overall performance. This historical performance, while impressive, underscores the portfolio's susceptibility to market swings, particularly in the technology sector.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 280.7% in portfolio value. This method, which uses historical data to forecast future performance, suggests a strong potential for growth but also underscores the inherent uncertainty in investing. Investors should interpret these projections with caution, as they are based on past events and cannot account for unforeseen market changes.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, offering high growth potential but also higher volatility compared to portfolios that include bonds or other asset classes. This singular focus on equities is suitable for investors with a higher risk tolerance and a long-term investment horizon, as it lacks the cushion against market downturns that fixed-income investments can provide.

Sectors Info

  • Technology
    29%
  • Financials
    16%
  • Consumer Discretionary
    11%
  • Industrials
    10%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    3%
  • Utilities
    2%

Sector allocation is heavily tilted towards technology, financial services, and consumer cyclicals, reflecting a growth-oriented strategy. However, this concentration increases susceptibility to sector-specific downturns. Diversifying across a broader range of sectors could mitigate some of this risk, potentially smoothing out returns over time.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

The geographic distribution is predominantly in North America (81%), with modest exposure to international markets. This U.S.-centric approach has historically offered strong returns but may limit global diversification benefits. Increasing allocations to developed and emerging markets outside the U.S. could offer exposure to different economic cycles and growth opportunities.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    31%
  • Mid-cap
    19%
  • Small-cap
    6%
  • Micro-cap
    2%

The emphasis on mega and big cap stocks (73% combined) suggests a focus on established, large-scale companies, likely contributing to the portfolio's solid historical performance. However, integrating medium, small, or micro-cap stocks could offer higher growth potential and further diversification, albeit with increased risk.

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.

Based on the Efficient Frontier, the current allocation suggests potential for optimization towards a more efficient risk-return ratio. Adjusting the balance between U.S. and international exposure, as well as diversifying across more sectors and asset classes, could enhance the portfolio's performance relative to its risk level.

Dividends Info

  • iShares Core S&P Total U.S. Stock Market ETF 1.20%
  • iShares Core MSCI Total International Stock ETF 3.10%
  • Weighted yield (per year) 1.58%

The dividend yields, averaging 1.58% across the portfolio, contribute to total returns and provide a modest income stream. In a growth-focused portfolio, dividends play a secondary role to capital appreciation but offer a welcome buffer during market fluctuations.

Ongoing product costs Info

  • iShares Core S&P Total U.S. Stock Market ETF 0.03%
  • iShares Core MSCI Total International Stock ETF 0.07%
  • Weighted costs total (per year) 0.04%

With a total expense ratio (TER) of 0.04%, the portfolio benefits from exceptionally low costs, maximizing net returns for investors. This cost efficiency is a significant advantage, particularly over the long term, as even small differences in fees can have a substantial impact on compound growth.

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