A balanced and highly diversified portfolio with a strong emphasis on US equities and emerging technology

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.

What type of investor this portfolio is suitable for

Balanced Investors

This portfolio is most suitable for an investor with a balanced risk tolerance, seeking substantial growth over a long-term horizon. The investor likely values a blend of stability and potential high returns, comfortable with market fluctuations inherent in equity-heavy portfolios. The inclusion of cryptocurrency and a focus on technology and financial sectors suggest an openness to embracing newer investment themes alongside traditional stock investments.

Positions

  • Vanguard S&P 500 ETF
    VOO - US9229083632
    61.90%
  • Vanguard Total International Stock Index Fund ETF Shares
    VXUS - US9219097683
    17.31%
  • Fidelity 500 Index Fund
    FXAIX - US3159117502
    7.35%
  • Invesco S&P International Developed Momentum ETF
    IDMO - US46138E2220
    4.77%
  • Invesco S&P 500® Momentum ETF
    SPMO - US46138E3392
    4.51%
  • iShares Bitcoin Trust
    IBIT - US46438F1012
    4.15%

This portfolio showcases a strong inclination towards US equities, with significant positions in the Vanguard S&P 500 ETF and Fidelity 500 Index Fund, highlighting a preference for large-cap stocks. The inclusion of international ETFs, like the Vanguard Total International Stock Index Fund ETF Shares, introduces global exposure, albeit with a heavy tilt towards North America. The presence of the iShares Bitcoin Trust indicates a foray into digital assets, diversifying beyond traditional stock investments. The portfolio's diversification is further enhanced by its spread across various sectors, with technology and financial services leading the pack.

Warning Historical data is limited for this portfolio, which reduces the confidence in the calculated values.

Growth Info

The historical performance of this portfolio, with a Compound Annual Growth Rate (CAGR) of 23.71%, is impressive, significantly outpacing many traditional benchmarks. This performance is accompanied by a maximum drawdown of -17.29%, indicating a relatively high risk-return profile. Notably, the portfolio's returns are concentrated in a few high-performance days, suggesting volatility and the importance of remaining invested during market swings to capture potential gains.

Warning Due to limited historical data, this may show extreme values that are not realistic.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential investment outcomes, project a wide range of future portfolio values. With all simulations showing positive returns and a median projected increase of over 6500%, the portfolio demonstrates strong growth potential. However, it's crucial to remember that such simulations are based on past trends, which are not guaranteed to continue, especially in the unpredictable realm of cryptocurrency.

Asset classes Info

  • Stocks
    95%
  • Other
    4%
  • Cash
    1%
  • No data
    0%

The portfolio's asset allocation is heavily weighted towards stocks (95%), with a minor allocation to 'Other' (4%), likely representing the cryptocurrency investment, and a negligible cash position (1%). This composition underscores a growth-focused strategy but suggests limited liquidity and potential vulnerability to stock market downturns. Diversifying into more asset classes could mitigate risks and smooth out returns over time.

Sectors Info

  • Technology
    27%
  • Financials
    17%
  • Industrials
    9%
  • Consumer Discretionary
    9%
  • Telecommunications
    9%
  • Health Care
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%
  • Consumer Discretionary
    1%

Sector allocation shows a strong emphasis on technology and financial services, sectors known for their growth potential but also for their volatility. The portfolio's performance is likely buoyed by the tech sector's recent bull run, though this concentration could expose it to sector-specific risks. Broadening exposure to include more defensive sectors like utilities or consumer staples might provide balance during market fluctuations.

Regions Info

  • North America
    76%
  • Europe Developed
    10%
  • Japan
    3%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    0%
  • Europe Emerging
    0%

Geographic exposure is predominantly in North America (76%), with modest allocations across developed and emerging markets globally. This North American bias has likely contributed to the portfolio's strong performance, given the robust US stock market. However, increasing exposure to emerging markets and other developed regions could offer additional growth opportunities and hedge against US-centric risks.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    32%
  • Mid-cap
    16%
  • Small-cap
    1%
  • Micro-cap
    0%

The portfolio favors large-cap stocks, with a combined 77% in mega and big-cap categories. This focus on large companies is typically associated with stability and resilience but can limit exposure to the high growth potential of smaller firms. Incorporating more medium, small, or micro-cap stocks could enhance growth prospects and diversification.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Fidelity 500 Index Fund
    High correlation

The high correlation between the Vanguard S&P 500 ETF and the Fidelity 500 Index Fund suggests redundancy, as both track the S&P 500. This overlap does not contribute to diversification and could be an area for optimization by reallocating one of these investments to reduce exposure to identical assets and improve the portfolio's overall risk-adjusted performance.

Dividends Info

  • Fidelity 500 Index Fund 0.90%
  • Invesco S&P International Developed Momentum ETF 2.00%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.42%

The portfolio's average dividend yield of 1.42% contributes to its total returns, balancing the growth-focused strategy with income generation. Dividend yields vary across holdings, with international funds offering higher yields, reflecting their value orientation. For investors seeking income, maintaining or increasing allocations to higher-yielding assets could be beneficial.

Ongoing product costs Info

  • Fidelity 500 Index Fund 0.02%
  • iShares Bitcoin Trust 0.12%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.05%

With an overall Total Expense Ratio (TER) of 0.05%, the portfolio benefits from low costs, which is commendable. Lower costs translate directly into higher net returns over time, emphasizing the efficiency of investing in low-cost index funds and ETFs. This strategic focus on cost minimization is a best practice in portfolio management, enhancing long-term growth potential.

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.

The portfolio's current allocation suggests an opportunity to optimize by addressing the high correlation between certain assets. Employing the Efficient Frontier concept could help in reallocating assets to achieve an optimal risk-return profile. This might involve reducing overlap in S&P 500 exposures and diversifying into underrepresented sectors or asset classes, aligning more closely with the investor's risk tolerance and growth objectives.

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