Balanced portfolio with a strong tilt towards US equities and tech, diversified across asset classes and geographies

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 best suited for an investor with a balanced risk tolerance, looking for growth while being mindful of volatility. The investor likely has a medium to long-term investment horizon, allowing them to weather short-term market fluctuations in pursuit of substantial growth. This individual is comfortable with a heavy allocation to equities, particularly in the U.S. market, but is also open to exploring international opportunities and emerging technologies for diversification and potential upside.

Positions

  • iShares Core S&P 500 ETF
    IVV - US4642872000
    17.00%
  • iShares S&P 500 Growth ETF
    IVW - US4642873099
    17.00%
  • iShares S&P 500 Value ETF
    IVE - US4642874089
    15.00%
  • BlackRock US Equity Factor Rotation
    DYNF - US09290C1036
    11.00%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares
    VWO - US9220428588
    8.00%
  • iShares MSCI EAFE Value ETF
    EFV - US4642888774
    7.00%
  • iShares MSCI EAFE Growth ETF
    EFG - US4642888857
    6.00%
  • iShares U.S. Thematic Rotation Active ETF
    THRO
    5.00%
  • iShares Future AI & Tech ETF
    ARTY - US46435U5561
    4.00%
  • Global X Funds
    SHLD - US37960A5294
    3.00%
  • BlckRck Rl Est Scrts Fd Instnl Shrs
    BIREX - US0919365835
    2.00%
  • iShares Bitcoin Trust
    IBIT - US46438F1012
    2.00%
  • Global X U.S. Infrastructure Development ETF
    PAVE - US37954Y6730
    2.00%
  • iShares® 0-3 Month Treasury Bond ETF
    SGOV - US46436E7186
    1.00%

The portfolio is heavily weighted towards U.S. equities, particularly within the S&P 500, spanning growth, value, and core ETFs. This strong focus on the U.S. market is balanced by strategic allocations in emerging markets, developed international markets, and specific sectors like technology and real estate. The inclusion of thematic ETFs, such as those focusing on AI, tech, and infrastructure, alongside a small position in Bitcoin, indicates a forward-looking approach. However, the presence of highly correlated assets raises questions about the true diversification benefits of the current allocation.

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

Growth Info

With a historical Compound Annual Growth Rate (CAGR) of 23.44% and a maximum drawdown of -16.96%, the portfolio has demonstrated robust growth potential while maintaining a balanced risk profile. The days contributing most to returns highlight the portfolio's sensitivity to market highs but also underscore its resilience during downturns. This performance, especially in comparison to benchmarks, suggests a well-constructed strategy that leverages market cycles effectively.

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

Projection Info

The Monte Carlo simulation, using historical data to project future outcomes, forecasts a wide range of potential returns, with a median annualized return of 28.06%. While such simulations provide valuable insights, it's crucial to remember that they are based on past performance, which is not a reliable indicator of future results. The simulation's optimistic projections underscore the portfolio's growth potential but also highlight the need for ongoing risk management.

Asset classes Info

  • Stocks
    96%
  • Other
    2%
  • Cash
    2%
  • Bonds
    0%

The portfolio's asset allocation leans heavily towards stocks (96%), with a minor allocation to 'Other' and cash, and no bond holdings. This composition aligns with a growth-oriented strategy but may expose the portfolio to higher volatility. Diversifying into bonds or other less volatile asset classes could provide a buffer against market downturns, enhancing the portfolio's risk-adjusted returns over the long term.

Sectors Info

  • Technology
    31%
  • Financials
    13%
  • Industrials
    12%
  • Consumer Discretionary
    9%
  • Telecommunications
    9%
  • Health Care
    7%
  • Consumer Staples
    4%
  • Real Estate
    4%
  • Basic Materials
    3%
  • Energy
    2%
  • Utilities
    2%

Sector allocation reveals a significant emphasis on technology, financial services, and industrials. This concentration in tech and cyclical sectors suggests a higher growth potential but also a higher risk, especially during economic downturns or sector-specific shocks. Broadening the sector exposure, particularly towards defensive sectors like healthcare and consumer staples, could mitigate some of this risk.

Regions Info

  • North America
    74%
  • Europe Developed
    10%
  • Asia Emerging
    5%
  • Japan
    3%
  • Asia Developed
    2%
  • Africa/Middle East
    1%
  • Australasia
    1%
  • Latin America
    1%
  • Europe Emerging
    0%

Geographic distribution shows a heavy tilt towards North America (74%), with smaller allocations in developed Europe, emerging Asia, and other regions. This U.S.-centric approach has likely contributed to the portfolio's strong performance but also increases vulnerability to regional economic trends. Expanding exposure to emerging markets and other developed regions could enhance global diversification and potentially unlock new growth avenues.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    33%
  • Mid-cap
    16%
  • Small-cap
    3%
  • Micro-cap
    0%

The portfolio's market capitalization breakdown—dominated by mega (44%) and big cap (33%) stocks—supports its balanced risk profile, leveraging the stability of large-cap companies while capturing growth opportunities in medium to smaller caps. However, the relatively small allocation to small and micro caps limits exposure to high-growth potential sectors, which could be incrementally increased to boost overall growth prospects.

Redundant positions Info

  • iShares S&P 500 Growth ETF
    BlackRock US Equity Factor Rotation
    iShares U.S. Thematic Rotation Active ETF
    iShares Core S&P 500 ETF
    High correlation

The high correlation among several ETFs, especially those tracking the S&P 500 and related strategies, suggests redundancy that may not be contributing to portfolio diversification. Reducing overlap by consolidating similar ETFs or reallocating to less correlated assets could enhance the portfolio's efficiency, potentially reducing volatility without sacrificing expected returns.

Dividends Info

  • BlckRck Rl Est Scrts Fd Instnl Shrs 1.40%
  • BlackRock US Equity Factor Rotation 1.00%
  • iShares MSCI EAFE Growth ETF 1.50%
  • iShares MSCI EAFE Value ETF 3.30%
  • iShares Future AI & Tech ETF 0.10%
  • iShares S&P 500 Value ETF 1.70%
  • iShares Core S&P 500 ETF 1.10%
  • iShares S&P 500 Growth ETF 0.40%
  • Global X U.S. Infrastructure Development ETF 0.50%
  • iShares® 0-3 Month Treasury Bond ETF 4.30%
  • Global X Funds 0.20%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.80%
  • iShares U.S. Thematic Rotation Active ETF 0.60%
  • Weighted yield (per year) 1.29%

The portfolio's dividend yield strategy is diversified, with yields ranging from 0.10% to 4.30% across different holdings. This approach contributes to the portfolio's total return, providing a steady income stream alongside capital appreciation. Given the current yield landscape, the portfolio's average yield is reasonable, but there may be opportunities to optimize income generation without significantly altering the risk profile.

Ongoing product costs Info

  • BlckRck Rl Est Scrts Fd Instnl Shrs 0.75%
  • BlackRock US Equity Factor Rotation 0.30%
  • iShares MSCI EAFE Growth ETF 0.36%
  • iShares MSCI EAFE Value ETF 0.34%
  • iShares Bitcoin Trust 0.12%
  • iShares Future AI & Tech ETF 0.47%
  • iShares S&P 500 Value ETF 0.18%
  • iShares Core S&P 500 ETF 0.03%
  • iShares S&P 500 Growth ETF 0.18%
  • Global X U.S. Infrastructure Development ETF 0.47%
  • iShares® 0-3 Month Treasury Bond ETF 0.07%
  • Global X Funds 0.50%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.21%

With a total expense ratio (TER) averaging 0.21%, the portfolio is cost-efficient, minimizing the drag on returns from management fees. This low-cost approach is commendable, especially given the diversified asset base. Continual monitoring of fees, especially for actively managed or niche ETFs, will ensure that costs remain aligned with the value provided.

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 alignment with the Efficient Frontier suggests that it is not fully optimized for the best possible risk-return ratio. Addressing the identified issues, particularly the high correlation between assets, could lead to a more efficient portfolio. By reallocating funds from overlapping assets to underrepresented sectors, regions, or asset classes, the portfolio could achieve a higher expected return for the same level of risk.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.