A balanced portfolio with a strong focus on precious metals and technology stocks

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 suits an investor with a balanced risk profile who is seeking growth through a combination of equities and precious metals. The investor likely has a medium to long-term investment horizon and is comfortable with significant exposure to the technology sector and precious metals. Such an investor is willing to accept higher volatility in exchange for the potential of above-average returns.

Positions

  • Vanguard Total Stock Market Index Fund ETF Shares
    VTI - US9229087690
    28.00%
  • Vanguard S&P 500 ETF
    VOO - US9229083632
    22.00%
  • iShares Silver Trust
    SLV - US46428Q1094
    17.50%
  • SPDR® Gold Shares
    GLD - US78463V1070
    15.00%
  • Lam Research Corp
    LRCX - US5128073062
    12.00%
  • Vanguard Information Technology Index Fund ETF Shares
    VGT - US92204A7028
    5.50%

This portfolio is uniquely structured, with a significant emphasis on precious metals and technology. The allocation includes 28% in a total stock market ETF and 22% in an S&P 500 ETF, showcasing a strong foundation in U.S. equities. However, the portfolio stands out for its substantial investment in precious metals, with 17.5% in silver and 15% in gold ETFs. Additionally, a notable 12% is invested in a single technology stock, Lam Research Corp, complemented by 5.5% in a technology sector ETF. This composition indicates a single-focused diversification strategy, leaning heavily towards technology and precious metals.

Growth Info

Historically, the portfolio has exhibited a Compound Annual Growth Rate (CAGR) of 18.39%, with a maximum drawdown of -35.92%. These figures suggest a relatively high return potential but also significant risk, as evidenced by the substantial drawdown. The days contributing to 90% of returns being concentrated in just 44 days further underscore the portfolio's volatility. Such performance metrics are indicative of the portfolio's aggressive growth strategy, which may not be suitable for all investors.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio has a wide range of outcomes. The 50th percentile projection suggests a 1,062% return, indicating strong growth potential. However, it's crucial to understand that these projections are based on past performance, which is not a reliable indicator of future results. The simulation's optimistic view should be balanced with an understanding of inherent market uncertainties.

Asset classes Info

  • Stocks
    67%
  • Other
    33%
  • Cash
    0%

The portfolio's asset allocation is divided into 67% stocks and 33% other, primarily precious metals. This allocation indicates a higher risk tolerance, as stocks and precious metals can exhibit significant price volatility. While the "other" category helps diversify away from purely stock-based risk, the heavy concentration in precious metals is unusual and may not provide the broad-based diversification benefits typically sought through asset class diversification.

Sectors Info

  • Technology
    35%
  • Financials
    7%
  • Consumer Discretionary
    5%
  • Telecommunications
    5%
  • Health Care
    5%
  • Industrials
    4%
  • Consumer Staples
    2%
  • Energy
    1%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

Sector-wise, the portfolio is heavily weighted towards technology, constituting 35% of the allocation. This concentration in technology, alongside smaller exposures to financial services, consumer cyclicals, and other sectors, suggests a growth-oriented strategy. However, such a heavy reliance on a single sector increases the portfolio's susceptibility to sector-specific risks, including regulatory changes and technological disruptions.

Regions Info

  • North America
    67%
  • Europe Developed
    0%
  • Asia Developed
    0%
  • Latin America
    0%
  • Asia Emerging
    0%

Geographically, the portfolio is almost entirely focused on North America (67%), with no exposure to developed Europe, Asia, or emerging markets. This geographic concentration enhances exposure to U.S. market performance but limits potential benefits from global diversification. Expanding geographic exposure could mitigate risks associated with regional economic downturns and provide access to growth opportunities in other parts of the world.

Market capitalization Info

  • Large-cap
    29%
  • Mega-cap
    25%
  • Unknown
    15%
  • Mid-cap
    10%
  • Small-cap
    2%
  • Micro-cap
    1%

The market capitalization breakdown shows a preference for big (29%) and mega-cap (25%) companies, with minimal exposure to small and micro-cap stocks. This bias towards larger companies may contribute to stability during market fluctuations but could limit potential high-growth opportunities found in smaller cap stocks. Diversifying across different market caps could enhance the portfolio's growth potential while managing risk.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The portfolio contains highly correlated assets, particularly between the Vanguard S&P 500 ETF and the Vanguard Total Stock Market Index Fund ETF Shares. This redundancy may limit diversification benefits, as these assets tend to move in tandem. Reducing overlap by reallocating investments from one of these ETFs could enhance the portfolio's diversification without significantly altering its risk-return profile.

Dividends Info

  • Lam Research Corp 0.60%
  • Vanguard Information Technology Index Fund ETF Shares 0.40%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Weighted yield (per year) 0.64%

The dividend yield across the portfolio averages to 0.64%, with individual yields ranging from 0.40% to 1.10%. While dividends contribute to total return, the portfolio's yield is relatively modest, reflecting its growth orientation over income generation. Investors seeking higher income may consider reallocating towards assets with higher dividend yields.

Ongoing product costs Info

  • SPDR® Gold Shares 0.40%
  • iShares Silver Trust 0.50%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.17%

The portfolio's total expense ratio (TER) averages to 0.17%, which is relatively low, indicating cost efficiency in fund selection. Lower costs can significantly enhance long-term returns by reducing the drag on performance. This cost structure is commendable and suggests a thoughtful approach to selecting investment vehicles.

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 could benefit from optimization to improve its risk-return profile. The Efficient Frontier suggests that reallocating investments to reduce overlap in highly correlated assets could enhance returns for a given level of risk. Focusing on diversifying across more asset classes, sectors, and geographies could further optimize the portfolio's performance.

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