A broadly diversified equity portfolio with metals hedge aiming for balanced growth and moderate volatility

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 setup suits an investor with moderate risk tolerance who is comfortable with sizeable equity exposure and some volatility, but still wants a buffer against extreme events. Typical goals might include long‑term wealth building for retirement, funding education, or major life milestones over a 10‑plus‑year horizon. The focus on broad, low‑cost stock exposure combined with a metals hedge fits someone who believes in markets over time yet appreciates an extra layer of crisis protection. This investor values diversification, accepts occasional drawdowns of 30% or more, and is willing to stay invested through downturns rather than making frequent tactical moves.

Positions

  • Schwab U.S. Broad Market ETF
    SCHB - US8085241029
    50.00%
  • Schwab Fundamental International Large Company Index ETF
    FNDF - US8085247554
    30.00%
  • SPDR® Gold Shares
    GLD - US78463V1070
    10.00%
  • iShares Silver Trust
    SLV - US46428Q1094
    10.00%

This portfolio is clearly growth‑oriented, with 80% in stocks and 20% in precious metals, and no bonds or cash. The largest position is a broad U.S. stock ETF at 50%, paired with 30% in international large companies and 20% in gold and silver. This structure resembles a balanced growth setup but replaces bonds with metals as the risk dampener. That is unusual but can still smooth returns in some crises. To align more closely with typical balanced benchmarks, gradually adding a dedicated defensive sleeve, such as lower‑volatility assets or cash‑like holdings, could help reduce drawdowns without giving up too much long‑term growth potential.

Growth Info

Historically, this mix has been very strong: a 14.25% compound annual growth rate (CAGR) means 10,000 dollars could have grown to around 38,000 over ten years. CAGR is like the average speed on a road trip, smoothing out the bumps. At the same time, a maximum drawdown of about –32% shows that during tough markets, the portfolio can still fall significantly, though this is fairly normal for equity‑heavy allocations. The fact that 90% of returns came from just 41 days underlines how missing a few strong days can hurt results. Staying invested through volatility is crucial for capturing this historically attractive return profile.

Projection Info

The Monte Carlo analysis, which runs 1,000 random “what‑if” paths using historical patterns, shows a wide range of possible outcomes. The median path (50th percentile) ends at about 550% of the starting value, while the pessimistic 5th percentile still ends at roughly 94%, meaning only a small loss over the period modeled. An average simulated annual return of about 15.9% looks impressive, but it relies on past behavior repeating. Monte Carlo is useful to visualize risk, not to predict the future. Treat these numbers as rough scenarios and regularly recheck whether the risk level still fits your comfort and life situation.

Asset classes Info

  • Stocks
    80%
  • Other
    20%
  • Bonds
    0%
  • Cash
    0%
  • No data
    0%

The portfolio’s asset class split is simple: 80% stock, 20% “other” (gold and silver), and 0% in bonds or cash. Compared with many balanced benchmarks, which often hold 30–40% bonds, this construction leans more toward equity‑driven growth and volatility. The metals sleeve is a creative substitute for bonds, offering potential crisis protection and inflation hedging, but it does not provide income or the same stabilizing effect as high‑quality bonds. This allocation is well‑balanced and aligns closely with global standards on the equity side, yet adding even a modest portion of high‑quality defensive assets could improve resilience in deep stock market downturns.

Sectors Info

  • Technology
    20%
  • Financials
    12%
  • Industrials
    9%
  • Consumer Discretionary
    9%
  • Health Care
    7%
  • Telecommunications
    7%
  • Energy
    4%
  • Consumer Staples
    4%
  • Basic Materials
    4%
  • Utilities
    2%
  • Real Estate
    1%

Sector exposure is broad and healthy: technology leads at 20%, followed by financial services, industrials, and consumer cyclicals, with healthcare and communication services also well represented. Smaller slices in energy, consumer defensive, materials, utilities, and real estate provide additional diversification. This sector mix is similar to common global benchmarks, which is a strong indicator of diversification and reduces the risk of any single industry driving performance. However, tech‑heavy allocations can be more sensitive when interest rates rise or growth expectations cool. A periodic check that no single sector meaningfully drifts far above global norms can help keep risk aligned with a balanced profile.

Regions Info

  • North America
    53%
  • Europe Developed
    15%
  • Japan
    7%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    0%
  • Europe Emerging
    0%
  • Asia Emerging
    0%
  • Latin America
    0%

Geographically, the portfolio leans toward North America at 53%, with meaningful exposure to developed Europe and Japan and small allocations to other developed regions. There is essentially no exposure to emerging markets such as Latin America, emerging Asia, or Africa/Middle East. This alignment with developed‑market benchmarks supports stability and transparency, which many investors prefer. However, it also misses the long‑term growth potential and diversification benefits that some emerging markets may offer. Gradually introducing a modest slice of diversified emerging‑market stocks could broaden the global footprint without overturning the current developed‑market focus or risk level.

Market capitalization Info

  • Mega-cap
    33%
  • Large-cap
    27%
  • Mid-cap
    14%
  • Unknown
    10%
  • Small-cap
    3%
  • Micro-cap
    1%

The market capitalization breakdown shows a healthy tilt to larger companies: about 60% in mega and big caps, with moderate exposure to mid caps and smaller pieces in small and micro caps. Large caps typically bring stability and easier information access, while mids and smalls can add growth and diversification but also more volatility. Around 10% sits in “unknown,” likely tied to the metals positions that do not map neatly to company sizes. This structure is similar to broad global benchmarks and is a strong sign of sensible diversification. Keeping this mix roughly stable over time helps avoid overconcentration in very volatile small names.

Dividends Info

  • Schwab Fundamental International Large Company Index ETF 0.50%
  • Schwab U.S. Broad Market ETF 1.10%
  • Weighted yield (per year) 0.70%

The overall dividend yield of about 0.7% is on the low side, especially compared with more income‑oriented portfolios. Yield is the cash payout you get each year relative to your investment value, like rent from a property. Here, the focus is clearly on total return through price growth rather than steady cashflow, which fits a growth‑tilted, balanced profile. This is well aligned with investors who are still accumulating rather than relying on income. If regular cash payouts become more important in the future, gradually increasing the weight of higher‑yielding equity or defensive holdings could support a smoother income stream.

Ongoing product costs Info

  • Schwab Fundamental International Large Company Index ETF 0.25%
  • SPDR® Gold Shares 0.40%
  • Schwab U.S. Broad Market ETF 0.03%
  • iShares Silver Trust 0.50%
  • Weighted costs total (per year) 0.18%

The weighted average total expense ratio (TER) of about 0.18% is impressively low and a big strength. TER is like an annual service fee charged by the funds. Keeping these fees small means more of the return stays in your pocket year after year. The broad U.S. ETF is especially cost‑efficient at 0.03%, helping to offset the higher costs of gold and silver ETFs. Over long periods, even a 0.3–0.5 percentage point difference in fees can translate into thousands of dollars of extra value. Maintaining this cost discipline and avoiding unnecessary high‑fee products strongly supports better long‑term performance.

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.

From a risk‑return perspective, this portfolio sits in a relatively efficient area, but there may still be room for fine‑tuning along the Efficient Frontier. The Efficient Frontier is a curve that shows the best possible trade‑off between risk and return for a given set of assets, assuming only the current holdings and shifting their weights. Here, metals replace bonds as the main stabilizer, which can be efficient in some regimes but less so in others. Slightly reducing metals in favor of a modest defensive or income‑oriented sleeve could push the mix closer to the frontier by trimming downside risk for a similar expected return.

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