Balanced and broadly diversified portfolio with a focus on stocks across multiple regions

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 to slightly aggressive risk tolerance, aiming for substantial capital growth over the long term. The investor likely has a medium to long investment horizon, allowing them to weather potential volatility in pursuit of higher returns. This profile fits someone comfortable with significant equity exposure and the accompanying risks, seeking diversified global opportunities without a strong need for immediate income.

Positions

  • Dimensional ETF Trust - Dimensional Emerging Markets Core Equity 2 ETF
    DFEM - US25434V7322
    30.00%
  • FIDELITY LARGE CAP VALUE INDEX FUND INSTITUTIONAL PREMIUM CLASS
    FLCOX - US31635V6790
    15.00%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS
    FSPGX - US31635V7293
    15.00%
  • Dimensional International Core Equity Market ETF
    DFAI - US25434V2034
    10.00%
  • FIDELITY SMALL CAP VALUE FUND FIDELITY SMALL CAP VALUE FUND
    FCPVX - US3163898329
    10.00%
  • GOLD PORTFOLIO GOLD PORTFOLIO
    FSAGX - US3163907807
    10.00%
  • Invesco S&P 500® Momentum ETF
    SPMO - US46138E3392
    10.00%

This portfolio exhibits a strong preference for equities, with a 100% allocation towards stocks, spanning across a variety of sectors and geographies. The diversification is further enhanced by a mix of ETFs and funds, focusing on emerging markets, large-cap value and growth, international core equity, small-cap value, gold, and momentum strategies. This structure aligns with a balanced risk profile, aiming to mitigate volatility through broad exposure while seeking growth opportunities across different market conditions.

Growth Info

The historical performance, marked by a Compound Annual Growth Rate (CAGR) of 16.24%, is impressive, particularly when considering the maximum drawdown of -18.54%. This indicates a relatively high return for the level of risk taken, especially in comparison to typical benchmarks. The days contributing to 90% of returns highlight the portfolio's potential for significant gains on specific, albeit limited, occasions, suggesting a level of volatility that has been well-managed to achieve strong growth.

Projection Info

Monte Carlo simulations, based on historical data, suggest a wide range of potential outcomes, with the median scenario indicating a 777.2% increase. This optimistic projection underscores the portfolio's growth potential but also reflects the inherent uncertainty in predicting future market movements. While these simulations offer valuable insights, it's crucial to remember that they are based on past performance, which is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    100%
  • Cash
    0%
  • Other
    0%
  • No data
    0%

The exclusive focus on stocks within this portfolio underscores a strategy aimed at capital growth over income generation or capital preservation. This asset class mix is suitable for an investor with a balanced to aggressive risk tolerance, seeking higher returns over the long term. However, the absence of bonds, cash, or alternative investments means there's less cushion against stock market volatility.

Sectors Info

  • Technology
    22%
  • Financials
    17%
  • Basic Materials
    14%
  • Industrials
    10%
  • Telecommunications
    7%
  • Health Care
    6%
  • Consumer Discretionary
    5%
  • Consumer Discretionary
    5%
  • Consumer Staples
    4%
  • Energy
    4%
  • Real Estate
    3%
  • Utilities
    3%

The sectoral allocation demonstrates a well-rounded approach, with significant positions in technology, financial services, and basic materials. This diversity supports resilience against sector-specific downturns. However, the heavy weighting towards technology and financial services, sectors known for their volatility, suggests a higher risk-reward ratio. Balancing these with more defensive sectors could provide additional stability.

Regions Info

  • North America
    59%
  • Asia Emerging
    15%
  • Asia Developed
    10%
  • Europe Developed
    6%
  • Africa/Middle East
    3%
  • Japan
    2%
  • Latin America
    2%
  • Australasia
    1%
  • Europe Emerging
    1%

Geographically, the portfolio is heavily weighted towards North America and emerging markets in Asia, providing a good balance between stable, developed markets and high-growth potential areas. However, the relatively lower exposure to Europe and other developed regions might limit opportunities for risk diversification. Increasing allocations to underrepresented regions could enhance global diversification and potentially reduce geopolitical risks.

Market capitalization Info

  • Mega-cap
    33%
  • Large-cap
    30%
  • Mid-cap
    21%
  • Small-cap
    12%
  • Micro-cap
    4%

The market capitalization breakdown reveals a balanced approach, with a slight preference for mega and big-cap stocks, which tend to be more stable and less volatile than their smaller counterparts. However, the meaningful allocations to medium, small, and micro-cap stocks suggest a strategy that also seeks growth opportunities and diversification benefits from these more dynamic segments of the market.

Dividends Info

  • Dimensional International Core Equity Market ETF 2.50%
  • Dimensional ETF Trust - Dimensional Emerging Markets Core Equity 2 ETF 2.20%
  • FIDELITY SMALL CAP VALUE FUND FIDELITY SMALL CAP VALUE FUND 16.10%
  • FIDELITY LARGE CAP VALUE INDEX FUND INSTITUTIONAL PREMIUM CLASS 1.70%
  • GOLD PORTFOLIO GOLD PORTFOLIO 1.60%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.30%
  • Invesco S&P 500® Momentum ETF 0.70%
  • Weighted yield (per year) 3.05%

The dividend yield analysis reveals a total portfolio yield of 3.05%, with significant variation among the holdings. This indicates a balanced approach towards growth and income, although the focus remains predominantly on capital appreciation. Investors seeking more consistent income might consider increasing allocations to assets with higher dividend yields.

Ongoing product costs Info

  • Dimensional International Core Equity Market ETF 0.18%
  • Dimensional ETF Trust - Dimensional Emerging Markets Core Equity 2 ETF 0.39%
  • FIDELITY SMALL CAP VALUE FUND FIDELITY SMALL CAP VALUE FUND 0.97%
  • FIDELITY LARGE CAP VALUE INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
  • GOLD PORTFOLIO GOLD PORTFOLIO 0.68%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.32%

The Total Expense Ratio (TER) of 0.32% is relatively low, enhancing the portfolio's attractiveness by minimizing the drag on returns due to costs. This efficiency is particularly noteworthy given the broad diversification and active management components within the portfolio. Keeping costs low is crucial for maximizing long-term returns, and this portfolio manages to do so effectively.

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.

Considering the Efficient Frontier, this portfolio appears well-positioned for optimizing the risk-return balance based on its current asset allocation. However, continuous monitoring and adjustment are essential to maintain this balance, especially in response to changing market conditions. Rebalancing to ensure alignment with the investor's risk tolerance and investment goals remains a key consideration.

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