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Two ETF Tango: A Masterclass in Overlapping Investments and Missed Opportunities

Report created on Aug 3, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

Let's start with the glaringly obvious: this portfolio is like a two-legged race where both participants are tied at the ankle and trying to run in the same direction. With 60% in a global stock ETF and 40% in an S&P 500 ETF, it's like betting on the world but then doubling down on the U.S. It's a bit like wearing a belt and suspenders – overly cautious and somewhat redundant.

Growth Info

Historically, this portfolio has strutted along with a CAGR of 12.47%, which isn't bad until you realize it's like celebrating a home run when you were supposed to be playing soccer. The max drawdown of -34.10% is a sharp reminder that stocks can be a wild ride. The fact that 90% of returns came from 27 days is like winning the lottery but forgetting where you put the ticket.

Projection Info

Monte Carlo simulations, a fancy way of saying "educated guessing," suggest a wide range of outcomes, from a low 5th percentile at 71.4% to a high 67th percentile at 577.1%. While it's comforting to see 989 out of 1,000 simulations ending up positive, it's akin to being told you're likely to survive a jump off a cliff because you're wearing a parachute - still risky.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

With 99% in stocks and a lonely 1% in cash, this portfolio is like a diet consisting entirely of steak – rich and heavy, with little room for greens (bonds or alternatives). It's a high-octane approach that might leave you feeling a bit queasy when the market takes a dive.

Sectors Info

  • Technology
    28%
  • Financials
    16%
  • Consumer Discretionary
    11%
  • Industrials
    10%
  • Health Care
    9%
  • Telecommunications
    9%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

The sector allocation is like attending a party and only talking to people who work in tech or financial services. Yes, they're interesting, but there's a whole room full of people! With such heavy tilts towards Technology and Financial Services, it's a portfolio that's missing out on the diversification dance.

Regions Info

  • North America
    79%
  • Europe Developed
    9%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, this portfolio screams "America first!" with a whopping 79% in North America. It's like going on a world tour but spending most of your time in the hotel bar in New York. Diversification across regions seems more like an afterthought than a strategy.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    33%
  • Mid-cap
    18%
  • Small-cap
    4%

The market cap allocation is like believing only in giants and ignoring the little guys. With 44% in mega-caps and 33% in big caps, it's a portfolio betting heavily on the titans of industry, potentially missing out on the growth stories among smaller companies.

Redundant positions Info

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

The high correlation between the two ETFs is like buying two different brands of vanilla ice cream and expecting a flavor explosion. This redundancy doesn't add value but rather emphasizes the need for a more thoughtful approach to diversification.

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.

Click on the colored dots to explore allocations.

This portfolio is on the Efficient Frontier like a drunk trying to walk a straight line – technically on it, but barely. The heavy overlap and lack of true diversification mean it's not optimizing the risk-return trade-off as much as it could be.

Dividends Info

  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total World Stock Index Fund ETF Shares 1.80%
  • Weighted yield (per year) 1.56%

The dividend yield of 1.56% is like finding a dollar on the sidewalk – nice to have, but it's not going to change your life. While it provides a modest income stream, it's hardly the centerpiece of this growth-oriented strategy.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.05%

On a brighter note, the total TER of 0.05% is impressively low, like finding a luxury car with the fuel efficiency of a scooter. It's one of the few areas where this portfolio genuinely shines, minimizing costs while maximizing exposure.

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