Balanced portfolio with a strong focus on US equities and diversified international exposure

Report created on Aug 21, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is primarily composed of three ETFs: Vanguard S&P 500 ETF, Schwab U.S. Dividend Equity ETF, and Vanguard Total International Stock Index Fund ETF Shares, with an allocation of 40%, 30%, and 30% respectively. This structure demonstrates a strong focus on US equities while maintaining significant international exposure. The blend of growth (S&P 500) and income (Dividend Equity) strategies within the US and broad international diversification suggests a balanced approach to risk and return.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.03%, with a maximum drawdown of -33.65%. The days contributing to 90% of returns number 31, indicating that a few key days have driven most of the portfolio's performance. This highlights the importance of staying invested over the long term, as missing these key days could significantly impact overall returns.

Projection Info

Monte Carlo simulations, which model a wide range of potential future outcomes based on historical data, suggest a median projected growth of 431.8% over an unspecified period. While these projections offer valuable insights, it's critical to remember that they are based on past performance, which is not a reliable indicator of future results. The high percentage of simulations with positive returns (994 out of 1,000) underscores the portfolio's potential for growth but should be viewed with cautious optimism.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely invested in stocks (99%), with a minimal cash holding (1%). This allocation aligns with a growth-oriented strategy but comes with higher volatility. Given the negligible presence of other asset classes, there's room to enhance portfolio stability through diversification into bonds or alternative investments, which can offer counterbalance during market downturns.

Sectors Info

  • Technology
    20%
  • Financials
    15%
  • Health Care
    11%
  • Industrials
    11%
  • Consumer Discretionary
    10%
  • Consumer Staples
    10%
  • Energy
    8%
  • Telecommunications
    7%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

The sectoral distribution is well-balanced across technology, financial services, healthcare, industrials, and consumer sectors, among others. This diversification helps mitigate sector-specific risks. However, the 20% allocation to technology suggests a higher exposure to the volatility associated with this sector. Balancing this with investments in more stable sectors could reduce overall portfolio risk.

Regions Info

  • North America
    72%
  • Europe Developed
    12%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic allocation is heavily weighted towards North America (72%), with meaningful exposure to developed Europe (12%) and emerging markets in Asia (5%). This distribution supports global diversification but leans heavily on the US market. Expanding into underrepresented regions could offer additional growth opportunities and reduce geographic concentration risk.

Market capitalization Info

  • Large-cap
    40%
  • Mega-cap
    32%
  • Mid-cap
    23%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio's market capitalization exposure leans towards larger companies (Big 40%, Mega 32%), which tend to be more stable but may offer lower growth potential compared to smaller companies. The medium (23%), small (3%), and micro (1%) allocations suggest some exposure to higher-growth potential but with increased volatility. A slight adjustment towards smaller caps could enhance growth prospects, albeit with higher risk.

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.

The current asset allocation suggests a well-thought-out strategy aiming for an optimal risk-return ratio, as indicated by the Efficient Frontier analysis. While the portfolio is already performing well, there's always room for improvement. Regularly reviewing and adjusting the asset allocation to maintain this balance as market conditions change can help in achieving long-term investment goals.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.70%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 2.40%

The portfolio's dividend yield stands at 2.40%, with the Schwab U.S. Dividend Equity ETF contributing a significant 3.70%. Dividends provide a steady income stream and can contribute to total return, particularly in volatile or declining markets. Given the current yield, the portfolio appears well-positioned to benefit from dividends as a component of return, balancing growth with income.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

With an average Total Expense Ratio (TER) of 0.04%, the portfolio benefits from low management costs, which can significantly enhance long-term returns. Low-cost ETFs are an efficient way to gain exposure to a broad range of assets, and maintaining this focus on cost efficiency is commendable.

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