A balanced and highly diversified portfolio with a strong foundation in index funds and real estate

Report created on Aug 19, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is characterized by a significant allocation to two major Vanguard index funds, focusing on U.S. equities (52.06%) and international stocks (21.40%), supplemented by a solid foundation in bonds (19.34%) and a strategic investment in real estate through Realty Income Corporation (7.20%). This composition underscores a balanced approach, leveraging the broad market exposure of index funds while the bond allocation and real estate investment add layers of income and diversification.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 11.25%, with a maximum drawdown of -30.38%. The performance highlights a robust growth trajectory, albeit with significant volatility, as indicated by the drawdown. The days contributing to 90% of returns being concentrated in just 34 days illustrates the market's sporadic nature and the importance of long-term holding to capture key growth periods.

Projection Info

Monte Carlo simulations, using historical data to forecast future outcomes, suggest a wide range of potential portfolio values. With a median (50th percentile) increase of 205.6% and 954 out of 1,000 simulations showing positive returns, the projections indicate a high likelihood of future growth. However, the significant spread between the 5th and 67th percentiles (4.7% to 311.9%) underscores the inherent uncertainty in market-based investments.

Asset classes Info

  • Stocks
    80%
  • Bonds
    19%
  • Cash
    1%

The portfolio's asset class distribution, with 80% in stocks and 19% in bonds, aligns with a balanced investment strategy aimed at growth with a cushion against market volatility. The minimal cash holding (1%) suggests an aggressive investment stance, fully capitalizing on market opportunities rather than holding reserves for potential downturns.

Sectors Info

  • Technology
    20%
  • Financials
    12%
  • Real Estate
    9%
  • Consumer Discretionary
    8%
  • Industrials
    8%
  • Health Care
    7%
  • Telecommunications
    6%
  • Consumer Staples
    4%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%

Sector allocations reveal a well-rounded exposure, with technology (20%) and financial services (12%) leading, followed by real estate (9%) and consumer cyclical (8%). This sector diversity supports resilience against sector-specific downturns, though the heavy tech weighting may introduce volatility, reflecting broader market trends.

Regions Info

  • North America
    61%
  • No data
    19%
  • Europe Developed
    9%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographic distribution shows a strong bias towards North America (61%), with significant exposure to international markets (39%), including developed Europe and emerging Asia. This global diversification enhances the portfolio's growth potential while mitigating risks associated with regional economic downturns.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    32%
  • Mid-cap
    13%
  • Small-cap
    1%

The market capitalization breakdown, favoring mega (34%) and big (32%) cap stocks, positions the portfolio for stability and growth. The limited exposure to medium, small, and micro caps suggests a cautious approach to risk, prioritizing established companies with proven track records.

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 portfolio's current allocation suggests an efficient balance between risk and return, as per the Efficient Frontier concept. This indicates that the portfolio is well-optimized for achieving the best possible risk-return ratio with its current assets. However, continuous monitoring and adjustment are essential to maintain this optimization over time.

Dividends Info

  • Realty Income Corporation 5.50%
  • Vanguard Total Bond Market Index Fund Admiral Shares 3.20%
  • VANGUARD 500 INDEX FUND ADMIRAL SHARES 0.90%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 2.00%
  • Weighted yield (per year) 1.91%

The dividend yields from the portfolio's components, particularly Realty Income Corporation (5.50%) and the bond fund (3.20%), contribute to the portfolio's income stream. While the overall yield (1.91%) adds a modest income layer, the primary focus remains on capital appreciation.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund Admiral Shares 0.04%
  • VANGUARD 500 INDEX FUND ADMIRAL SHARES 0.04%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 0.09%
  • Weighted costs total (per year) 0.05%

With an overall low Total Expense Ratio (TER) of 0.05%, the portfolio stands out for its cost efficiency, maximizing investor returns by minimizing expense drag. This is particularly advantageous over the long term, where even small differences in costs can significantly impact net returns.

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