A balanced and moderately diversified portfolio with a strong foundation in ETFs

Report created on Aug 2, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio primarily consists of a significant allocation to the Vanguard Total Stock Market Index Fund ETF Shares at 70%, complemented by the Vanguard Total Bond Market Index Fund ETF Shares at 16%, the Vanguard FTSE Developed Markets Index Fund ETF Shares at 10%, and a minor 4% in the Vanguard Money Market Reserves. The heavy tilt towards stock ETFs, particularly in the total stock market, indicates a growth-oriented approach, while the bond and money market allocations provide a cushion against market volatility.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 10.93% and a maximum drawdown of -29.93%, the portfolio has demonstrated resilience and robust growth potential over time. The days contributing to 90% of returns being limited to 29 suggests significant returns were concentrated in short periods, highlighting the importance of staying invested through market cycles for capturing peak growth moments.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, suggest a wide range of outcomes with a median increase of 127.2% in portfolio value. However, it's crucial to remember that while these simulations can provide insight, they are not predictive. Market conditions, economic factors, and other unforeseen events can significantly impact actual returns.

Asset classes Info

  • Stocks
    79%
  • Bonds
    16%
  • Cash
    1%

The allocation across asset classes with 79% in stocks, 16% in bonds, and a small portion in cash reflects a balanced approach to growth and risk management. This mix supports the portfolio's aim to achieve long-term growth while mitigating short-term market fluctuations through fixed-income securities.

Sectors Info

  • Technology
    23%
  • Financials
    12%
  • Consumer Discretionary
    8%
  • Industrials
    8%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Real Estate
    2%
  • Basic Materials
    2%
  • Utilities
    2%

The sectoral allocation shows a diversified spread across technology, financial services, consumer cyclicals, industrials, and healthcare, among others. The technology sector's dominant 23% allocation aligns with its significant role in driving market performance, though it may also introduce higher volatility.

Regions Info

  • North America
    71%
  • Europe Developed
    6%
  • Japan
    2%
  • Asia Developed
    1%
  • Australasia
    1%

Geographic exposure is heavily weighted towards North America at 71%, with modest allocations in developed Europe and Japan. This concentration in developed markets, particularly in the U.S., leverages the stability and growth potential of these economies but may limit exposure to emerging market opportunities.

Market capitalization Info

  • Mega-cap
    33%
  • Large-cap
    25%
  • Mid-cap
    15%
  • Small-cap
    5%
  • Micro-cap
    2%

The portfolio's market capitalization exposure, with a focus on mega and big cap stocks, underscores a preference for established, large-scale companies known for their stability and potential for steady growth. However, the relatively smaller allocation to small and micro-caps suggests an opportunity to enhance returns through increased 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.

The Efficient Frontier analysis suggests that the current asset allocation is close to optimal for the given risk-return profile. However, continuous monitoring and slight adjustments may further enhance the portfolio's efficiency, ensuring the best possible risk-return trade-off.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.50%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.70%
  • Vanguard Money Market Reserves - Vanguard Cash Reserves Federal Money Market Fund 3.80%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 1.82%

The dividend yields, ranging from 1.20% for the stock ETF to 3.80% for the money market fund, contribute to the portfolio's total yield of 1.82%. These dividends provide a steady income stream, which can be particularly valuable during market downturns or for investors seeking regular income.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.03%

With exceptionally low costs, highlighted by a Total Expense Ratio (TER) of 0.03% across the ETFs, the portfolio is positioned to maximize returns by minimizing the drag on performance due to fees. This cost efficiency is a significant advantage in building long-term wealth.

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