Balanced and diversified portfolio with a strong focus on stocks and global exposure

Report created on Jul 18, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards ETFs, with a significant emphasis on the Vanguard Total Stock Market Index Fund ETF Shares and the Vanguard Total International Stock Index Fund ETF Shares, making up nearly 90% of the portfolio. The inclusion of the American Century ETF Trust adds a layer of diversification, albeit to a lesser extent. The allocation reflects a balanced approach, aiming to capture the growth potential of the global stock market while attempting to mitigate risk through diversification across different regions and sectors.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 18.02% and a maximum drawdown of -16.89%, the portfolio demonstrates robust historical performance. The days contributing to 90% of returns being limited to 13.0 indicates that the portfolio's gains are concentrated in a relatively small number of highly profitable days. This performance, while impressive, should be viewed with the understanding that past success is not a guaranteed predictor of future results.

Projection Info

Utilizing Monte Carlo simulations, which project future outcomes based on historical data, the portfolio shows a wide range of potential returns, with the 50th percentile at a 900% increase. While these projections provide a helpful guide, it's important to remember that they are based on past market behavior, which may not accurately predict future market movements. The guaranteed positive returns in all simulations highlight the optimistic assumptions inherent in this method.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's almost exclusive focus on stocks (99%) with a minimal cash holding (1%) reflects a growth-oriented strategy. This concentration in equities is suitable for investors with a higher risk tolerance but may not be ideal for those seeking income or with a shorter investment horizon. Diversifying across more asset classes could provide a buffer against stock market volatility.

Sectors Info

  • Technology
    23%
  • Financials
    18%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    4%
  • Real Estate
    3%
  • Utilities
    2%

The sectoral allocation shows a heavy tilt towards Technology and Financial Services, which are known for their growth potential but also for their volatility. The presence of Industrials, Consumer Cyclicals, and Healthcare adds balance, yet the concentration in high-growth sectors may expose the portfolio to sector-specific risks. A more even distribution across sectors could help mitigate these risks.

Regions Info

  • North America
    67%
  • Europe Developed
    14%
  • Japan
    6%
  • Asia Emerging
    6%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is predominantly invested in North America (67%) with significant exposure to developed Europe and Japan, reflecting a focus on developed markets. The modest allocation to emerging markets in Asia and Latin America offers growth potential but also adds geopolitical and currency risks. Increasing exposure to these regions could enhance diversification and capture emerging market growth.

Market capitalization Info

  • Mega-cap
    40%
  • Large-cap
    30%
  • Mid-cap
    20%
  • Small-cap
    7%
  • Micro-cap
    2%

The portfolio's allocation across market capitalizations, with a focus on mega (40%) and big (30%) cap stocks, suggests a preference for established, large companies. While this can offer stability, the relatively smaller allocation to small and micro-cap stocks limits exposure to potentially higher growth (albeit riskier) segments of the market.

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 asset allocation suggests it is positioned near the Efficient Frontier, indicating an optimized risk-return ratio based on historical data. However, it's important to remember that this optimization is dynamic. Regularly reviewing and adjusting the allocation in response to changing market conditions and personal financial goals can help maintain this optimization.

Dividends Info

  • American Century ETF Trust 2.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.80%

The dividend yields, ranging from 1.20% to 2.80%, contribute to the portfolio's total yield of 1.80%. This income can provide a steady cash flow, which is beneficial during market downturns or for investors seeking income. However, the focus on growth-oriented ETFs means the portfolio's overall yield may be lower than those with a higher allocation to income-generating assets.

Ongoing product costs Info

  • American Century ETF Trust 0.26%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.06%

With a Total Expense Ratio (TER) of 0.06%, the portfolio benefits from low costs, which can significantly impact long-term returns. The low fees associated with these ETFs are a positive aspect, ensuring more of the investment's return is retained by the investor. Continuously monitoring and minimizing investment costs remains a prudent strategy.

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