Broad low cost stock and bond mix with strong diversification and mild focus on stability
Report created on Jun 29, 2026Risk profile
4/7
Diversification profile
4/5
Positions
-
IT iShares Core S&P Total U.S. Stock Market ETF
ITOT - US4642871507 50.00% -
ID iShares Core MSCI International Developed Market
IDEV - US46435G3267 20.00% -
VT Vanguard Tax-Exempt Bond Index Fund ETF Shares
VTEB - US9229077469 20.00% -
VG Vanguard Intermediate-Term Treasury Index Fund ETF Shares
VGIT - US92206C7065 10.00%
This portfolio is a straightforward blend of broad stock and bond index ETFs. Around 70% is in stocks split between total U.S. equities and developed international markets, while 30% is in bonds split between tax‑exempt and Treasury funds. This structure matches a classic “balanced” approach where growth assets dominate but safety assets still play a clear role. Using total‑market equity funds means thousands of companies are represented indirectly, even if only the largest names show up in the look‑through list. Overall, this composition provides a simple, transparent way to capture global equity growth while using high‑quality bonds to moderate the ride. It also lines up nicely with the portfolio’s stated balanced risk profile.
Growth
From early 2017 to mid‑2026, a hypothetical $1,000 in this mix grew to about $2,560, a compound annual growth rate (CAGR) of 10.8%. CAGR is like average speed on a road trip: it smooths out all the bumps into one yearly number. This trailed both the U.S. market (15.08%) and global market (12.42%), which is typical for a portfolio that holds a meaningful bond slice and some non‑U.S. stocks. The worst drop was about -27.2% during early 2020, shallower than the roughly -34% drawdowns in the benchmarks, showing the bonds did soften the blow. Only 31 days generated 90% of returns, highlighting how missing just a handful of strong days could matter a lot.
Projection
The Monte Carlo projection uses past return and volatility patterns to simulate 1,000 different 15‑year futures for a $1,000 investment. Think of it as rolling the dice many times based on historical behavior to see a range of possible outcomes, not a single forecast. The median result is about $2,473, with a central band from roughly $1,825 to $3,335. The wider $1,199 to $5,490 range captures more extreme but still plausible paths. An average simulated annual return of 6.79% is lower than the backward‑looking CAGR, reflecting a more cautious view. This approach helps illustrate uncertainty, but it still relies on history, which may not repeat in the same way.
Asset classes
- Stocks 70%
- Bonds 30%
Asset‑class‑wise, the portfolio is 70% stocks and 30% bonds, a classic balanced split. Stocks are the growth engine, driving most long‑term return, while bonds usually act as ballast during equity sell‑offs. Compared with a pure equity benchmark, this bond allocation naturally lowers both expected return and volatility. Within bonds, there is a mix of Treasuries and tax‑exempt bonds, both generally viewed as higher‑quality segments rather than aggressive credit risk. This makes the defensive side more about stability than chasing extra yield. The result is an overall risk profile that fits well with the reported 4/7 risk score: growth‑oriented but with a meaningful cushion.
Sectors
- Technology 21%
- Financials 10%
- Industrials 8%
- Consumer Discretionary 6%
- Health Care 6%
- Telecommunications 6%
- Consumer Staples 3%
- Energy 3%
- Basic Materials 3%
- Utilities 2%
- Real Estate 2%
This breakdown covers the equity portion of your portfolio only.
Sector exposure is spread across the economy, with technology at 21% as the largest slice, followed by financials, industrials, consumer‑related areas, health care, communications, and smaller allocations to staples, energy, materials, utilities, and real estate. This mix is broadly similar to global equity benchmarks that are currently tech‑tilted, so it neither heavily doubles down on one niche nor avoids major sectors. A notable implication is that tech and communication names, while diversified within themselves, still add some sensitivity to interest rates and innovation cycles. At the same time, exposure to defensives like utilities, staples, and health care gives some balance, helping smooth sector‑specific shocks rather than relying on a single theme.
Regions
- North America 52%
- Europe Developed 11%
- Japan 4%
- Australasia 1%
- Asia Developed 1%
This breakdown covers the equity portion of your portfolio only.
Geographically, roughly 52% of equity exposure is in North America, with the rest mainly in developed markets like Europe, Japan, and other developed Asia and Australasia. This U.S. tilt is very much in line with the fact that U.S. stocks make up a large share of global market value, so the allocation sits close to a world‑market structure rather than being heavily home‑biased or underweight abroad. International exposure introduces currency differences and varied economic cycles, which can diversify the path of returns over time. This spread helps avoid tying everything to a single economy or policy regime, while still recognizing the central role of North American markets in global equities.
Market capitalization
- Mega-cap 29%
- Large-cap 22%
- Mid-cap 13%
- Small-cap 4%
- Micro-cap 1%
This breakdown covers the equity portion of your portfolio only.
By market capitalization, the portfolio leans toward larger companies: significant exposure to mega‑ and large‑caps, with smaller slices in mid‑, small‑, and micro‑caps. This reflects the use of broad, cap‑weighted index funds where bigger companies naturally occupy more space. Larger firms tend to be more established, with deeper resources and more diversified revenue streams, which often leads to somewhat steadier behavior than very small, speculative names. The smaller‑cap allocations still add a growth and innovation element, offering different return drivers than the mega‑caps. Overall, this pattern mirrors mainstream indices and supports diversification across company sizes without swinging hard into higher‑volatility small‑cap territory.
True holdings
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NV NVIDIA Corporation 3.46%
Part of fund(s):- iShares Core S&P Total U.S. Stock Market ETF
-
AA Apple Inc 3.02%
Part of fund(s):- iShares Core S&P Total U.S. Stock Market ETF
-
MS Microsoft Corporation 2.02%
Part of fund(s):- iShares Core S&P Total U.S. Stock Market ETF
-
AM Amazon.com Inc 1.64%
Part of fund(s):- iShares Core S&P Total U.S. Stock Market ETF
-
GO Alphabet Inc Class A 1.46%
Part of fund(s):- iShares Core S&P Total U.S. Stock Market ETF
-
AV Broadcom Inc 1.27%
Part of fund(s):- iShares Core S&P Total U.S. Stock Market ETF
-
GO Alphabet Inc Class C 1.17%
Part of fund(s):- iShares Core S&P Total U.S. Stock Market ETF
-
ME Meta Platforms Inc. 0.87%
Part of fund(s):- iShares Core S&P Total U.S. Stock Market ETF
-
TS Tesla Inc 0.78%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- iShares Core S&P Total U.S. Stock Market ETF
-
MU Micron Technology Inc 0.78%
Part of fund(s):- iShares Core S&P Total U.S. Stock Market ETF
- Top 10 total 16.47%
This breakdown covers the equity portion of your portfolio only.
The look‑through view shows that many of the biggest underlying positions are familiar mega‑cap technology and growth names such as NVIDIA, Apple, Microsoft, Amazon, and Alphabet. These appear via multiple ETFs, so the true overlap is probably higher than what the top‑10 data alone captures. Hidden concentration happens when the same company shows up repeatedly across funds, amplifying its impact on portfolio ups and downs more than a cursory glance suggests. While these firms are large, global businesses, their prominence means performance is somewhat tied to how this group behaves. At the same time, remember that this list only covers about 18% of total holdings, so there is still a long tail of smaller positions providing breadth.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
Factor exposures are mostly neutral, meaning the portfolio behaves a lot like the broad market along value, size, momentum, quality, and yield dimensions. Factor exposure is basically how much the portfolio leans into certain characteristics that research links to returns, like cheapness (value) or trendiness (momentum). The one notable tilt is toward low volatility at 63%, a mild lean toward more stable stocks. That can help during market turbulence, as low‑volatility names often fall less, though they may lag during very strong, speculative rallies. Overall, this factor profile is well‑balanced and aligns with the idea of a broad market core with a subtle stability bias rather than a strong style bet.
Risk contribution
-
iShares Core S&P Total U.S. Stock Market ETF
Weight: 50.00% 72.1% -
iShares Core MSCI International Developed Market
Weight: 20.00% 25.0% -
Vanguard Tax-Exempt Bond Index Fund ETF Shares
Weight: 20.00% 3.0% -
Vanguard Intermediate-Term Treasury Index Fund ETF Shares
Weight: 10.00% 0.0%
Risk contribution shows how much each holding drives overall portfolio volatility, which can differ a lot from simple weight. Here, the U.S. total‑market ETF is 50% of the assets but contributes about 72% of total risk, meaning it dominates the portfolio’s day‑to‑day swings. The international equity ETF is 20% of assets and about 25% of risk, while both bond funds together contribute only a tiny slice despite 30% weight. This pattern reflects that stocks, especially U.S. equities, are much more volatile than high‑quality bonds. It also means that when U.S. markets move sharply, the entire portfolio feels it, even though the bond sleeve is there to cushion the impact rather than share equal 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 risk vs. return chart plots your portfolio against an “efficient frontier,” which shows the best possible trade‑off between risk (volatility) and return using these same holdings in different mixes. The current portfolio has a Sharpe ratio of 0.5 and sits on or very near the frontier, meaning its risk/return balance is considered efficient for its risk level. The optimal Sharpe portfolio would take more risk and aim for higher return, while the minimum‑variance portfolio would dial risk way down with lower expected return. The key insight is that, given these specific ETFs, the existing allocation is already using them in a smart way from a modern portfolio theory perspective, without obvious inefficiencies.
Dividends
- iShares Core MSCI International Developed Market 3.30%
- iShares Core S&P Total U.S. Stock Market ETF 1.00%
- Vanguard Intermediate-Term Treasury Index Fund ETF Shares 3.80%
- Vanguard Tax-Exempt Bond Index Fund ETF Shares 3.30%
- Weighted yield (per year) 2.20%
The overall dividend yield is about 2.2%, coming from a mix of equity dividends and bond interest. The international equity ETF and the tax‑exempt bond fund both yield around 3.3%, while the U.S. stock ETF yields about 1% and the Treasury fund around 3.8%. Dividends and bond coupons can be thought of as a steady paycheck that adds to returns alongside price changes. For a growth‑plus‑income mix like this, the yield is moderate: not ultra‑high, but enough to provide a meaningful contribution over time. It also helps that the income sources are diversified across regions and asset classes rather than relying on a single high‑yield corner of the market.
Ongoing product costs
- iShares Core MSCI International Developed Market 0.04%
- iShares Core S&P Total U.S. Stock Market ETF 0.03%
- Vanguard Intermediate-Term Treasury Index Fund ETF Shares 0.04%
- Vanguard Tax-Exempt Bond Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.04%
Costs are impressively low, with individual fund expense ratios between 0.03% and 0.05% and a total blended cost of about 0.04% per year. The expense ratio is like a small annual service fee charged by the fund manager, quietly deducted from returns. Keeping this number low matters because even tiny differences compound over long periods. Here, the costs sit at the very low end of what is available for diversified index funds, which supports better long‑term performance compared to higher‑fee options tracking similar markets. This aligns strongly with best practices in portfolio design: broad diversification paired with minimal ongoing drag from fees.
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