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

Report created on Aug 4, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

Your portfolio is heavily weighted towards equities, split evenly between the Vanguard Total Stock Market Index Fund ETF Shares, the Vanguard S&P 500 ETF, and the Vanguard Total International Stock Index Fund ETF Shares. This structure suggests a balanced approach, leaning towards growth with a significant emphasis on diversification across both US and international markets. The allocation mirrors a classic balanced investor profile, aiming for long-term growth while managing volatility through broad market exposure.

Growth Info

Historically, your portfolio has shown a Compound Annual Growth Rate (CAGR) of 12.51%, with a maximum drawdown of -34.43%. These figures indicate a resilient performance, particularly given the drawdown, which reflects the portfolio's ability to recover from market downturns. The days contributing to 90% of returns highlight the impact of significant market movements on portfolio performance, underscoring the importance of staying invested during volatile periods for long-term growth.

Projection Info

Monte Carlo simulations, using 1,000 iterations, project a wide range of potential outcomes for your portfolio. With a median projected increase of 378.0% and 983 out of 1,000 simulations showing positive returns, the forward-looking analysis suggests a strong likelihood of continued growth. However, it's crucial to remember that such simulations are based on historical data and cannot predict future market conditions with certainty.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

Your portfolio's asset allocation is nearly entirely in stocks (99%), with a minimal cash holding (1%). This high equity exposure is typical for investors seeking growth and suggests a comfort with short-term market fluctuations in exchange for potential long-term gains. While this approach aligns with a balanced to growth-oriented investor, the minimal cash reserve offers limited liquidity and buffer against market volatility.

Sectors Info

  • Technology
    27%
  • Financials
    16%
  • Consumer Discretionary
    11%
  • Industrials
    11%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    3%
  • Utilities
    3%

The sectoral distribution within your portfolio shows a heavy tilt towards technology, financial services, and consumer cyclicals, which are sectors often associated with higher growth potential but also higher volatility. This concentration aligns with your portfolio's growth objectives, though it may introduce sector-specific risks that could affect performance during economic downturns or sector rotations.

Regions Info

  • North America
    77%
  • Europe Developed
    10%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, your portfolio is predominantly allocated to North America (77%), with smaller exposures to developed Europe, emerging Asia, and Japan. This geographic spread enhances diversification, reducing the risk of significant impact from regional economic downturns. However, the underrepresentation of emerging markets and overexposure to the US could limit potential gains from faster-growing economies.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    32%
  • Mid-cap
    18%
  • Small-cap
    4%
  • Micro-cap
    1%

The market capitalization breakdown indicates a preference for mega and big-cap stocks, which are generally considered less volatile than smaller companies. This preference supports a balanced risk approach, aiming for steady growth with moderate volatility. However, the limited exposure to small and micro-cap stocks could mean missing out on higher growth opportunities these segments sometimes offer.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation between the Vanguard S&P 500 ETF and the Vanguard Total Stock Market Index Fund ETF Shares suggests redundancy in your portfolio, as these funds have significant overlap in their holdings. This redundancy limits the diversification benefits and exposes your portfolio to concentrated market risk, particularly in the US equity 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.

Optimizing your portfolio along the Efficient Frontier could involve reducing the overlap between the Vanguard S&P 500 ETF and the Vanguard Total Stock Market Index Fund ETF Shares. This adjustment would aim to maintain your growth objectives while improving diversification and potentially enhancing the risk-return profile. Remember, optimization seeks to achieve the best possible balance between risk and return, specific to your investment goals and risk tolerance.

Dividends Info

  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.62%

The overall dividend yield of your portfolio stands at 1.62%, with the international fund contributing a higher yield. This yield contributes to the portfolio's total return, providing a steady income stream in addition to potential capital appreciation. For a balanced portfolio, dividends can offer a buffer during market downturns, enhancing total return over the long term.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • 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) 0.04%

The portfolio's total expense ratio (TER) is impressively low at 0.04%, which is beneficial for long-term growth as it minimizes the drag on performance caused by fees. Low costs are crucial for maximizing net returns, especially in a low-yield environment, making your portfolio's cost efficiency a significant strength.

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