Balanced portfolio with a strong international focus and high diversification across sectors
Report created on Sep 10, 2025Risk profile
4/7
Diversification profile
5/5
Positions
-
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 65.00% -
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 20.00% -
QQ Invesco QQQ Trust
QQQ - US46090E1038 15.00%
The portfolio is structured with a significant emphasis on international stocks, represented by a 65% allocation to the Vanguard Total International Stock Index Fund ETF Shares. This is complemented by a 20% allocation to the Vanguard Total Stock Market Index Fund ETF Shares, focusing on the US market, and a 15% allocation to the Invesco QQQ Trust, which targets technology-heavy large-cap stocks. This composition showcases a strategic tilt towards global diversification, with a balanced mix of domestic and international exposure.
Growth
Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 11.99%, with a maximum drawdown of -32.70%. The days contributing to 90% of the returns amount to 29, indicating that while returns are strong, they may come from a few significant positive movements. Comparing this to benchmark indices could provide insight into performance relative to broader markets, suggesting the portfolio's risk and return characteristics are aligned with a balanced profile.
Projection
Monte Carlo simulations, running 1,000 scenarios, project a wide range of potential outcomes, with a median (50th percentile) increase of 589.4%. The 5th percentile at 92.5% suggests a floor for potential losses in adverse scenarios, while the 67th percentile shows a more optimistic outcome. These projections, while informative, are based on historical data and assumptions, which cannot guarantee future results but offer a structured way to consider potential variability in portfolio performance.
Asset classes
- Stocks 98%
- Cash 2%
The allocation across asset classes is heavily skewed towards stocks (98%), with a minimal cash reserve (2%). This high equity exposure is typical for growth-oriented strategies, aiming for higher returns at the cost of greater volatility. The absence of bonds or alternative investments limits the portfolio's ability to hedge against stock market downturns, which could be a consideration for enhancing risk management.
Sectors
- Technology 23%
- Financials 18%
- Industrials 13%
- Consumer Discretionary 11%
- Telecommunications 8%
- Health Care 8%
- Consumer Staples 6%
- Basic Materials 5%
- Energy 4%
- Utilities 3%
- Real Estate 2%
Sector allocation shows a heavy emphasis on Technology (23%), Financial Services (18%), and Industrials (13%), with lesser allocations across other sectors. This sector spread indicates a growth-oriented approach, given the high allocation to sectors that typically exhibit above-average growth rates. However, the concentration in Technology could introduce sector-specific risks, such as higher volatility in response to market shifts or regulatory changes.
Regions
- North America 40%
- Europe Developed 25%
- Asia Emerging 10%
- Japan 10%
- Asia Developed 7%
- Australasia 3%
- Africa/Middle East 2%
- Latin America 1%
- Europe Emerging 1%
Geographic allocation underscores a strong international presence, with 40% in North America and significant exposures to Europe Developed (25%) and emerging markets in Asia (10%). This geographic spread enhances diversification, potentially reducing the impact of regional economic downturns on the portfolio. However, the high international exposure also introduces currency risk and geopolitical risk, which should be monitored.
Market capitalization
- Mega-cap 46%
- Large-cap 31%
- Mid-cap 16%
- Small-cap 4%
- Micro-cap 1%
The market capitalization breakdown shows a preference for Mega (46%) and Big (31%) cap stocks, suggesting a conservative approach within the equity allocation by favoring established, large-scale businesses. While this may reduce volatility compared to smaller cap investments, it could also limit potential high-growth opportunities found in smaller, more agile companies.
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 appears well-structured for a balanced risk-return profile, as indicated by its risk score and diversification classification. Utilizing the Efficient Frontier concept could identify if reallocating assets might yield a more optimal risk-return balance. However, it's crucial to recognize that such optimizations are based on historical data, which may not perfectly predict future market behaviors.
Dividends
- Invesco QQQ Trust 0.50%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.70%
- Weighted yield (per year) 2.07%
The dividend yield across the portfolio averages to 2.07%, with the highest yield from the Vanguard Total International Stock Index Fund ETF Shares at 2.70%. This yield contributes to the portfolio's total return, providing a steady income stream in addition to potential capital gains. For investors seeking both growth and income, this balanced approach to dividends can be appealing.
Ongoing product costs
- Invesco QQQ Trust 0.20%
- 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) 0.07%
The Total Expense Ratio (TER) of 0.07% is impressively low, enhancing long-term return potential by minimizing the drag on performance caused by fees. This cost efficiency is a significant advantage, particularly in a diversified portfolio where the compounding effect of high fees can erode returns over time.
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