Broad low cost global stock and bond mix with efficient risk balance and growth tilt
Report created on Mar 23, 2026Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
What type of investor this portfolio is suitable for
Balanced Investors
An investor well matched to this kind of portfolio is willing to accept moderate ups and downs in pursuit of solid long‑term growth, but doesn’t want the full rollercoaster of an all‑stock allocation. Goals might include retirement, long‑term wealth building, or funding major future expenses a decade or more away. They’re comfortable with a globally diversified approach and understand that short‑term losses of 20–30% are possible, yet they value having bonds in place to soften the blow. Patience, a multi‑year horizon, and a focus on staying invested through market cycles are key traits for someone aligned with this balanced, growth‑tilted structure.
Positions
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Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 45.00% -
Vanguard FTSE Developed Markets Index Fund ETF Shares
VEA - US9219438580 19.00% -
iShares iBoxx $ Investment Grade Corporate Bond ETF
LQD - US4642872422 17.00% -
Vanguard FTSE Emerging Markets Index Fund ETF Shares
VWO - US9220428588 16.00% -
Vanguard Dividend Appreciation Index Fund ETF Shares
VIG - US9219088443 2.00% -
Schwab U.S. TIPS ETF
SCHP - US8085248701 1.00%
This portfolio is built mainly from broad index ETFs, with about four-fifths in stocks and just under a fifth in bonds, plus a tiny slice in inflation-protected bonds. That structure is classic for a “balanced but growth-leaning” approach, using just a handful of diversified building blocks instead of many niche funds. This keeps things transparent and easier to manage. The mix naturally captures thousands of companies and a wide range of bonds. For someone wanting long-term growth while still having some cushion in downturns, this kind of simple, diversified core is a strong foundation that stays aligned with mainstream asset allocation practices.
Growth
Historically, a hypothetical $1,000 here grew to about $2,716 over roughly ten years, a compound annual growth rate (CAGR) of 11.2%. CAGR is like your average yearly speed on a road trip, smoothing out all the bumps. That’s slightly below the global market and noticeably below the U.S. market alone, which reflects the drag from bonds and non‑U.S. stocks during a strong decade for U.S. equities. The worst drop, or max drawdown, was about ‑31%, a bit milder than the benchmarks. Overall, the history shows solid returns with somewhat reduced downside – a tradeoff that fits a balanced risk profile rather than an all‑equity approach.
Projection
The Monte Carlo simulation looks at how $1,000 might grow over 10 years using many random paths built from historical behavior. Think of it as running the market’s last decade thousands of different ways to see a range of outcomes, not just one straight line. The median result roughly triples your money, with a 5th percentile outcome still positive at around 20% total growth and a strong majority of scenarios ending higher. The average simulated annual return is about 9.1%, slightly below the historical figure, which is a sensible, more conservative picture. Still, all of this relies on past patterns, which can change, so it’s more of a guide rail than a forecast.
Asset classes
- Stocks 81%
- Bonds 18%
- Cash 1%
Asset‑class wise, you’ve got roughly 81% in stocks, 18% in bonds, and about 1% in cash‑like exposure. That equity weight is higher than a “classic” 60/40 but still well below a 100% stock allocation, which puts this in a growth‑oriented but not aggressive bucket. The bonds are investment‑grade corporates plus a small slice of inflation‑linked Treasuries, providing some income and stability when stocks wobble. This allocation is well‑balanced and aligns closely with widely used glide paths for investors with longer horizons who still want some downside buffer. Over time, such a mix tends to smooth the ride without giving up too much long‑run return potential.
Sectors
- Technology 21%
- Financials 14%
- Industrials 10%
- Consumer Discretionary 8%
- Health Care 7%
- Telecommunications 6%
- Consumer Staples 4%
- Basic Materials 4%
- Energy 3%
- Utilities 2%
- Real Estate 2%
Bond positions are excluded from this sector breakdown.
Sector exposure is broad: technology is the largest piece at 21%, followed by financials, industrials, consumer cyclicals, healthcare, and communication services, with smaller allocations to defensives, materials, energy, utilities, and real estate. This spread is quite in line with global equity benchmarks, which is a strong indicator of diversification. A tech tilt can boost growth, especially in innovative periods, but can also feel more volatile when interest rates rise or when growth stocks fall out of favor. Because no single sector is overwhelmingly dominant, the portfolio is better positioned to handle shifts in economic leadership over long cycles.
Regions
- North America 49%
- Europe Developed 10%
- Asia Emerging 8%
- Asia Developed 6%
- Japan 4%
- Africa/Middle East 2%
- Latin America 1%
- Australasia 1%
Bond positions are excluded from this geography breakdown.
Geographically, around half the equity exposure is in North America, with the rest spread across developed Europe, Japan, developed Asia, and multiple emerging regions. That’s more globally diversified than a pure U.S.-only approach, though it’s still anchored in the domestic market, which matches many global benchmarks today. This helps reduce the risk of any one country or region dominating outcomes, and captures different growth drivers, currencies, and policy environments. The emerging markets slice adds long‑term potential but more volatility. Overall, the geographic exposure is nicely balanced and aligns with global standards, offering a sensible mix of home bias and worldwide reach.
Market capitalization
- Mega-cap 35%
- Large-cap 25%
- Mid-cap 15%
- Small-cap 4%
- Micro-cap 1%
Bond positions are excluded from this market cap breakdown.
By market cap, you’re leaning heavily into large companies: about 60% in mega and big caps, with smaller pieces in mid, small, and micro caps. Large caps tend to be more stable, profitable, and better researched, which can mean smoother performance and narrower swings than a small‑cap‑heavy approach. The modest small and micro allocations still give you some exposure to higher‑growth, earlier‑stage businesses without making them a main driver of risk. This balance is very close to a normal global market‑cap profile, which is a practical way to stay diversified and avoid making big, concentrated bets on any specific size segment.
True holdings
-
NVIDIA Corporation 2.78%Part of fund(s):
- Schwab U.S. Broad Market ETF
- Vanguard FTSE Developed Markets Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
Apple Inc 2.73%Part of fund(s):
- Schwab U.S. Broad Market ETF
- Vanguard Dividend Appreciation Index Fund ETF Shares
- Vanguard FTSE Developed Markets Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
Microsoft Corporation 2.05%Part of fund(s):
- Schwab U.S. Broad Market ETF
- Vanguard Dividend Appreciation Index Fund ETF Shares
- Vanguard FTSE Developed Markets Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
Taiwan Semiconductor Manufacturing Co. Ltd. 2.03%Part of fund(s):
- Vanguard FTSE Developed Markets Index Fund ETF Shares
- Vanguard FTSE Emerging Markets Index Fund ETF Shares
- iShares Asia 50 ETF
-
Amazon.com Inc 1.37%Part of fund(s):
- Schwab U.S. Broad Market ETF
- Vanguard FTSE Developed Markets Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
Alphabet Inc Class A 1.23%Part of fund(s):
- Schwab U.S. Broad Market ETF
- Vanguard FTSE Developed Markets Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
Broadcom Inc 1.15%Part of fund(s):
- Schwab U.S. Broad Market ETF
- Vanguard Dividend Appreciation Index Fund ETF Shares
- Vanguard FTSE Developed Markets Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
Alphabet Inc Class C 0.97%Part of fund(s):
- Schwab U.S. Broad Market ETF
- Vanguard FTSE Developed Markets Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
Meta Platforms Inc. 0.96%Part of fund(s):
- Schwab U.S. Broad Market ETF
- Vanguard FTSE Developed Markets Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
-
Tesla Inc 0.77%Part of fund(s):
- LS 1x Tesla Tracker ETP Securities GBP
- Schwab U.S. Broad Market ETF
- Vanguard FTSE Developed Markets Index Fund ETF Shares
- Vanguard Total Stock Market Index Fund ETF Shares
- Top 10 total 16.05%
Looking through the ETFs, the largest underlying exposures are well-known mega‑cap names like NVIDIA, Apple, Microsoft, and major global tech and consumer platforms. None of these exceed about 3% of the total portfolio once all ETF layers are combined, which keeps single‑company risk moderate. There is some overlap because the same giants show up in multiple broad indexes, but that’s expected when using market‑cap‑weighted funds. Overlap might even be slightly higher than it appears since only top‑10 ETF holdings are captured. Practically, this means you’re strongly tied to how large global leaders perform, but no single stock dominates the overall risk.
Factors
Factor exposure shows strong tilts toward value, size (meaning smaller companies relative to giants), and yield, with moderate low‑volatility exposure and weaker momentum. Factors are like investment “ingredients” – characteristics such as cheapness, quality, or trend that explain why returns differ. A value and yield tilt can support returns when cheaper, dividend‑paying companies are in favor, and can sometimes cushion downturns. Lower momentum means you may lag in fast‑moving, trend‑driven rallies. Signal coverage is mixed, so these readings aren’t perfect, but they do suggest the portfolio may behave more defensively than a pure high‑growth, momentum‑driven allocation during certain market regimes.
Risk contribution
-
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 45.00% 54.5% -
Vanguard FTSE Developed Markets Index Fund ETF Shares
Weight: 19.00% 21.1% -
Vanguard FTSE Emerging Markets Index Fund ETF Shares
Weight: 16.00% 18.1% -
iShares iBoxx $ Investment Grade Corporate Bond ETF
Weight: 17.00% 4.2% -
Vanguard Dividend Appreciation Index Fund ETF Shares
Weight: 2.00% 2.0% - Top 5 risk contribution 99.9%
Risk contribution measures how much each holding adds to the overall ups and downs, which isn’t always the same as its weight. Here, the three big equity funds together contribute almost 94% of total portfolio risk, even though they’re 80% of the assets. The broad U.S. stock ETF alone is 45% of the portfolio but over 54% of the risk, so it’s the main driver of volatility. Meanwhile, the corporate bond fund is 17% by weight but only 4% of risk, acting as a stabilizer. If someone wanted a smoother profile, slightly reducing the dominant equity positions and increasing lower‑risk holdings could better align risk with intended balance.
Redundant positions
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High correlationVanguard Dividend Appreciation Index Fund ETF SharesVanguard Total Stock Market Index Fund ETF Shares
Correlation measures how investments move together; a correlation near 1 means they often go up and down in sync. The analysis shows very high correlation between the dividend ETF and the total U.S. stock ETF, which makes sense since one is basically a subset of the other. More broadly, the equity positions are highly correlated, which limits how much diversification they can provide in a sharp global sell‑off – most stocks tend to drop together in crises. The good news is that the bond sleeve is much less correlated with stocks, giving you meaningful diversification when equities struggle and helping soften portfolio‑level drawdowns.
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.
On the risk‑return chart, your current mix is on the efficient frontier, which means that for its particular blend of holdings, it’s already using risk pretty efficiently. The Sharpe ratio of about 0.6 trails the theoretical optimal combination’s 0.79, but that optimal setup carries lower return and risk, so it’s more about preference than “better” in absolute terms. A same‑risk optimized version could push expected return higher but would also increase volatility. Since you’re already on the frontier, any changes would mainly be about fine‑tuning comfort with swings rather than fixing inefficiency. That’s a strong signal that the current allocation is fundamentally sound.
Dividends
- iShares iBoxx $ Investment Grade Corporate Bond ETF 4.60%
- Schwab U.S. TIPS ETF 4.00%
- Vanguard FTSE Developed Markets Index Fund ETF Shares 2.80%
- Vanguard Dividend Appreciation Index Fund ETF Shares 1.70%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.80%
- Weighted yield (per year) 2.38%
The overall yield is around 2.38%, coming from a mix of bond interest and stock dividends. The investment‑grade bond ETF and TIPS provide the highest cash payouts, while the equity funds yield between about 1.2% and 2.8%. That’s a solid, moderate income stream that can either be reinvested to compound growth or used to cover some ongoing spending. For growth‑oriented investors, reinvesting these dividends is powerful over time. For those wanting partial income, this level of yield offers a base without having to concentrate in high‑yield or risky securities, which keeps the risk profile aligned with a balanced, diversified strategy.
Ongoing product costs
- iShares iBoxx $ Investment Grade Corporate Bond ETF 0.14%
- Schwab U.S. TIPS ETF 0.03%
- Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
- Vanguard Dividend Appreciation Index Fund ETF Shares 0.06%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
- Weighted costs total (per year) 0.06%
The total expense ratio (TER) around 0.06% is impressively low. TER is the annual fee charged by the funds, and it quietly chips away at returns each year. At these levels, the drag is tiny – just $6 per year on a $10,000 investment – which is far below the industry average for active funds. Low costs are one of the few things investors can reliably control, and keeping them this low supports better long‑term performance. This cost structure is a real strength and lines up perfectly with best practices in index investing and evidence‑based portfolio construction.
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