Balanced portfolio with a strong focus on global equities and low costs

Report created on Jun 18, 2025

Risk 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.

Positions

This portfolio is structured with a predominant focus on equity ETFs, comprising 90% of the allocation, split between U.S. and international stocks. The remaining 10% is allocated to bond ETFs, divided between U.S. and international markets. Such a composition suggests a strategy leaning towards growth, with a balanced approach to geographical diversification. The high equity allocation is indicative of a moderate risk appetite, aiming for growth while mitigating risk through bonds.

Growth Info

The portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 9.90%, with a maximum drawdown of -31.80%. These figures suggest a robust performance history, balancing growth with periods of significant market corrections. The days contributing most to the returns highlight the portfolio's sensitivity to market highs and lows. This performance, when compared to benchmarks, should be considered in light of the investor's risk tolerance and long-term objectives.

Projection Info

Using Monte Carlo simulations, the portfolio's future performance has a wide range of outcomes, with a median increase of 116.4%. While simulations provide a spectrum of potential futures, they rely on historical data, which may not predict future conditions accurately. This method helps in understanding potential volatility and the need for periodic reassessment of the investment strategy.

Asset classes Info

  • Stocks
    89%
  • Bonds
    10%
  • Cash
    2%

The allocation across asset classes with 89% in stocks and 10% in bonds suggests a strategy focused on growth, with a minor cushion against market volatility provided by bonds. This mix supports long-term capital appreciation while offering some level of income and stability through fixed-income assets. Comparing this allocation to traditional balanced portfolios, the equity-heavy approach is more aggressive, aiming for higher returns at the expense of increased risk.

Sectors Info

  • Technology
    21%
  • Financials
    16%
  • Industrials
    10%
  • Consumer Discretionary
    9%
  • Health Care
    9%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Basic Materials
    4%
  • Energy
    4%
  • Real Estate
    3%
  • Utilities
    2%

The sector allocation is well-diversified across 11 sectors, with technology and financial services being the most prominent. This sectoral spread is beneficial for reducing unsystematic risk, although the heavy weighting in technology and finance sectors could expose the portfolio to sector-specific risks. Diversifying across sectors is crucial for mitigating impacts from sector downturns and capitalizing on growth across different areas of the economy.

Regions Info

  • North America
    57%
  • Europe Developed
    14%
  • Asia Emerging
    6%
  • Japan
    6%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic distribution shows a strong tilt towards North America, followed by developed European and emerging Asian markets. This global exposure enhances diversification, potentially reducing risk and tapping into growth opportunities worldwide. However, the underrepresentation of emerging markets and other regions might limit exposure to high-growth potential areas, suggesting a review of geographic allocation could enhance growth prospects.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    27%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    1%

The market capitalization allocation leans heavily towards mega and large-cap stocks, which tend to be more stable and less volatile than their smaller counterparts. While this can provide a solid foundation for the portfolio, incorporating a broader mix including more mid, small, and micro-cap stocks could enhance returns, albeit with higher 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 portfolio's current risk-return profile suggests it is near the Efficient Frontier, indicating an optimized balance between risk and return based on historical data. While this is a positive sign, investors should remember that market conditions evolve, and periodic rebalancing is necessary to maintain this optimization. Diversification beyond current asset classes and geography could further enhance this balance.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Vanguard Total International Bond Index Fund ETF Shares 4.30%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 2.14%

The dividend yields from the bond ETFs significantly contribute to the portfolio's income, complementing the growth focus of the equity components. This income can provide a steady cash flow, which is beneficial during market downturns or for investors seeking periodic income. Balancing growth and income through dividend-yielding investments is a sound strategy for long-term wealth accumulation.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Bond Index Fund ETF Shares 0.07%
  • 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 overall portfolio costs, represented by a Total Expense Ratio (TER) of 0.04%, are impressively low, maximizing the potential for net returns. Keeping costs low is a fundamental principle of investing that directly contributes to higher long-term returns by minimizing the drag on performance.

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