Balanced global portfolio with broad diversification strong income tilt and moderate tracking error to major benchmarks

Report created on Apr 26, 2026

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is built around five broad index ETFs with a clear core-and-satellite feel. The core is a total US stock fund at 40% plus a total US bond fund at 20%, giving a strong base of mainstream exposure. On top of that, there is 20% in a total international stock fund, 10% in a growth-focused QQQ ETF, and 10% in listed real estate. This mix combines growth, income, and stability in one bundle. Having everything in widely used index funds keeps the structure simple and transparent, which helps with understanding what drives returns and risk over time.

Growth Info

From 2016 to 2026, $1,000 in this portfolio grew to about $3,084, a compound annual growth rate (CAGR) of 11.98%. CAGR is like your average speed on a long road trip, smoothing out bumps along the way. That growth lagged the US market index, which returned 14.93% annually, and was slightly behind the global market at 12.24%. The portfolio’s worst drop, or max drawdown, was about -29%, a bit smaller than the roughly -34% falls in the benchmarks. So, historically, the portfolio traded some return for a somewhat softer ride during big market shocks.

Projection Info

The Monte Carlo projection uses past volatility and returns to simulate 1,000 possible paths for the next 15 years. Think of it as running the future many times with slightly different dice rolls based on historical patterns. The median outcome turns $1,000 into about $2,630, with a central “likely” range of roughly $1,893 to $3,677. Extreme but plausible paths stretch from about $1,141 to $6,076. This lines up with an average simulated return of 7.37% a year. It’s important to remember these are statistical what-ifs, not promises; markets can behave differently from history, especially around rare events.

Asset classes Info

  • Stocks
    70%
  • Bonds
    20%
  • Real Estate
    10%

Across asset classes, the portfolio holds 70% stocks, 20% bonds, and 10% real estate. This leans clearly toward growth, but with a meaningful bond slice to dampen swings. Compared with a pure equity benchmark, the bond portion explains why historic returns were lower but drawdowns milder. Real estate brings a different return driver, often linked to rents and property values, which can move differently than broad stocks or bonds. This allocation is well-balanced and aligns closely with global standards for a “balanced” mix, offering a blend of capital growth, some income, and partial shock absorbers during equity sell-offs.

Sectors Info

  • Technology
    21%
  • Real Estate
    11%
  • Financials
    10%
  • Industrials
    7%
  • Consumer Discretionary
    7%
  • Telecommunications
    6%
  • Health Care
    6%
  • Consumer Staples
    4%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%

This breakdown covers the equity portion of your portfolio only.

Sector-wise, the portfolio is anchored in technology at 21%, with meaningful exposure to real estate, financials, industrials, and consumer-related areas. That tech share is noticeable but not extreme, especially compared to some growth-heavy indices. A dedicated 11% in real estate stands out as a structural tilt toward property-linked income and inflation sensitivity. Other sectors like health care, telecommunications, and energy are all represented, which supports diversification across different economic drivers. Tech-heavy periods can boost returns in innovation cycles but can be more sensitive when interest rates rise or when growth expectations cool, so this balance is helpful.

Regions Info

  • North America
    61%
  • Europe Developed
    8%
  • Japan
    3%
  • Asia Developed
    3%
  • Asia Emerging
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

This breakdown covers the equity portion of your portfolio only.

Geographically, about 61% sits in North America, with the rest spread across Europe, Japan, other developed Asia, and emerging regions. This pattern is quite close to global equity market weights, where US and Canadian companies form a large share of world market value. Having roughly 40% outside North America reduces dependence on a single economy and currency, which can help if leadership rotates across regions. At the same time, the portfolio still benefits from the depth and liquidity of US markets. This allocation is well-balanced and aligns closely with global standards for regional diversification.

Market capitalization Info

  • Mega-cap
    30%
  • Large-cap
    25%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    1%

This breakdown covers the equity portion of your portfolio only.

By company size, there is a strong tilt toward mega-cap and large-cap stocks, together around 55%, with mid-caps at 17% and smaller companies making up a modest slice. Larger firms tend to be more stable and widely followed, which can reduce idiosyncratic risk compared with portfolios dominated by tiny, volatile names. The presence of mid and small caps still adds some extra growth potential and diversification, since these companies can behave differently from giants. Overall, the size mix looks broadly market-like, with a slight emphasis on bigger, established businesses driving most of the portfolio’s equity behavior.

True holdings Info

  • NVIDIA Corporation
    3.45%
    Part of fund(s):
    • Invesco QQQ Trust
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Apple Inc
    3.10%
    Part of fund(s):
    • Invesco QQQ Trust
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Microsoft Corporation
    2.31%
    Part of fund(s):
    • Invesco QQQ Trust
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Amazon.com Inc
    1.76%
    Part of fund(s):
    • Invesco QQQ Trust
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Vanguard REIT II Index Fund Institutional Plus Shares
    1.46%
    Part of fund(s):
    • Vanguard Real Estate Index Fund ETF Shares
  • Alphabet Inc Class A
    1.42%
    Part of fund(s):
    • Invesco QQQ Trust
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Broadcom Inc
    1.28%
    Part of fund(s):
    • Invesco QQQ Trust
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Alphabet Inc Class C
    1.18%
    Part of fund(s):
    • Invesco QQQ Trust
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Meta Platforms Inc.
    1.16%
    Part of fund(s):
    • Invesco QQQ Trust
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Tesla Inc
    1.02%
    Part of fund(s):
    • Invesco QQQ Trust
    • LS 1x Tesla Tracker ETP Securities GBP
    • Vanguard Total Stock Market Index Fund ETF Shares
  • Top 10 total 18.13%

This breakdown covers the equity portion of your portfolio only.

Looking through the ETFs, a handful of big names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Meta, Tesla, and Broadcom appear across multiple funds. This overlap means that even without owning any single stock directly, those companies together account for a noticeable slice of the portfolio’s risk and return. For example, just NVIDIA, Apple, and Microsoft already sum to nearly 9% of covered exposure. Because only ETF top-10 holdings are visible, overlap is likely understated. This is a normal feature of index-based investing, but it’s useful to know that the portfolio is more exposed to a few mega-cap leaders than the fund list alone suggests.

Factors Info

Value
Preference for undervalued stocks
Neutral
Data availability: 70%
Size
Exposure to smaller companies
Neutral
Data availability: 80%
Momentum
Exposure to recently outperforming stocks
Neutral
Data availability: 70%
Quality
Preference for financially healthy companies
Neutral
Data availability: 70%
Yield
Preference for dividend-paying stocks
High
Data availability: 100%
Low Volatility
Preference for stable, lower-risk stocks
Neutral
Data availability: 100%

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 exposure is mostly neutral across value, size, momentum, quality, and low volatility, meaning the portfolio behaves broadly like the overall market on those characteristics. Factor exposure describes how much your holdings lean into traits like cheapness (value) or recent winners (momentum) that research links to returns. The standout here is yield at 60%, which is a mild tilt toward higher-income assets. That tilt likely comes from the bond and real estate positions plus international stocks with stronger dividends. In practice, this can mean a larger share of total return arriving as cash distributions, which can be attractive for income-focused approaches.

Risk contribution Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Weight: 40.00%
    50.4%
  • Vanguard Total International Stock Index Fund ETF Shares
    Weight: 20.00%
    21.8%
  • Invesco QQQ Trust
    Weight: 10.00%
    14.2%
  • Vanguard Real Estate Index Fund ETF Shares
    Weight: 10.00%
    11.6%
  • Vanguard Total Bond Market Index Fund ETF Shares
    Weight: 20.00%
    2.0%

Risk contribution shows how much each holding drives overall ups and downs, which can differ from its weight. Here, the 40% US total stock fund contributes about 50% of portfolio risk, so its movements matter disproportionately. The international stock ETF at 20% weight adds roughly 22% of risk, while the 10% QQQ slice contributes over 14%, reflecting its growth and tech tilt. Real estate adds around 12% of risk for its 10% weight. The bond fund is the standout stabilizer: at 20% weight, it contributes only about 2% of total volatility. Top three holdings together drive over 86% of risk, showing where the real action is.

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 efficient frontier chart compares risk and return for different mixes of these same five funds. The current portfolio has a Sharpe ratio of 0.52, which measures return per unit of risk, using 4% as a risk-free baseline. The optimal mix on the frontier shows a much higher Sharpe of 0.91, with higher expected return but also higher volatility, while the minimum-variance mix is much calmer but with low return. The current allocation sits about 2.5 percentage points below the efficient frontier at its risk level, meaning a different weighting of the same components could, in theory, deliver better risk-adjusted results without adding new funds.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.90%
  • Invesco QQQ Trust 0.40%
  • Vanguard Real Estate Index Fund ETF Shares 3.70%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 2.19%

The overall dividend yield is about 2.19%, combining income from bonds, stocks, and real estate. The bond ETF and REIT fund are the main income engines, with yields around 3.9% and 3.7%, while US and international equity funds sit lower but still contribute. QQQ’s yield is very modest, reflecting its growth orientation. Dividends and bond interest can feel like a steady paycheck on top of price changes, and over time they make up a big share of total return. This portfolio’s yield tilt, especially from bonds and real estate, helps anchor returns even in years when prices move sideways.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Invesco QQQ Trust 0.20%
  • Vanguard Real Estate Index Fund ETF Shares 0.12%
  • 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) 0.06%

Costs are a real drag on long-term returns, but here they’re impressively low. The total expense ratio (TER) across the portfolio is only about 0.06% per year, thanks to heavily using broad Vanguard index ETFs. For every $1,000 invested, that’s roughly $0.60 a year in fund fees, which is significantly below industry averages for multi-asset portfolios. The highest-cost piece is QQQ at 0.20%, still modest by active-fund standards. Keeping costs down means more of the portfolio’s gross return stays in the account, and that gap compounds over decades. The costs are impressively low, supporting better long-term performance.

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