Balanced portfolio with a strong focus on US and technology sectors offering broad diversification
Report created on Aug 20, 2025Risk profile
4/7
Diversification profile
4/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 77.78% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 22.22%
This portfolio predominantly consists of two ETFs, with a significant 77.78% allocation in the Vanguard Total Stock Market Index Fund ETF Shares and a 22.22% allocation in the Vanguard Total International Stock Index Fund ETF Shares. This structure suggests a strong emphasis on the US market, complemented by international exposure to provide diversification. The portfolio's broad diversification is reflected in its diversification score, which stands at 4 out of 5, indicating a well-rounded approach to asset allocation across different sectors and geographies.
Growth
The historical performance of this portfolio, with a Compound Annual Growth Rate (CAGR) of 13.80%, demonstrates robust growth. The maximum drawdown of -34.68% suggests that while the portfolio has experienced significant volatility, its overall trajectory has been upward. The fact that 90% of returns are concentrated in just 32 days highlights the importance of remaining invested over the long term to capture these critical periods of gains.
Projection
Monte Carlo simulations, which use historical data to predict future outcomes, show a wide range of potential portfolio values. With 988 out of 1,000 simulations yielding positive returns and a median projected growth of 369.3%, these results underscore the portfolio's potential for substantial growth. However, it's important to remember that such simulations are based on past data, which is not a guaranteed predictor of future performance.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's asset allocation is heavily weighted towards stocks (99%), with a minimal cash reserve (1%). This allocation underscores a growth-oriented strategy but also implies higher volatility and risk. The absence of other asset classes like bonds or real estate investment trusts (REITs) means the portfolio may lack certain elements of diversification that could potentially smooth out returns during stock market downturns.
Sectors
- Technology 28%
- Financials 16%
- Industrials 11%
- Consumer Discretionary 11%
- Health Care 9%
- Telecommunications 8%
- Consumer Staples 5%
- Energy 3%
- Basic Materials 3%
- Real Estate 3%
- Utilities 2%
Sectoral allocation reveals a heavy emphasis on technology (28%), followed by financial services (16%) and industrials (11%). This tech-heavy focus aligns with recent trends favoring technology sector growth but also introduces sector-specific risks, such as higher volatility and potential regulatory challenges. The presence of 11 different sectors, however, indicates a degree of diversification that can mitigate some of these risks.
Regions
- North America 79%
- Europe Developed 9%
- Asia Emerging 4%
- Japan 3%
- Asia Developed 2%
- Australasia 1%
- Africa/Middle East 1%
Geographically, the portfolio is heavily skewed towards North America (79%), with modest exposure to developed Europe (9%) and emerging Asia (4%). This concentration in the US market leverages the growth potential of the world's largest economy but also exposes the portfolio to regional economic and political risks. Expanding international exposure could offer additional diversification benefits and access to growth in other regions.
Market capitalization
- Mega-cap 42%
- Large-cap 31%
- Mid-cap 19%
- Small-cap 6%
- Micro-cap 2%
The portfolio's market capitalization breakdown shows a preference for large-cap stocks (Mega 42%, Big 31%), which are typically considered less risky than smaller companies. However, the inclusion of medium (19%), small (6%), and micro (2%) caps introduces a balance, potentially enhancing returns through exposure to faster-growing, albeit riskier, segments of the 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.
Considering the Efficient Frontier, which seeks to optimize the risk-return profile by adjusting asset allocation, this portfolio appears well-positioned for its risk score of 4 out of 7. However, there may be room for improvement by diversifying into additional asset classes or adjusting sector and geographic exposures to further enhance the risk-return trade-off, especially for investors seeking either lower volatility or higher returns.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.70%
- Weighted yield (per year) 1.53%
Dividend yields of 1.20% for the Vanguard Total Stock Market Index Fund ETF Shares and 2.70% for the Vanguard Total International Stock Index Fund ETF Shares contribute to a total portfolio yield of 1.53%. This passive income stream can provide a cushion during market volatility and contribute to the portfolio's total return, underscoring the role of dividends in a balanced investment strategy.
Ongoing product costs
- 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) 0.03%
The portfolio's costs are impressively low, with total expense ratios (TER) of 0.03% for the Vanguard Total Stock Market Index Fund ETF Shares and 0.05% for the Vanguard Total International Stock Index Fund ETF Shares. Low costs are crucial for enhancing long-term returns, as they directly reduce the drag on investment performance, allowing investors to retain a greater share of their returns.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey