A cautious yet growth-oriented portfolio with a strong foundation in global stocks and bonds

Report created on Oct 9, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio predominantly consists of a 60% allocation to the Vanguard Total World Stock Index Fund ETF Shares, a 30% allocation to the Vanguard Total Bond Market Index Fund ETF Shares, and a 10% allocation to the Invesco NASDAQ 100 ETF. This structure showcases a strategic balance between global equities and domestic bonds, with a tech-focused growth tilt through the NASDAQ 100 exposure. The high diversification score indicates a well-thought-out approach to spreading risk across various assets, sectors, and geographies. However, the heavy weighting towards stocks, particularly in technology, suggests a slightly more aggressive stance than the portfolio's cautious risk classification might imply.

Growth Info

The portfolio has shown a Compound Annual Growth Rate (CAGR) of 9.71%, with a maximum drawdown of -24.78%. This performance is indicative of a well-balanced risk-return profile, managing to deliver strong growth while maintaining a relatively moderate level of risk. The days contributing to 90% of returns being limited to 19.0 highlights the impact of significant market movements on the portfolio's performance. This historical performance, while impressive, should be viewed with the understanding that past results do not guarantee future returns.

Projection Info

Monte Carlo simulations, which use historical data to project potential future outcomes, suggest a wide range of possibilities for this portfolio. With 981 out of 1,000 simulations showing positive returns, the median projection indicates a potential 258.9% growth, underscoring the portfolio's robustness. However, it's important to remember that these projections are hypothetical and subject to the limitations of past data, which may not fully account for future market dynamics.

Asset classes Info

  • Stocks
    69%
  • Bonds
    30%
  • Cash
    1%

The allocation across asset classes with 69% in stocks, 30% in bonds, and a minimal cash holding reflects a balanced approach, leaning towards growth while using bonds to mitigate volatility. This mix is suitable for investors with a moderate risk tolerance, aiming for long-term growth with some level of income generation through bonds. The portfolio's asset class distribution aligns with its objectives, balancing the pursuit of higher returns through equities with the stability offered by bonds.

Sectors Info

  • Technology
    21%
  • Financials
    10%
  • Consumer Discretionary
    8%
  • Industrials
    7%
  • Telecommunications
    7%
  • Health Care
    6%
  • Consumer Staples
    4%
  • Basic Materials
    2%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation reveals a significant emphasis on technology, followed by diversified exposure across financial services, consumer cyclicals, and other sectors. This tech-heavy orientation may introduce higher volatility, especially during market downturns or interest rate hikes. However, the presence of defensive sectors like healthcare and consumer defensive provides a counterbalance, contributing to the portfolio's resilience. Diversifying further across sectors could enhance stability and reduce dependency on the performance of a single sector.

Regions Info

  • North America
    49%
  • Europe Developed
    9%
  • Asia Emerging
    4%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic distribution shows a predominant focus on North America, with meaningful exposure to developed Europe and emerging Asia. This global reach supports diversification, reducing the portfolio's vulnerability to regional economic downturns. However, the relatively low exposure to emerging markets and certain developed regions might limit potential growth opportunities. Increasing exposure to underrepresented regions could capture growth in dynamic economies and further diversify risks.

Market capitalization Info

  • Mega-cap
    31%
  • Large-cap
    22%
  • Mid-cap
    12%
  • Small-cap
    3%

The portfolio's allocation across market capitalizations, with a focus on mega and big-cap companies, underscores a preference for stability and established performance. While this may reduce volatility and provide steady returns, the relatively smaller allocation to medium, small, and micro-caps limits potential high-growth opportunities. Considering a slight increase in exposure to smaller caps could introduce more growth potential, 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 current allocation demonstrates a thoughtful balance between risk and return, but there's always room for optimization. Using the Efficient Frontier model could help identify opportunities to adjust asset allocations for an even better risk-return ratio. However, it's important to remember that optimization based on historical data does not guarantee future performance and should be considered alongside other factors, such as changing market conditions and personal financial goals.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 2.21%

The portfolio's dividend yield, averaging 2.21%, contributes to its income generation while supporting total return. The bond ETF's higher yield provides a steady income stream, complementing the growth potential of the stock ETFs. For investors seeking both growth and income, this dividend strategy aligns well with those goals. However, continually monitoring dividend performance and considering adjustments based on changing market conditions or personal income needs would be prudent.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.07%

With a total expense ratio (TER) of 0.07%, the portfolio benefits from low costs, enhancing long-term returns by minimizing the drag on performance. This cost efficiency is particularly advantageous in a low-yield environment, where every basis point saved on expenses can significantly impact net returns. Maintaining a focus on low-cost investments will continue to be a key factor in maximizing the portfolio's efficiency and profitability.

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