Balanced and broadly diversified portfolio with a focus on global stock markets and dividend income
Report created on Sep 22, 2025Risk profile
4/7
Diversification profile
4/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 60.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 30.00% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 10.00%
This portfolio is composed of three ETFs, focusing heavily on the stock market with a 90% allocation in global stocks and a 10% emphasis on U.S. dividend-paying stocks. The Vanguard Total Stock Market Index Fund ETF Shares and Vanguard Total International Stock Index Fund ETF Shares make up the bulk of the portfolio, indicating a strong preference for diversified, global equity exposure. The inclusion of the Schwab U.S. Dividend Equity ETF adds an income-generating component, aiming to provide steady dividend returns alongside capital appreciation.
Growth
Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.36%, with a maximum drawdown of -34.39%. These figures suggest resilience and the potential for significant growth over time, though the drawdown highlights periods of volatility. The performance is notably influenced by a few days that contributed disproportionately to overall returns, underscoring the importance of staying invested through market fluctuations to capture peak growth days.
Projection
Monte Carlo simulations, which use historical data to forecast a range of possible future outcomes, suggest a wide array of potential scenarios for this portfolio. With 997 out of 1,000 simulations showing positive returns, the projections are generally optimistic. The median outcome indicates a potential 401.3% increase, reflecting confidence in the portfolio's ability to grow wealth over time, though it's important to remember that these projections are not guarantees.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio is almost entirely invested in stocks (99%), with a minimal cash allocation (1%). This heavy emphasis on equities is typical for growth-oriented investors aiming for higher returns, albeit with a corresponding increase in risk. The lack of diversification into other asset classes like bonds or real estate might limit the portfolio's ability to hedge against stock market volatility.
Sectors
- Technology 25%
- Financials 16%
- Industrials 11%
- Consumer Discretionary 10%
- Health Care 10%
- Telecommunications 8%
- Consumer Staples 7%
- Energy 5%
- Basic Materials 3%
- Real Estate 2%
- Utilities 2%
Sector allocation shows a strong emphasis on technology (25%) and financial services (16%), followed by industrials, consumer cyclicals, and healthcare. This sector distribution aligns with a growth-focused strategy but might expose the portfolio to sector-specific risks. Diversification across sectors can help mitigate these risks, and the portfolio's spread across 11 sectors suggests a deliberate approach to sector allocation.
Regions
- North America 72%
- Europe Developed 12%
- Asia Emerging 5%
- Japan 5%
- Asia Developed 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, the portfolio is heavily weighted towards North America (72%), with significant exposure to developed Europe (12%) and a modest presence in emerging Asian markets (5%). This distribution indicates a conservative approach to international diversification, favoring established markets over higher-risk emerging markets. Expanding geographic exposure could potentially enhance returns and reduce risk through greater diversification.
Market capitalization
- Mega-cap 38%
- Large-cap 33%
- Mid-cap 20%
- Small-cap 6%
- Micro-cap 2%
The market capitalization breakdown reveals a preference for large-cap companies (Mega 38%, Big 33%), which are typically more stable and less volatile than smaller companies. Medium, small, and micro caps constitute a smaller portion of the portfolio, suggesting a cautious approach to risk. Including a broader range of market caps could enhance growth potential and diversification.
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 allocation suggests it is positioned near the Efficient Frontier, indicating an optimal balance between risk and return based on historical data. While this balance is commendable, continuous review and adjustment are necessary to maintain this optimization, especially as market conditions and the investor's financial situation evolve.
Dividends
- Schwab U.S. Dividend Equity ETF 3.80%
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.30%
- Weighted yield (per year) 1.73%
The dividend yields from the Schwab U.S. Dividend Equity ETF (3.80%) and the Vanguard ETFs add an income component to the portfolio, contributing to its total yield of 1.73%. This approach balances growth with income generation, providing cash flow that can be reinvested or used as income, depending on the investor's needs.
Ongoing product costs
- Schwab U.S. Dividend Equity ETF 0.06%
- 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%
With a total expense ratio (TER) of 0.04%, the portfolio is highly cost-efficient, maximizing the potential for net returns. Low costs are crucial for long-term investment success, as they allow more of the portfolio's gross return to contribute to wealth accumulation.
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