A portfolio that thinks diversification is just a fancy word for playing it safe
Report created on Jul 21, 2025Risk profile
4/7
Diversification profile
4/5
Positions
-
VO Vanguard S&P 500 Growth Index Fund ETF Shares
VOOG - US9219325050 50.00% -
VE Vanguard FTSE Developed Markets Index Fund ETF Shares
VEA - US9219438580 30.00% -
SH iShares 1-3 Year Treasury Bond ETF
SHY - US4642874576 20.00%
At first glance, the portfolio composition seems like someone tried to bake a cake with only flour and water, forgetting that a pinch of salt, some eggs, and sugar could have made it much better. With half of the portfolio in the Vanguard S&P 500 Growth Index Fund ETF Shares, it's like betting half your salary on a horse because it looked at you funny. The 30% in Vanguard FTSE Developed Markets Index Fund ETF Shares adds a bit of international flavor, but it's like adding salt to a bland soup — necessary but not enough to make it exciting. The 20% in iShares 1-3 Year Treasury Bond ETF is the mattress under the mattress, just in case the sky falls.
Growth
Historically, this portfolio has performed like a student who only studies the night before the exam: surprisingly well, but with a high risk of burnout. A CAGR of 11.16% is nothing to sneeze at, but that max drawdown of -29.06% is like remembering you forgot to study a whole chapter as you walk into the exam. Those 30 days that make up 90% of returns are the all-nighters that somehow got you through college.
Projection
Monte Carlo simulations are like fantasy football for investors, and in this case, they're predicting a wide range of outcomes, from "modest yacht" to "solid gold house." With a 5th percentile at 17.4% and a 50th at 201.4%, the portfolio's future looks as uncertain as a weather forecast during hurricane season. Remember, simulations are educated guesses, not crystal balls.
Asset classes
- Stocks 79%
- Bonds 20%
- Cash 1%
Diving into asset classes, we find an 80/20 split between stocks and bonds, making it clear that the portfolio's comfort zone is about as adventurous as a tourist who won't leave the hotel. Stocks are great for growth, and bonds are there for safety, but with only two asset classes really in play, it's like showing up to a potluck with just chips and dip — appreciated but hardly memorable.
Sectors
- Technology 24%
- Financials 13%
- Industrials 9%
- Consumer Discretionary 9%
- Telecommunications 9%
- Health Care 6%
- Consumer Staples 4%
- Basic Materials 2%
- Energy 2%
- Real Estate 2%
- Utilities 2%
The sector spread is like a buffet where you loaded up on carbs and forgot the veggies. Technology at 24% is the portfolio's comfort food, with financial services and industrials rounding out the meal. This overindulgence in tech could lead to heartburn if the market takes a turn. Diversification across sectors doesn't just mean picking different types of equities; it means not putting all your eggs in one basket, even if it's a really shiny basket.
Regions
- North America 53%
- Europe Developed 16%
- Japan 6%
- Asia Developed 2%
- Australasia 2%
With 53% in North America and a smattering across other developed markets, this portfolio's geography lesson seems to have focused too much on the home country. It's like planning a world tour and only visiting Canada and Europe. Emerging markets are barely on the radar, which is like ignoring the spicy section of the menu — it could add some zest to the returns.
Market capitalization
- Mega-cap 45%
- Large-cap 22%
- Mid-cap 10%
- Small-cap 1%
The market capitalization allocation is like preferring blockbuster movies over indie films. With 45% in mega-caps, it's clear there's a love for the big names, but this comes at the expense of potential growth from smaller companies. It's a safety-first approach, akin to swimming with floaties in the shallow end.
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 is like the holy grail of portfolio optimization, and this one seems to be wandering in the desert. The goal is to maximize returns for a given level of risk, but this portfolio is like a car with only one gear — it'll get you there, but not very efficiently. Diversification across more asset classes and a keener eye on allocation could shift things towards a more optimal mix.
Dividends
- iShares 1-3 Year Treasury Bond ETF 4.00%
- Vanguard FTSE Developed Markets Index Fund ETF Shares 2.70%
- Vanguard S&P 500 Growth Index Fund ETF Shares 0.50%
- Weighted yield (per year) 1.86%
The dividend yield strategy here is like expecting a lemonade stand to pay your mortgage. With an overall yield of 1.86%, it's clear that income isn't the main goal, but even for growth-focused portfolios, a little more attention to dividends wouldn't hurt. It's like leaving money on the table — or worse, in the couch cushions.
Ongoing product costs
- iShares 1-3 Year Treasury Bond ETF 0.15%
- Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
- Vanguard S&P 500 Growth Index Fund ETF Shares 0.10%
- Weighted costs total (per year) 0.10%
The total TER of 0.10% is like finding a parking spot in the city that doesn't cost a fortune — pleasantly surprising and somewhat suspicious. Low costs are commendable, but don't forget, you often get what you pay for. In the world of investments, a little extra cost can sometimes mean a lot more value.
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