This portfolio has only about 10 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

Cautious Highly Diversified Portfolio with Low Costs and Moderate Returns

Report created on Jul 27, 2024

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is composed of three major ETFs: Vanguard Total Bond Market Index Fund ETF Shares (40%), Vanguard Total Stock Market Index Fund ETF Shares (40%), and Vanguard Total International Stock Index Fund ETF Shares (20%). This mix provides a balanced exposure to both domestic and international equities, along with a significant allocation to bonds. This blend is well-suited for a cautious investor, aiming to reduce risk while maintaining potential for moderate growth.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 7.34%, with a maximum drawdown of -23.68%. This indicates that the portfolio has experienced some volatility but has generally provided steady returns over time. Understanding this performance helps set realistic expectations and underscores the importance of maintaining a long-term perspective to weather market fluctuations.

Projection Info

Using a Monte Carlo simulation, which runs thousands of potential future scenarios to predict outcomes, the portfolio shows a median annualized return of 6.98%. With a hypothetical initial investment, the 5th percentile projection is -7.92%, while the 50th percentile is 131.5%, and the 67th percentile is 199.02%. This suggests a high probability of positive returns over the long term, reinforcing the portfolio's suitability for cautious investors.

Asset classes Info

  • Stocks
    59%
  • Bonds
    40%
  • Cash
    1%

The portfolio is diversified across two main asset classes: stocks (59.26%) and bonds (39.59%), with a small allocation to cash (1.12%). This allocation aligns well with a cautious risk profile, providing stability through bonds while allowing for growth potential through equities. To further optimize, consider periodically rebalancing to maintain the desired asset mix.

Sectors Info

  • Technology
    14%
  • Financials
    9%
  • Industrials
    7%
  • Health Care
    7%
  • Consumer Discretionary
    6%
  • Telecommunications
    4%
  • Consumer Staples
    4%
  • Energy
    3%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Utilities
    1%

Sector allocation is well-diversified, with significant exposure to Technology (14.40%), Financial Services (9.18%), and Industrials (6.86%). This spread helps mitigate sector-specific risks. However, the portfolio could benefit from reviewing sector weights periodically to ensure alignment with market conditions and personal risk tolerance without overexposure to any single sector.

Regions Info

  • North America
    41%
  • Europe Developed
    8%
  • Japan
    3%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is primarily concentrated in North America (41.39%), followed by Europe Developed (8.03%) and Japan (3.31%). This geographic diversification helps spread risk across different economic regions. To further enhance diversification, consider monitoring the allocation to emerging markets, which can offer growth potential but come with higher volatility.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.40%
  • Vanguard Total International Stock Index Fund ETF Shares 3.10%
  • Weighted yield (per year) 2.54%

The dividend yield data is not provided, but given the ETF composition, it is likely to offer a modest yield. Dividends can provide a steady income stream, which is particularly beneficial for cautious investors. Regularly review the portfolio's dividend yield and consider reinvesting dividends to enhance compounding returns over time.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.04%

The portfolio's total expense ratio (TER) is impressively low at 0.04%, thanks to the Vanguard ETFs. Low costs are crucial for maximizing net returns over the long term. Keeping investment costs low should remain a priority, as even small differences in fees can significantly impact portfolio performance over time.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

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