Balanced and broadly diversified ETF portfolio with a focus on stocks and dividends

Report created on Sep 22, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is composed of three ETFs, with a heavy emphasis on the Vanguard Total Stock Market Index Fund ETF Shares, making up 70% of the allocation. This is complemented by the Vanguard Total International Stock Index Fund ETF Shares at 20%, and the Schwab U.S. Dividend Equity ETF at 10%. The allocation shows a strong preference for U.S. equities but includes international exposure to ensure diversification. The portfolio's focus on ETFs suggests a strategy aimed at capturing broad market returns with a tilt towards dividend-yielding stocks, which can provide income and potential for growth.

Growth Info

Historical performance indicates a Compound Annual Growth Rate (CAGR) of 13.94%, with a maximum drawdown of -34.53%. This suggests that while the portfolio has experienced significant volatility, it has also provided strong returns over time. The days that make up 90% of returns being concentrated in 33.0 days highlights the impact of short-term significant gains on overall performance. This data underscores the importance of staying invested over the long term to capture key market movements.

Projection Info

Monte Carlo simulations, projecting future performance based on historical data, show a wide range of outcomes with a median increase of 373.7%. It's important to note that while Monte Carlo provides a spectrum of possible futures, it cannot predict market movements with certainty. This analysis helps in understanding potential volatility and the importance of maintaining a diversified and balanced portfolio to mitigate risk.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is almost entirely in stocks (99%) with a minimal cash holding (1%). This allocation is geared towards investors seeking growth over the long term, as stocks historically offer higher returns than cash or bonds. However, this also comes with higher volatility, which needs to be considered in light of the investor's risk tolerance and investment horizon.

Sectors Info

  • Technology
    27%
  • Financials
    15%
  • Industrials
    11%
  • Consumer Discretionary
    10%
  • Health Care
    10%
  • Telecommunications
    8%
  • Consumer Staples
    7%
  • Energy
    5%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    2%

The sector allocation is heavily weighted towards Technology (27%) and Financial Services (15%), with significant investments in Industrials, Consumer Cyclicals, and Healthcare. This sector distribution reflects a growth-oriented strategy, as these sectors often lead market rallies. However, the heavy tech weighting could expose the portfolio to sector-specific risks, such as regulatory changes or market sentiment shifts.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is predominantly invested in North America (81%), with modest exposure to developed Europe (8%) and emerging Asian markets (3%). This distribution underscores a home bias but includes international diversification to capture global growth opportunities and mitigate region-specific risks.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    33%
  • Mid-cap
    20%
  • Small-cap
    6%
  • Micro-cap
    2%

The market capitalization breakdown shows a preference for Mega (38%) and Big (33%) cap stocks, with a smaller allocation towards Medium (20%), Small (6%), and Micro (2%) cap stocks. This suggests a conservative approach, favoring established companies likely to offer stability and potential for steady growth, though possibly at the expense of the higher growth potential found in smaller companies.

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 analysis suggests there may be room to optimize the portfolio for a better risk-return ratio. While the current allocation is strong, slight adjustments in asset allocation could potentially offer improved returns for the same level of risk. This optimization process is an ongoing task and should be revisited periodically to adapt to changing market conditions and investment goals.

Dividends Info

  • 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) 1.61%

The dividend yields from the ETFs contribute to the portfolio's total yield of 1.61%, with the Schwab U.S. Dividend Equity ETF providing the highest yield at 3.80%. This income stream can be particularly attractive in volatile markets, offering a buffer against price fluctuations and contributing to total returns over time.

Ongoing product costs Info

  • 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%

The portfolio's total expense ratio (TER) of 0.04% is impressively low, maximizing the potential for net returns. Keeping costs low is crucial for long-term investment success, as fees can significantly erode returns over time. This portfolio benefits from the cost efficiency of ETFs, which typically offer lower fees than actively managed funds.

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