Balanced and highly diversified portfolio with a global stock focus and a blend of bond exposures

Report created on Aug 3, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio primarily consists of a 70% allocation to the Vanguard Total World Stock Index Fund ETF, signifying a strong emphasis on global equities. The remaining 30% is spread across various bond ETFs, with a focus on U.S. bonds, including 15% in the iShares Core Total USD Bond Market ETF, 10% in the VanEck Fallen Angel High Yield Bond ETF, and 5% in the iShares 20+ Year Treasury Bond ETF. This composition suggests a balanced approach, blending growth potential from equities with the stability of bonds.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 8.81%, with a maximum drawdown of -27.59%. The days contributing to 90% of the returns highlight the portfolio's vulnerability to short-term volatility but also underscore its resilience and potential for recovery. Comparing this to benchmark indices would provide further context, indicating how well the portfolio has managed risk while capturing growth.

Projection Info

Monte Carlo simulations project a wide range of outcomes, from a 5th percentile loss of 20% to a 67th percentile gain of 127.5%, with an annualized return of all simulations at 5.07%. This underscores the inherent uncertainty in market performance but also suggests a favorable long-term outlook. The high count of simulations with positive returns (886 out of 1,000) reinforces the portfolio's resilience.

Asset classes Info

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

The portfolio's asset class distribution, with 69% in stocks and 30% in bonds, aligns with a balanced investment strategy. This diversification across asset classes can help mitigate risk while offering growth potential. The small cash holding enhances liquidity, providing flexibility to capitalize on market opportunities or rebalance as needed.

Sectors Info

  • Technology
    17%
  • Financials
    12%
  • Industrials
    8%
  • Consumer Discretionary
    8%
  • Health Care
    6%
  • Telecommunications
    6%
  • Consumer Staples
    4%
  • Basic Materials
    3%
  • Energy
    3%
  • Real Estate
    2%
  • Utilities
    2%

Sector-wise, the portfolio is diversified across technology, financial services, industrials, and consumer cyclicals, among others. This sectoral allocation supports risk management by spreading exposure across different industries, which can react differently to market conditions. However, the significant weighting in technology and financial services could introduce sector-specific risks.

Regions Info

  • North America
    60%
  • Europe Developed
    10%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America (60%), with smaller exposures to developed Europe, emerging Asia, and other regions. This geographic distribution enhances diversification but may also reflect an underrepresentation in potentially higher-growth emerging markets, which could be an area for further diversification.

Market capitalization Info

  • Mega-cap
    30%
  • Large-cap
    22%
  • Mid-cap
    13%
  • Small-cap
    4%
  • Micro-cap
    1%

The market capitalization breakdown shows a focus on mega and big cap stocks, which tend to be more stable but might offer lower growth potential compared to smaller caps. This allocation supports the portfolio's balanced risk profile, though incorporating more mid or small caps could enhance growth prospects.

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.

Considering the Efficient Frontier, this portfolio appears well-positioned for a balanced risk-return profile. However, there's always room for optimization, especially in response to changing market conditions or personal financial goals. Regularly assessing the allocation and performance can ensure the portfolio remains aligned with the investor's objectives.

Dividends Info

  • VanEck Fallen Angel High Yield Bond ETF 5.70%
  • iShares Core Total USD Bond Market ETF 3.80%
  • iShares 20+ Year Treasury Bond ETF 4.00%
  • Vanguard Total World Stock Index Fund ETF Shares 1.80%
  • Weighted yield (per year) 2.60%

The dividend yields from the bond ETFs contribute to the portfolio's income, complementing capital gains from equity investments. This income component is crucial for investors seeking regular income or those looking to reinvest dividends to compound growth. The overall yield of 2.60% is a significant contributor to total returns, especially in low-interest-rate environments.

Ongoing product costs Info

  • VanEck Fallen Angel High Yield Bond ETF 0.25%
  • iShares Core Total USD Bond Market ETF 0.06%
  • iShares 20+ Year Treasury Bond ETF 0.15%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.09%

The portfolio's total expense ratio (TER) of 0.09% is impressively low, enhancing net returns over the long term. Keeping costs minimal is vital for maximizing investment efficiency, particularly in a balanced portfolio where the goal is steady, long-term growth.

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