A balanced and highly diversified investment strategy with a focus on stocks and low costs

Report created on May 31, 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 three Vanguard ETFs, with a heavy emphasis on the Total Stock Market Index Fund ETF Shares, making up 70% of the allocation. This is complemented by 20% in International Stock and 10% in the Bond Market. Such a composition reflects a balanced approach, leaning towards growth with a substantial stake in equities globally. The diversification across major sectors and geographic regions, alongside a mix of asset classes, aligns with a strategy designed to mitigate risk while capturing growth opportunities across the board.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 10.80%, with a maximum drawdown of -32.18%. This performance suggests resilience in navigating market volatility, with significant recovery and growth over time. The days contributing most to returns underline the impact of short-term gains but emphasize the importance of long-term holding to capture these spikes. Comparing these metrics to benchmarks could provide further insight into relative performance, especially during downturns.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 138.3% in portfolio value. The positive returns in 949 out of 1,000 simulations underscore the strategy's potential for growth, despite market uncertainties. However, it's crucial to remember that such projections are based on historical data and assumptions, which cannot guarantee future performance. This tool helps in understanding potential risks and outcomes, aiding in setting realistic expectations and preparing for various market scenarios.

Asset classes Info

  • Stocks
    89%
  • Bonds
    10%
  • Cash
    1%

With 89% allocated to stocks and 10% to bonds, the portfolio is positioned for growth while maintaining a cushion against market volatility through its bond holdings. The small cash allocation provides liquidity, albeit minimal. This asset class distribution is suitable for a balanced profile that seeks to capitalize on the growth potential of equities with a moderate buffer through fixed-income securities.

Sectors Info

  • Technology
    23%
  • Financials
    15%
  • Health Care
    10%
  • Consumer Discretionary
    9%
  • Industrials
    9%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Real Estate
    3%
  • Utilities
    2%

The sector allocation highlights a significant tilt towards Technology, Financial Services, and Healthcare, which are sectors known for their growth potential but also for their volatility. The balance with more stable sectors like Consumer Defensive and Utilities provides a strategic mix aimed at capturing growth while mitigating risk. Sector trends, such as the increasing importance of technology in the economy, support this allocation but warrant continuous monitoring due to potential sector-specific risks.

Regions Info

  • North America
    71%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographic distribution shows a strong North American focus, with 71% of assets allocated there, complemented by diversified exposure across developed and emerging markets globally. This geographic spread supports risk mitigation through diversification while capitalizing on growth opportunities in different economies. However, the minimal exposure to emerging markets in Europe and Latin America suggests potential areas for diversification, considering their growth prospects.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    27%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    2%

The market capitalization breakdown with a focus on Mega and Big cap stocks indicates a preference for stability and lower volatility associated with larger, well-established companies. However, the presence of Medium, Small, and Micro caps, albeit smaller, introduces growth potential and diversification benefits. This mix supports a balanced risk-return profile, aligning with the overall portfolio strategy.

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, the current portfolio appears well-positioned near the optimal risk-return balance for its asset allocation. Adjustments could be made to enhance this positioning further, such as fine-tuning the stock-bond ratio or diversifying geographic and sector exposures more broadly. However, the portfolio's foundation is solid, suggesting that any adjustments would be more about refining than overhauling the strategy.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.87%

The dividend yields from the ETFs contribute to the portfolio's total income, with a combined yield of 1.87%. This income stream, particularly from the bond ETF, enhances the portfolio's return profile, providing a steady cash flow which can be reinvested or used as income. Given the current allocations, the portfolio is positioned to benefit from both capital appreciation and income, suitable for balanced investors seeking growth with a moderate income component.

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 0.05%
  • Weighted costs total (per year) 0.03%

The portfolio's overall expense ratio is impressively low, averaging 0.03%, which is beneficial for long-term growth as lower costs translate to higher net returns. This cost efficiency is a strong point, reflecting well on the selection of low-cost Vanguard ETFs. Keeping costs low is a critical factor in portfolio management, especially important for investors with a long-term horizon, as even small differences in fees can significantly impact compounded returns.

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