Balanced and broadly diversified portfolio with a strong international focus and low costs

Report created on Sep 3, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

Your portfolio composition showcases a strategic emphasis on international diversification, with 60% allocated to international stocks, balanced by a 40% investment in U.S. equities. This structure is commendable for its broad global exposure, aligning well with a balanced risk profile. The portfolio's diversification across major economic sectors and geographic regions enhances its resilience against market volatility. However, the significant weighting in international stocks, while beneficial for diversification, may introduce currency risk and exposure to geopolitical factors.

Growth Info

Historically, your portfolio has achieved a Compound Annual Growth Rate (CAGR) of 11.98%, which is impressive. The maximum drawdown of -33.54% indicates the portfolio's resilience during market downturns, a critical factor for balanced investors. The days contributing to 90% of the returns highlight the impact of significant market movements on performance. These historical metrics serve as a useful guide, but remember, past performance is not indicative of future results. It's essential to continue evaluating performance trends in the context of current market conditions.

Projection Info

Monte Carlo simulations project a wide range of potential outcomes for your portfolio, with a median increase of 466%. This method, while useful for understanding possible future scenarios, relies on historical data and cannot predict unforeseen market shifts. The high percentage of simulations with positive returns underscores the portfolio's robustness, but it's vital to remain cautious and not overly reliant on these projections for future planning.

Asset classes Info

  • Stocks
    98%
  • Cash
    2%

Your portfolio's asset allocation is predominantly in stocks (98%), with a minimal cash reserve (2%). This allocation is suitable for a balanced investor seeking growth while maintaining a moderate risk level. However, the almost exclusive focus on equities means your portfolio may be more susceptible to market fluctuations. Consider diversifying further into other asset classes, such as bonds or real estate, to mitigate risk and potentially smooth out returns over time.

Sectors Info

  • Technology
    25%
  • Financials
    18%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Health Care
    8%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Basic Materials
    5%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%

The sector allocation within your portfolio is well-diversified, covering technology, financial services, industrials, and consumer cyclicals as the top sectors. This diversification is crucial for spreading risk and capturing growth across different market segments. However, the heavy emphasis on technology and financial services could make your portfolio more vulnerable to sector-specific downturns. Balancing this with increased allocations to defensive sectors like healthcare and consumer defensive might provide added stability.

Regions Info

  • North America
    45%
  • Europe Developed
    23%
  • Asia Emerging
    10%
  • Japan
    9%
  • Asia Developed
    7%
  • Australasia
    3%
  • Africa/Middle East
    2%
  • Latin America
    1%

Your geographic allocation effectively balances between North America (45%) and other regions, with significant exposure to developed European markets and emerging markets in Asia. This global diversification is a strength, reducing the risk tied to any single economy. However, the relatively lower allocation to emerging markets and specific regions like Latin America and Africa/Middle East suggests potential areas for further diversification, given their growth prospects.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    29%
  • Mid-cap
    16%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's focus on mega (48%) and big-cap (29%) companies, while providing stability and lower volatility, may limit exposure to the higher growth potential of medium, small, and micro-cap stocks. Diversifying more into smaller caps could introduce more growth opportunities, albeit with higher risk. It's a balance that should be carefully considered based on your risk tolerance and investment horizon.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation observed between the Schwab U.S. Large-Cap Growth ETF and the Vanguard Total Stock Market Index Fund ETF Shares indicates overlapping investments, which may limit the benefits of diversification. Identifying and reducing such overlap can enhance portfolio efficiency by ensuring each investment contributes to diversification, potentially improving risk-adjusted returns.

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, your current asset allocation shows a need for optimization to improve the risk-return ratio. Specifically, addressing the high correlation between certain ETFs and diversifying into different asset classes or sectors could enhance portfolio efficiency. Optimization should aim to maintain your balanced risk profile while seeking to maximize returns for the level of risk you're comfortable with.

Dividends Info

  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 2.00%

Your portfolio's dividend yield strategy, with a total yield of 2.00%, contributes to its income generation while also supporting reinvestment opportunities. The higher yield from the Vanguard Total International Stock Index Fund ETF Shares is particularly noteworthy, enhancing the portfolio's income profile. Regularly reviewing dividend performance in relation to overall portfolio goals can ensure that this income stream remains aligned with your investment strategy.

Ongoing product costs Info

  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • 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 overall cost, with a Total Expense Ratio (TER) of 0.04%, is impressively low, maximizing the potential for net returns. Low costs are vital for long-term growth, as they compound positively over time. Your focus on low-cost ETFs is a prudent strategy, ensuring more of your investment returns are retained rather than lost to fees.

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