A balanced and broadly diversified portfolio with a focus on global equities and consumer staples

Report created on May 1, 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 has a strategic allocation that emphasizes broad market exposure, with 50% in a total stock market ETF, 30% in an international stock ETF, and 20% in a consumer staples sector ETF. This composition suggests a balanced approach, aiming to capture the growth potential of the global stock market while mitigating risk through sector-specific investments in consumer staples, known for their stability.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 10.07%, with a significant maximum drawdown of -32.61%. This performance indicates a strong recovery ability post-market dips, highlighting the portfolio's resilience. The days contributing most to returns underscore the impact of short-term gains, suggesting a review of volatility and its effect on overall performance might be beneficial.

Projection Info

Monte Carlo simulations, utilizing historical data to project future outcomes, show a wide range of potential portfolio values. With a median projected increase of 205.7% and 963 out of 1,000 simulations yielding positive returns, the outlook appears optimistic. However, the inherent uncertainty in these projections underscores the need for ongoing risk management.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily weighted towards stocks (99%), with a minimal cash position (1%). This high equity exposure aligns with the portfolio's balanced-risk profile but may necessitate periodic rebalancing to maintain alignment with the investor's risk tolerance and market conditions.

Sectors Info

  • Consumer Staples
    24%
  • Technology
    19%
  • Financials
    14%
  • Industrials
    9%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Telecommunications
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation reveals a diversified spread, with a significant tilt towards consumer defensive (24%), technology (19%), and financial services (14%). This sectoral diversification helps mitigate risk, though the emphasis on consumer staples suggests a defensive posture, potentially limiting upside during market rallies.

Regions Info

  • North America
    72%
  • Europe Developed
    12%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is predominantly invested in North America (72%), with developed Europe (12%) and emerging Asia (5%) also represented. This geographic distribution supports diversification but may benefit from increased exposure to emerging markets and developed Asia to enhance growth potential and reduce regional concentration risks.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    30%
  • Mid-cap
    20%
  • Small-cap
    5%
  • Micro-cap
    2%

The portfolio's market capitalization breakdown shows a preference for mega (41%) and large-cap (30%) companies, which typically offer stability and lower volatility. However, the relatively smaller allocation to mid (20%), small (5%), and micro-caps (2%) suggests room for increased diversification and potential growth from smaller, more agile 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.

Regarding risk vs. return optimization, the portfolio's current allocation suggests it is positioned near the Efficient Frontier, indicating an effective balance of risk and return based on historical data. However, continuous monitoring and periodic adjustments are essential to maintain this balance, especially considering market dynamics and changes in the investor's financial situation.

Dividends Info

  • Fidelity® MSCI Consumer Staples Index ETF 2.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.40%
  • Vanguard Total International Stock Index Fund ETF Shares 3.10%
  • Weighted yield (per year) 2.07%

The portfolio's average dividend yield of 2.07% contributes to its total return, with the international stock ETF offering the highest yield at 3.10%. This income stream enhances the portfolio's attractiveness, especially in volatile or bear markets, by providing a cushion against price declines.

Ongoing product costs Info

  • Fidelity® MSCI Consumer Staples Index ETF 0.08%
  • 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) 0.05%

With a total expense ratio (TER) of 0.05%, the portfolio benefits from low costs, which is crucial for long-term growth. Keeping investment costs minimal is a proven strategy for enhancing net returns, and this portfolio exemplifies this principle well.

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