A balanced and highly diversified portfolio with a strong focus on global equities and bonds
Report created on Oct 26, 2025Risk profile
4/7
Diversification profile
5/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 40.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 40.00% -
BN Vanguard Total Bond Market Index Fund ETF Shares
BND - US9219378356 10.00% -
IA iShares Gold Trust
IAU - US4642852044 10.00%
This portfolio is characterized by a balanced approach with 80% invested in equities (40% in U.S. stocks and 40% in international stocks) and 20% in bonds and gold. This allocation supports a diversified investment strategy, aiming to mitigate risk through a broad exposure across different asset classes and geographic regions. The inclusion of gold as a non-traditional asset class further diversifies the portfolio and provides a hedge against inflation and currency devaluation.
Growth
With a Compound Annual Growth Rate (CAGR) of 11.14% and a maximum drawdown of -28.83%, this portfolio has demonstrated resilience and the ability to recover from market downturns. The days contributing to 90% of returns highlight significant returns concentrated in brief periods, underscoring the importance of staying invested over the long term to capture these gains.
Projection
Monte Carlo simulations, which use historical data to forecast a range of possible outcomes, suggest this portfolio has a strong likelihood of positive future returns, with 987 out of 1,000 simulations ending positively. However, it's important to remember that these projections are hypothetical and cannot guarantee future results. They serve as a useful tool for understanding potential risk and return dynamics.
Asset classes
- Stocks 79%
- Other 10%
- Bonds 10%
- Cash 1%
The portfolio’s allocation across stocks (79%), bonds (10%), gold (10%), and a minimal cash position (1%) indicates a strategic balance between growth and safety. Stocks, the primary driver of growth, are complemented by bonds and gold, which can act as stabilizers during market volatility. This mix aligns with a balanced risk profile, aiming for long-term growth while cushioning against short-term market fluctuations.
Sectors
- Technology 19%
- Financials 14%
- Industrials 10%
- Consumer Discretionary 8%
- Health Care 7%
- Telecommunications 6%
- Consumer Staples 4%
- Basic Materials 4%
- Energy 3%
- Real Estate 2%
- Utilities 2%
Sector allocation reveals a significant emphasis on technology and financial services, followed by industrials and consumer cyclicals. This sector distribution suggests a growth-oriented strategy but also highlights potential volatility, especially in the technology sector. Diversification across sectors can help mitigate this risk, ensuring that the portfolio is not overly dependent on the performance of a single sector.
Regions
- North America 43%
- Europe Developed 15%
- Asia Emerging 7%
- Japan 6%
- Asia Developed 5%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographic exposure spans North America, developed Europe, emerging Asia, and other regions, offering a well-rounded global diversification. This geographic spread helps mitigate the impact of regional downturns, as different markets often perform asynchronously. However, the emphasis on North America and developed Europe suggests a conservative approach, potentially limiting exposure to high-growth emerging markets.
Market capitalization
- Mega-cap 35%
- Large-cap 24%
- Mid-cap 14%
- No data 10%
- Small-cap 4%
- Micro-cap 1%
The portfolio's market capitalization exposure leans heavily towards mega and big-cap stocks, which are typically less volatile than smaller companies. This allocation supports stability and resilience but may limit potential for outsized gains from small or micro-cap investments. Diversifying across market caps could introduce more growth opportunities, albeit with higher risk.
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-optimized for a balanced risk-return profile. However, continuous review and adjustment are key to maintaining this optimization, especially as market conditions and the investor's financial goals evolve. Adjustments might include rebalancing to maintain the intended asset allocation or shifting towards assets with better risk-adjusted return prospects.
Dividends
- Vanguard Total Bond Market Index Fund ETF Shares 3.70%
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.70%
- Weighted yield (per year) 1.89%
Dividend yields from the bond and stock ETFs contribute to the portfolio’s total yield of 1.89%, providing a steady income stream in addition to potential capital appreciation. While the yield is modest, it is a critical component of total return, especially in a low-interest-rate environment. Reinvesting these dividends can compound growth over time.
Ongoing product costs
- Vanguard Total Bond Market Index Fund ETF Shares 0.03%
- iShares Gold Trust 0.25%
- 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) 0.06%
The portfolio's total expense ratio (TER) of 0.06% is impressively low, maximizing the potential for net returns. Keeping costs low is crucial for long-term investment success, as even small differences in fees can significantly impact cumulative returns over decades.
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