Balanced and broadly diversified portfolio with a strong focus on global equities

Report created on Jun 6, 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 is structured around two core ETFs, emphasizing a broad market approach with a 75% allocation in a Total Stock Market Index and 25% in an International Stock Index. This composition underscores a strategic decision to blend domestic and international equities, providing exposure to a wide array of sectors and geographic regions. The heavy tilt towards stocks aligns with a growth-oriented strategy, while the split between U.S. and international equities aims to capture global market performance and mitigate region-specific risks.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 11.90%, with a significant drawdown of -34.69%. These metrics reflect the inherent volatility and risk associated with a stock-heavy portfolio but also highlight its potential for substantial returns. The days contributing most to returns suggest that a few key periods have driven performance, emphasizing the importance of staying invested during market highs and lows.

Projection Info

Monte Carlo simulations, based on 1,000 trials, project a wide range of outcomes with a median increase of 248.3% in portfolio value, indicating potential for significant growth. However, the 5th percentile outcome at 15.4% growth suggests there's also a risk of relatively low returns. These projections, while informative, are based on historical data and assumptions that cannot guarantee future performance, serving as a reminder of the uncertainties in market investments.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily skewed towards stocks (99%), with a minimal cash position (1%). This composition supports a growth-focused investment strategy but carries higher volatility and risk compared to more diversified or conservative allocations. The absence of bonds or alternative investments limits the portfolio's ability to hedge against stock market downturns.

Sectors Info

  • Technology
    25%
  • Financials
    17%
  • Health Care
    11%
  • Consumer Discretionary
    10%
  • Industrials
    10%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    3%
  • Real Estate
    3%
  • Utilities
    3%

Sector allocation is well-diversified across technology, financial services, healthcare, and consumer cyclicals, among others. This diversification helps mitigate sector-specific risks and capitalizes on growth across different areas of the economy. However, the significant weight in technology and financial services sectors may expose the portfolio to higher volatility reflective of these sectors' performance trends.

Regions Info

  • North America
    77%
  • Europe Developed
    10%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic allocation is predominantly in North America (77%), with developed Europe and emerging Asian markets also represented. This distribution suggests a strong reliance on the performance of the U.S. and developed markets, potentially limiting exposure to high-growth opportunities in emerging markets. Balancing more towards emerging and frontier markets could offer higher growth potential and further diversification benefits.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    30%
  • Mid-cap
    19%
  • Small-cap
    6%
  • Micro-cap
    2%

The portfolio's market capitalization breakdown—favoring mega and large-cap stocks—supports stability and lower volatility relative to portfolios with higher allocations to small and micro-cap stocks. This composition aligns with the portfolio's balanced risk profile but may limit exposure to the higher growth potential often found in smaller 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.

The portfolio's current allocation suggests it is positioned near the Efficient Frontier, indicating an optimized risk-return ratio based on historical data. However, continuous monitoring and potential rebalancing towards underrepresented asset classes or geographies could further enhance diversification and return potential without substantially increasing risk.

Dividends Info

  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.70%

The portfolio's dividend yield averages 1.70%, combining the higher yield from international equities with the lower yield from the total stock market. This income component contributes to total returns, offering a buffer in market downturns and a source of cash flow for reinvestment or income needs.

Ongoing product costs Info

  • 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%

With an overall expense ratio of 0.04%, the portfolio benefits from low costs, enhancing net returns over the long term. Keeping costs low is crucial in maximizing investment growth, especially in a low-yield environment.

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