A broadly diversified stock focused portfolio with strong growth history and low overall ongoing costs

Report created on Nov 9, 2024

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 very straightforward: it’s 100% in stocks, mostly through a large US index fund, plus a smaller US active ETF and a modest slice of international stocks. For a “balanced” risk label, it’s actually quite growth-heavy, since there are no bonds or cash buffers. That matters because stocks can drop sharply together, which can feel uncomfortable in rough markets. The structure is clean and aligns well with common index-based benchmarks, which is a big plus. If smoother ride and smaller drawdowns are a priority, shifting a portion into defensive assets could better match a truly balanced risk profile over time.

Growth Info

Historically, this mix delivered a very strong compound annual growth rate (CAGR) of about 19.7%. CAGR is like your average speed on a road trip: it smooths out all the bumps into one yearly number. The worst peak‑to‑trough drop (max drawdown) of about -17.7% is actually mild for an all‑stock portfolio, and the return pattern looks better than typical broad benchmarks. Also, 90% of gains came in just 19 days, which shows how missing a few big days can hurt long‑term results. It’s important to remember that this great run may reflect an unusually strong period for markets and can’t be assumed going forward.

Projection Info

The Monte Carlo analysis ran 1,000 simulations based on historical behavior and came out with very high projected outcomes: a median (50th percentile) ending value above 1,100% of the starting amount, and even the 5th percentile over 380%. Monte Carlo is like running thousands of “what if” market paths using past volatility and returns. This shows a wide but mostly positive range of future possibilities. Still, it’s built on historical patterns; if future returns are lower or volatility spikes, real results could be quite different. Treat these numbers as rough guideposts, not promises, especially for planning retirement or big life goals.

Asset classes Info

  • Stocks
    100%

All of the investable money is in stocks, with 0% in bonds, cash, or other asset classes. That creates strong growth potential but also means the portfolio will fully ride stock market ups and downs. In many common benchmarks labeled “balanced,” bonds play a key role in cushioning declines and smoothing the ride. Here, the diversification is “broad” within equities but missing the stabilizing effect of different asset types. For someone wanting truly moderate risk, including some more defensive assets could reduce emotional stress during downturns while still keeping long‑term growth as the main focus.

Sectors Info

  • Technology
    31%
  • Financials
    15%
  • Consumer Discretionary
    11%
  • Industrials
    9%
  • Telecommunications
    9%
  • Health Care
    8%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector exposure is nicely spread: technology is the largest at 31%, followed by financials, consumer cyclicals, industrials, communication services, and healthcare. This looks very similar to major global equity benchmarks, which is a strong indicator that the mix is sensibly diversified and not making big sector bets. Tech being the biggest slice is normal today but does mean more sensitivity to things like interest rate changes and innovation cycles. This allocation is well‑balanced and aligns closely with global standards. Anyone especially worried about tech‑related swings could modestly tilt toward more defensive, slower‑moving parts of the market.

Regions Info

  • North America
    85%
  • Europe Developed
    6%
  • Japan
    3%
  • Asia Emerging
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, about 85% is in North America, with the rest sprinkled across developed Europe, Japan, developed and emerging Asia, Australasia, and a small piece in Africa/Middle East. That heavy US tilt is very common compared to standard benchmarks, especially for investors based in the USA, and it has been rewarded over the last decade. Still, it does leave outcomes heavily tied to one region’s economy, policy, and currency. The international slice helps, but it’s relatively small. Increasing the non‑US share a bit could further spread country‑specific risks without abandoning the familiar, large home‑market exposure.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    32%
  • Mid-cap
    20%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio leans heavily into the larger end of the market: around 42% in mega‑caps, 32% in big companies, with 20% in mid‑caps and only small slices in small and micro‑caps. This pattern closely matches major broad‑market benchmarks and is generally considered a solid core structure. Larger companies tend to be more stable and liquid, while smaller ones can be more volatile but offer higher growth potential. This balance is sensible and not extreme in either direction. If someone wants a bit more long‑term growth “kick,” a slightly higher allocation to mid and small companies could be considered, accepting bumpier volatility.

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.

Looking at risk versus return, the portfolio sits near the higher‑return, higher‑volatility end of an efficient frontier built from these existing funds. The “efficient frontier” is simply the set of mixes that give the most expected return for each level of risk using the same building blocks. Within just these three ETFs, adjusting the weights may slightly improve the risk‑return ratio, but efficiency here doesn’t mean lower drawdowns or better diversification across asset classes. For a more comfortable balance, adding less volatile holdings outside the current set would likely shift the curve toward smoother outcomes while keeping growth in view.

Dividends Info

  • American Century ETF Trust 2.00%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.40%

The total yield of about 1.4% is modest, which fits a growth‑oriented equity portfolio. The international exposure and the active ETF provide slightly higher yields, while the large US index is a bit lower. Dividends are the cash payouts from companies and can act like a “paycheck” from investments, though here they’re more of a secondary benefit than the main driver. For someone reinvesting distributions, this setup supports compounding over time. Investors seeking more current income might consider adding higher‑yielding components, understanding that chasing yield alone can bring extra risks and may reduce long‑term growth potential.

Ongoing product costs Info

  • American Century ETF Trust 0.26%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.07%

Ongoing costs are impressively low, with a total expense ratio around 0.07%. Fees are like a slow leak in a tire: small differences compound a lot over decades. The largest holding is extremely cheap, and even the highest‑fee ETF here is still reasonable by industry standards. This cost structure is a real strength and supports better long‑term performance relative to higher‑fee portfolios with similar strategies. Keeping this low‑cost mindset is key; regularly checking that any higher‑fee fund is truly adding value in terms of risk or return can help keep the overall fee drag minimal over time.

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