A cautious yet highly diversified portfolio with a strong bond foundation and global equity exposure

Report created on Jul 28, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is structured with a cautious approach, allocating a significant portion to bonds (30%) and a diversified mix of equities (69%), including domestic, international, and emerging markets. The largest holding is in a domestic equity index fund (41%), followed by a substantial allocation to a total bond market fund (30%). International equities and emerging markets make up 20% of the portfolio, providing global exposure. This composition suggests a balanced approach, aiming to mitigate risk through bonds while seeking growth through equities.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 9.14%, with a maximum drawdown of -26.28%, indicating resilience during market downturns. The days contributing to 90% of returns number just 31, highlighting the impact of significant market movements on performance. Compared to a benchmark of a similarly cautious profile, this performance suggests a well-managed risk-return balance, capturing growth opportunities within a risk-managed framework.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, show a wide range of potential performances, with the median simulation suggesting a 177.5% return. However, it's important to note that these projections are hypothetical and subject to the limitations of past data. They offer a useful tool for understanding potential volatility and outcomes but cannot guarantee future performance.

Asset classes Info

  • Stocks
    69%
  • Bonds
    30%
  • Cash
    1%

The allocation across asset classes—69% stocks and 30% bonds—reflects a balanced approach, leaning towards a more cautious stance given the significant bond holding. This mix is designed to provide growth potential through equities while using bonds to buffer against market volatility. The small cash position (1%) offers liquidity for opportunities or rebalancing.

Sectors Info

  • Technology
    17%
  • Financials
    12%
  • Industrials
    8%
  • Health Care
    7%
  • Consumer Discretionary
    7%
  • Telecommunications
    6%
  • Consumer Staples
    4%
  • Energy
    2%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation is broadly diversified, with technology (17%) and financial services (12%) being the most prominent. This sector spread is in line with global market trends, where technology continues to play a significant role in growth prospects. However, the concentration in these sectors may introduce sector-specific risks, such as regulatory changes or economic downturns affecting financial services.

Regions Info

  • North America
    50%
  • No data
    30%
  • Europe Developed
    11%
  • Japan
    4%
  • Asia Emerging
    2%
  • Asia Developed
    1%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is heavily weighted towards North America (50%), with a diversified but smaller allocation to developed Europe (11%), Japan (4%), and emerging markets (2%). This distribution provides a balance between the stability of developed markets and the growth potential of emerging markets, though the limited exposure to the latter may restrict potential high-growth opportunities.

Market capitalization Info

  • Mega-cap
    29%
  • Large-cap
    21%
  • Mid-cap
    12%
  • Small-cap
    5%
  • Micro-cap
    2%

The market capitalization allocation shows a preference for larger companies (Mega 29%, Big 21%), which tend to be more stable and less volatile than smaller companies. Medium, small, and micro caps together make up 19%, offering some exposure to the higher growth potential of smaller companies, albeit with increased 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.

Based on the Efficient Frontier analysis, the portfolio appears well-optimized for its risk profile, balancing the trade-off between risk and return effectively. While adjustments could potentially enhance returns or reduce volatility, the current allocation aligns closely with the portfolio's cautious risk classification. Regular reviews can ensure it remains aligned with changing market conditions and investment goals.

Dividends Info

  • TIAA-CREF INTERNATIONAL EQUITY INDEX FUND INSTITUTIONAL CLASS 2.60%
  • Vanguard Total Bond Market Index Fund Institutional Shares 3.50%
  • VANGUARD EMERGING MARKETS STOCK INDEX FUND INSTITUTIONAL SHARES 2.40%
  • VANGUARD EXTENDED MARKET INDEX FUND INSTITUTIONAL SHARES 0.80%
  • VANGUARD INSTITUTIONAL INDEX FUND INSTITUTIONAL PLUS SHARES 0.90%
  • Weighted yield (per year) 2.00%

The overall dividend yield of the portfolio stands at 2.00%, with the bond allocation contributing a higher yield (3.50%) compared to equities. This yield supports the portfolio's income generation, contributing to total return and offering a buffer in market downturns. Regular review of dividend-yielding investments is advisable to ensure they continue to meet income and growth objectives.

Ongoing product costs Info

  • TIAA-CREF INTERNATIONAL EQUITY INDEX FUND INSTITUTIONAL CLASS 0.05%
  • Vanguard Total Bond Market Index Fund Institutional Shares 0.02%
  • VANGUARD EMERGING MARKETS STOCK INDEX FUND INSTITUTIONAL SHARES 0.09%
  • VANGUARD EXTENDED MARKET INDEX FUND INSTITUTIONAL SHARES 0.05%
  • VANGUARD INSTITUTIONAL INDEX FUND INSTITUTIONAL PLUS SHARES 0.02%
  • Weighted costs total (per year) 0.03%

The total expense ratio (TER) of 0.03% is impressively low, maximizing the return potential by minimizing costs. This efficient cost structure is a significant advantage, as lower costs directly translate to higher net returns over the long term. Continuously monitoring and managing investment costs remains crucial for maintaining this efficiency.

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