Balanced and broadly diversified portfolio leaning towards global stock exposure with an emphasis on value

Report created on Jul 11, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio composition is well-diversified across major global markets, with a notable emphasis on stocks, comprising 99% of the portfolio. This allocation includes a significant portion in the Vanguard Total Stock Market Index Fund ETF Shares and the Vanguard Total International Stock Index Fund ETF Shares, which together make up 75% of the portfolio. The inclusion of Avantis® ETFs focusing on U.S. and international small-cap value stocks, as well as emerging markets, suggests a strategic tilt towards value investing. This setup aims to capture growth across a broad spectrum of market conditions and geographies, while the small allocation to cash provides minimal liquidity.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 10.09%, with a maximum drawdown of -25.23%. While the drawdown indicates a level of risk, the overall performance is commendable, especially considering the days contributing most to returns. This historical performance, while a good indicator of past success, should be viewed with the understanding that past performance is not necessarily indicative of future results. However, the diversified nature and strategic asset allocation have likely contributed to this steady growth.

Projection Info

Monte Carlo simulations, which run numerous scenarios to forecast potential future outcomes, suggest a wide range of possibilities for this portfolio. With a median projected increase of 206.5%, and 93.6% of simulations showing positive returns, the forward-looking outlook appears optimistic. However, it's important to remember that these projections are based on historical data and assumptions, which cannot perfectly predict future market movements. Such simulations are valuable for risk assessment and planning but should not be the sole basis for investment decisions.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The almost exclusive allocation to stocks within the portfolio underscores a growth-oriented strategy, albeit with a balanced risk profile given its broad diversification across geographies and sectors. This heavy stock concentration enhances potential for higher returns compared to more conservative allocations but also increases volatility and risk. Investors should ensure this aligns with their risk tolerance and investment horizon. The minimal cash holding provides liquidity, albeit very limited, which could be strategic for taking advantage of market opportunities.

Sectors Info

  • Financials
    20%
  • Technology
    19%
  • Industrials
    13%
  • Consumer Discretionary
    12%
  • Health Care
    8%
  • Telecommunications
    6%
  • Consumer Staples
    6%
  • Energy
    6%
  • Basic Materials
    5%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation showcases a well-rounded exposure with financial services and technology leading the pack, followed by industrials and consumer cyclicals. This sector spread is indicative of a balanced approach, aiming to capitalize on growth sectors while also maintaining positions in more stable, defensive sectors like healthcare and consumer defensive. The portfolio's sector composition matches benchmark data, which is a strong indicator of diversification and adherence to a balanced investment strategy.

Regions Info

  • North America
    62%
  • Europe Developed
    14%
  • Asia Emerging
    7%
  • Japan
    6%
  • Asia Developed
    5%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographic allocation is heavily weighted towards North America, with significant exposures to developed Europe and emerging Asian markets. This distribution reflects a global diversification strategy, aiming to mitigate regional risks and capitalize on growth opportunities worldwide. However, the portfolio's underexposure to Latin America and Europe Emerging markets suggests potential areas for further diversification, which could help in spreading risk and capturing growth in less represented regions.

Market capitalization Info

  • Mega-cap
    33%
  • Large-cap
    25%
  • Mid-cap
    18%
  • Small-cap
    13%
  • Micro-cap
    9%

The market capitalization breakdown shows a diversified exposure across mega to micro-cap stocks, with a tilt towards larger companies. This blend of market caps is strategic, balancing the stability and lower risk of mega and big caps with the high-growth potential of small and micro-cap stocks. Such diversification is crucial for mitigating volatility and enhancing return potential over the long term.

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 appears well-optimized for a balanced risk-return profile, based on the Efficient Frontier concept. This optimization suggests that the current asset allocation is near the optimal balance of risk and return, given the historical performance and correlation of the included assets. However, investors should regularly review their portfolio to ensure it continues to align with their evolving risk tolerance, investment goals, and market conditions. Optimization is an ongoing process, and what is efficient today may need adjustment in the future.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.80%
  • Avantis® Emerging Markets Value ETF 4.00%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 2.02%

The dividend yields across the ETFs provide an additional income stream, contributing to the portfolio's total return. With an overall yield of 2.02%, the portfolio strikes a balance between growth and income. This is particularly beneficial for investors seeking regular income or those looking to reinvest dividends to compound growth. The varying yields also reflect the strategic allocation towards both high-growth potential and value-oriented investments.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 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) 0.10%

The Total Expense Ratio (TER) of 0.10% is impressively low, supporting better long-term performance by minimizing the drag on returns. This cost efficiency is particularly noteworthy given the portfolio's broad diversification and international exposure, which often come with higher fees. Lower costs are a crucial factor in enhancing net returns, especially in a diversified portfolio where the compounding effect can significantly impact long-term growth.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey