A balanced and broadly diversified portfolio with a global stock market focus and minimal costs

Report created on Sep 25, 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 splits evenly between the Vanguard Total Stock Market Index Fund ETF Shares and the Vanguard Total International Stock Index Fund ETF Shares, showcasing a balanced approach with a 50-50 allocation to U.S. and international stocks. This structure provides broad market exposure, capturing growth across both developed and emerging markets. The simplicity of this two-fund strategy underscores its appeal for investors seeking diversified exposure without the complexity of managing multiple assets. However, the lack of asset classes beyond stocks introduces a higher volatility level, which may not suit all risk appetites.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 12.62% and a maximum drawdown of -34.44%, the portfolio's historical performance illustrates its resilience and growth potential. The days contributing most significantly to returns highlight the market's unpredictable nature, emphasizing the importance of long-term investment. Despite the inherent market risks, the portfolio's ability to recover and grow over time is evident. Comparing this performance to benchmarks can provide further context, helping to gauge its relative success in capturing market returns.

Projection Info

Monte Carlo simulations project a wide range of potential outcomes, from a 5th percentile growth of 64.1% to a 67th percentile growth of 537.3%, indicating significant upside potential. While these projections offer valuable insights, they are based on historical data, which may not predict future market conditions accurately. Investors should consider these projections as one of many tools in making informed decisions, keeping in mind the inherent uncertainty of market performance.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's allocation is nearly entirely in stocks, with a minimal cash position. This high equity exposure aligns with the portfolio's growth-oriented strategy but also increases its susceptibility to market volatility. Diversifying across different asset classes, such as bonds or real estate, could provide additional stability, especially during stock market downturns. However, for investors focused on long-term growth, this equity-centric approach may be appropriate, assuming they can tolerate the associated risk.

Sectors Info

  • Technology
    23%
  • Financials
    18%
  • Industrials
    13%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Basic Materials
    4%
  • Energy
    4%
  • Utilities
    3%
  • Real Estate
    3%

Sector allocation spans technology, financial services, industrials, and consumer cyclicals, among others, reflecting a well-rounded exposure to various economic segments. The heavy weighting in technology and financial services is consistent with global market trends, but it also introduces sector-specific risks. Diversifying across sectors is crucial for mitigating these risks, and this portfolio demonstrates a balanced approach, though investors should remain vigilant about overexposure to any single sector.

Regions Info

  • North America
    54%
  • Europe Developed
    19%
  • Asia Emerging
    8%
  • Japan
    8%
  • Asia Developed
    6%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographic distribution covers North America, Europe, and emerging markets in Asia and Latin America, ensuring global diversification. This broad geographic exposure reduces the portfolio's vulnerability to region-specific economic downturns and capitalizes on growth opportunities worldwide. However, the dominant North American allocation may reflect home bias, potentially limiting exposure to faster-growing markets abroad. Balancing geographic exposure can help capture global growth while managing regional risks.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    31%
  • Mid-cap
    18%
  • Small-cap
    5%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown—favoring mega and big caps—suggests a conservative tilt towards larger, more established companies. This strategy can offer stability and resilience during market fluctuations but may miss out on the higher growth potential of smaller firms. Incorporating a broader mix of market caps could enhance return potential while maintaining an acceptable level of 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 may already be optimized for a balance between risk and return, given its current assets. However, incorporating different asset classes or adjusting the allocation could potentially offer a better risk-return trade-off. It's important to recognize that "optimization" is based on historical data, and future market conditions may diverge. Regularly reviewing and adjusting the portfolio in response to changing market dynamics and personal financial goals is key to maintaining optimal performance.

Dividends Info

  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.95%

With a total dividend yield of 1.95%, the portfolio offers a modest income component alongside its growth potential. The higher yield from the international fund suggests a beneficial diversification impact, contributing to the portfolio's total returns. While dividends are not the primary focus of this growth-oriented strategy, they can provide a steady income stream and help mitigate volatility through reinvestment or as a cushion during market dips.

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%

The portfolio benefits from exceptionally low costs, with a total expense ratio (TER) of just 0.04%. This efficiency is crucial for long-term growth, as lower costs directly translate to higher net returns for investors. The choice of low-cost Vanguard ETFs exemplifies a cost-conscious strategy that can significantly impact wealth accumulation over time, showcasing the importance of cost management in investment selection.

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