Balanced portfolio with a strong foundation in diversified ETFs and low costs

Report created on Aug 3, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is structured around a core of ETFs that span major asset classes and geographic regions, showing a strategic balance between stocks (79%) and bonds (20%), with a minimal cash holding (1%). The substantial allocation to the SPDR® Portfolio S&P 500 ETF underscores a strong focus on US equities, complemented by significant positions in international, emerging markets, and short-term corporate bonds. This composition suggests a diversified approach, aiming to mitigate risk while capturing growth from various sources.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 9.73%, with a maximum drawdown of -29.30%. A noteworthy aspect is the concentration of returns in a relatively small number of days, indicating that timing the market would be challenging and potentially detrimental. This performance, when juxtaposed with benchmarks, suggests resilience in diverse market conditions, underlining the benefit of maintaining a balanced and diversified investment stance over the long term.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, indicate a wide range of possible outcomes for this portfolio. With 942 out of 1,000 simulations showing positive returns, there's a strong likelihood of favorable outcomes. However, the significant variance between the 5th and 67th percentiles highlights the inherent uncertainties in market movements. These projections underscore the importance of maintaining a diversified portfolio to navigate through volatile markets effectively.

Asset classes Info

  • Stocks
    79%
  • Bonds
    20%
  • Cash
    1%

The asset allocation—predominantly in stocks and bonds—aligns well with the portfolio's balanced risk profile. Stocks offer growth potential, while bonds provide stability and income, a mix that is crucial for achieving long-term financial goals. The minimal cash holding suggests an active investment approach, maximizing market exposure. Comparing this allocation to standard benchmarks, it appears well-positioned to offer a blend of growth and income, suitable for a balanced investor.

Sectors Info

  • Technology
    21%
  • Financials
    14%
  • Consumer Discretionary
    9%
  • Industrials
    8%
  • Telecommunications
    7%
  • Health Care
    6%
  • Consumer Staples
    4%
  • Basic Materials
    3%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation reveals a tech-heavy emphasis, followed by financial services and consumer cyclicals. This sectoral distribution is reflective of the current market landscape, where technology plays a pivotal role in driving economic growth. However, the concentration in tech also exposes the portfolio to sector-specific risks, such as regulatory changes or market sentiment shifts. Diversifying across more sectors could mitigate these risks while potentially tapping into other growth areas.

Regions Info

  • North America
    46%
  • Asia Emerging
    12%
  • Europe Developed
    8%
  • Asia Developed
    5%
  • Japan
    3%
  • Africa/Middle East
    2%
  • Latin America
    2%
  • Australasia
    1%

Geographic diversification is evident, with almost half of the assets in North America and significant exposures to Asia Emerging and Europe Developed regions. This global spread helps mitigate the risk of regional downturns and capitalizes on growth across different economies. However, the portfolio may benefit from increased exposure to underrepresented areas like Europe Emerging and Australasia to further enhance global diversification.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    26%
  • Mid-cap
    14%
  • Small-cap
    2%

The portfolio's exposure across market capitalizations, with a tilt towards mega and big-cap stocks, suggests a preference for stability and lower volatility associated with larger, established companies. While this may offer a degree of safety, incorporating a higher allocation to medium and small-cap stocks could provide additional growth opportunities and further diversification benefits.

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 appears near the Efficient Frontier, suggesting an optimal risk-return trade-off based on historical data. However, continuous monitoring and adjustments are necessary to maintain this efficiency, especially as market conditions and investment goals evolve. Exploring alternative allocations or additional asset classes could further refine this balance, potentially leading to improved outcomes.

Dividends Info

  • SPDR® Portfolio S&P 500 ETF 1.20%
  • Vanguard Short-Term Corporate Bond Index Fund ETF Shares 3.80%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.80%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 2.30%

The portfolio's average dividend yield of 2.30% contributes to its total return, offering a steady income stream in addition to potential capital gains. This yield, derived from a mix of equity and bond ETFs, underscores the portfolio's balanced approach, providing both growth potential and income. For investors prioritizing income, further optimizing the dividend yield without compromising growth or increasing risk could be beneficial.

Ongoing product costs Info

  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Vanguard Short-Term Corporate Bond Index Fund ETF Shares 0.04%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

With an average Total Expense Ratio (TER) of 0.04%, the portfolio is efficiently managed, ensuring that costs do not significantly erode returns. This low-cost approach is commendable, as it aligns with best practices in investment management, where minimizing costs is crucial for enhancing long-term performance.

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