Balanced portfolio with a strong focus on stocks and minimal bond exposure

Report created on May 29, 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 is heavily weighted towards equities, with 99% in stock ETFs and a minimal 1% in bond ETFs. This composition suggests a growth-oriented strategy, leveraging the broad market exposure of the Vanguard Total Stock Market and International Stock Index Funds. The allocation reflects a balanced risk profile but leans towards growth due to the significant stock allocation.

Growth Info

Historical performance indicates a Compound Annual Growth Rate (CAGR) of 11.85%, with a maximum drawdown of -34.51%. These figures highlight the portfolio's ability to generate substantial returns, albeit with notable volatility. The days contributing most to these returns were relatively few, underscoring the importance of staying invested through market cycles.

Projection Info

Monte Carlo simulations, using 1,000 iterations, project a median return of 151.4% over the simulation period. This method, while based on historical data, offers a range of possible outcomes to help gauge potential future performance. However, it's essential to remember that past performance is not indicative of future results.

Asset classes Info

  • Stocks
    98%
  • Bonds
    1%
  • Cash
    1%

The portfolio's asset class distribution is heavily skewed towards stocks, with a 98% allocation. This high exposure to equities is typical for growth-oriented investors but comes with higher volatility. The minimal bond allocation provides little in the way of volatility dampening, which could be a concern during market downturns.

Sectors Info

  • Technology
    26%
  • Financials
    16%
  • Health Care
    11%
  • Consumer Discretionary
    10%
  • Industrials
    10%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    3%
  • Real Estate
    3%
  • Utilities
    3%

Sector allocation is diverse, with technology, financial services, and healthcare being the top three sectors. This sector spread is beneficial for risk management, though the heavy weighting in technology could expose the portfolio to sector-specific risks, such as regulatory changes or market sentiment shifts.

Regions Info

  • North America
    80%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographic allocation is predominantly in North America (80%), with modest exposure to developed Europe and emerging Asian markets. This geographic distribution suggests a home bias, which might limit exposure to potential growth in emerging markets and diversification benefits.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    30%
  • Mid-cap
    19%
  • Small-cap
    6%
  • Micro-cap
    2%

The portfolio's market capitalization spread shows a preference for larger companies, with 72% in mega and big-cap stocks. This bias towards larger firms may offer stability but could also limit growth potential compared to more aggressive allocations that include a higher percentage of small and micro-cap stocks.

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, the portfolio could potentially enhance its risk-return profile through slight adjustments. While the current allocation is growth-focused, incorporating a broader range of asset classes or adjusting the bond-stock mix could provide similar returns with reduced volatility.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.64%

The dividend yield of the portfolio stands at 1.64%, contributed by all three ETFs. While not the primary focus, these dividends can provide a steady income stream and help mitigate some volatility. The bond ETF, despite its small allocation, offers a higher yield, highlighting the potential benefits of a greater fixed income presence.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • 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) 0.03%

The portfolio benefits from low costs, with a Total Expense Ratio (TER) averaging 0.03%. This efficient cost structure supports better long-term performance by minimizing the drag on returns. Keeping costs low is crucial for maximizing investment growth, especially in a low-yield environment.

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