Balanced and highly diversified portfolio with a strong emphasis on global and growth stocks

Report created on Jul 21, 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 predominantly invested in equities, with a 60% allocation to a global stock ETF and a combined 30% in growth and value stock ETFs. The remaining 10% is allocated to bonds, providing a cushion against market volatility. The asset mix reflects a balanced approach, leaning towards growth but with an eye on risk management through diversification across sectors and geographies. The inclusion of both growth and value ETFs suggests a strategy that aims to capture returns across different market conditions.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 11.59%, with a maximum drawdown of -31.58%. These figures indicate strong performance, albeit with significant volatility, as evidenced by the substantial drawdown. The days contributing to 90% of returns being concentrated in just 28.0 days highlight the portfolio's reliance on short, sharp gains, which is typical for equity-heavy strategies. Comparing this performance against a balanced benchmark would provide further insight into its relative strength.

Projection Info

Forward projections, based on Monte Carlo simulations, show a wide range of outcomes, with the 50th percentile suggesting a potential 288.6% increase. While encouraging, it's important to remember that such simulations use historical data to predict future returns, which cannot guarantee future performance. The high count of simulations with positive returns underscores the portfolio's robustness, though investors should remain cautious of the inherent uncertainties in market movements.

Asset classes Info

  • Stocks
    89%
  • Bonds
    10%
  • Cash
    1%

With 89% of the portfolio in stocks and 10% in bonds, the asset class allocation underpins a strategy geared towards growth while using bonds to mitigate risk. This mix is appropriate for a balanced profile but leans towards a growth orientation, given the substantial equity weight. Investors should periodically reassess their asset allocation to ensure it aligns with their changing risk tolerance and financial goals.

Sectors Info

  • Technology
    24%
  • Financials
    15%
  • Industrials
    10%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

The sectoral allocation shows a heavy emphasis on technology and financial services, which are sectors known for their growth potential but also for their volatility. The spread across industrials, consumer cyclicals, and healthcare suggests an attempt to balance this with more stable, defensive investments. However, investors should be mindful of overexposure to any single sector, particularly in rapidly changing markets.

Regions Info

  • North America
    69%
  • Europe Developed
    9%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation with a 69% weighting in North America and diversified exposure across developed and emerging markets in Europe, Asia, and other regions, reflects a well-considered approach to global diversification. This geographic spread can help mitigate risks associated with regional economic downturns and capitalize on growth opportunities worldwide.

Market capitalization Info

  • Mega-cap
    40%
  • Large-cap
    29%
  • Mid-cap
    16%
  • No data
    10%
  • Small-cap
    3%

The portfolio's emphasis on mega and large-cap stocks, constituting 69% of the asset allocation, indicates a preference for established, stable companies, likely chosen for their lower volatility compared to smaller companies. The presence of medium and a small percentage of small-cap stocks introduces growth potential, albeit with increased risk. This blend supports the portfolio's balanced growth objective.

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 suggests it is positioned near the Efficient Frontier, indicating an optimized risk-return profile based on historical data. However, the Efficient Frontier changes over time with market conditions, so ongoing review and adjustment are crucial to maintaining this optimization. Diversification and cost-efficiency are strengths, but the investor should remain vigilant to shifts in market dynamics that could affect the portfolio's position relative to the Efficient Frontier.

Dividends Info

  • Fidelity® Total Bond ETF 4.60%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.50%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Vanguard Value Index Fund ETF Shares 2.20%
  • Weighted yield (per year) 1.80%

The portfolio's overall dividend yield of 1.80% contributes to its income generation, complementing capital gains for total return. The higher yield from the bond ETF provides a steady income stream, which is particularly valuable during market downturns or for investors with income needs. Regular evaluation of dividend-yielding investments is advisable to ensure they continue to meet income objectives without compromising growth potential.

Ongoing product costs Info

  • Fidelity® Total Bond ETF 0.36%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.10%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Vanguard Value Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.10%

With an average Total Expense Ratio (TER) of 0.10%, the portfolio is cost-efficient, minimizing the drag on returns over time. The low costs are commendable, especially given the broad diversification and potential for growth. Investors should continue to monitor fees to ensure they remain competitive, as even small differences can have a significant impact over the long term.

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