Balanced and highly diversified portfolio with a strong focus on retirement and growth

Report created on Sep 25, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

Your portfolio is structured around a core of target retirement and balanced funds, complemented by specific equity exposures. The largest holding, the State Street Target Retirement 2035 Fund, indicates a planning horizon aligning with a retirement date around 2035. This is supplemented by the American Balanced Fund and the Invesco American Franchise Fund, adding diversification across asset classes and sectors. The Vanguard ETFs introduce direct stock market exposure, both domestically and internationally, rounding out the portfolio's diversification.

Growth Info

Historically, your portfolio has achieved a Compound Annual Growth Rate (CAGR) of 10.68%, with a maximum drawdown of -27.50%. This performance is indicative of a balanced risk-return profile, suitable for investors with a moderate risk tolerance. The days contributing most to returns highlight the portfolio's potential for significant short-term gains amidst overall steady growth. Comparing these metrics to benchmarks would further contextualize performance, especially considering the balanced nature of the portfolio.

Projection Info

Monte Carlo simulations, utilizing 1,000 iterations, project a wide range of potential outcomes, emphasizing the uncertainty inherent in investing. The median outcome suggests a significant potential for growth (319.9% increase), with the majority of simulations yielding positive returns. This analysis, while based on historical data, offers a lens into the future, underscoring the importance of maintaining a diversified and balanced approach to mitigate risks.

Asset classes Info

  • Stocks
    74%
  • Bonds
    23%
  • Cash
    2%
  • Other
    1%

Your portfolio's asset allocation—74% stocks, 23% bonds, and a small percentage in cash and other assets—strikes a balance between growth potential and risk mitigation. This allocation aligns with a moderate risk profile, leveraging stocks for growth while using bonds to cushion against market volatility. Adjusting the bond-to-stock ratio could further align the portfolio with your risk tolerance and investment horizon.

Sectors Info

  • Technology
    27%
  • Financials
    16%
  • Industrials
    12%
  • Telecommunications
    10%
  • Consumer Discretionary
    9%
  • Health Care
    9%
  • Consumer Staples
    6%
  • Basic Materials
    3%
  • Energy
    3%
  • Real Estate
    2%
  • Utilities
    2%
  • Consumer Discretionary
    1%

The sectoral allocation reveals a heavy emphasis on technology, financial services, and industrials, reflecting a growth-oriented strategy. However, this concentration also exposes the portfolio to sector-specific risks. Diversifying into underrepresented sectors, like utilities or real estate, could offer additional stability and income through dividends, balancing the portfolio's growth prospects with defensive characteristics.

Regions Info

  • North America
    72%
  • Europe Developed
    12%
  • Japan
    4%
  • Asia Developed
    4%
  • Asia Emerging
    4%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

With 72% of assets in North America and significant exposures to developed Europe and Japan, your portfolio is well-positioned to capture growth in major economies. However, the relatively low allocation to emerging markets may limit exposure to high-growth regions. Increasing investments in these areas could enhance returns, albeit with higher risk.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    23%
  • Mid-cap
    13%
  • Small-cap
    3%
  • Micro-cap
    1%

The focus on mega and large-cap stocks (57% combined) supports stability and liquidity in your portfolio. Medium, small, and micro-cap stocks, though less represented, offer growth potential and diversification benefits. A slight adjustment to include more small and medium-cap stocks could enhance returns without significantly increasing risk, given the balanced nature of the portfolio.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    American Balanced Fund Class A Sh
    High correlation

The high correlation between the Vanguard Total Stock Market Index Fund ETF Shares and the American Balanced Fund Class A Sh suggests redundancy, potentially limiting diversification benefits. Identifying and reducing overlapping holdings can enhance the portfolio's efficiency, ensuring each investment contributes uniquely to your objectives.

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 structure suggests room for optimization, particularly by addressing asset overlap and fine-tuning the risk-return profile. The potential for a more efficient portfolio, maintaining the same level of risk but aiming for a slightly lower expected return of 10.20%, indicates that with strategic adjustments, your portfolio could achieve better alignment with the Efficient Frontier. This involves balancing diversification and risk management to enhance overall performance.

Dividends Info

  • American Balanced Fund Class A Sh 6.90%
  • STATE STREET TARGET RETIREMENT 2035 FUND CLASS I 4.70%
  • INVESCO AMERICAN FRANCHISE FUND CLASS A 3.30%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 4.61%

The portfolio's average dividend yield of 4.61% contributes to total returns, providing a steady income stream. This yield is particularly beneficial in a balanced portfolio, offering a buffer during market downturns. Reviewing and potentially increasing allocations to higher-yielding assets could further enhance income without disproportionately increasing risk.

Ongoing product costs Info

  • American Balanced Fund Class A Sh 0.56%
  • STATE STREET TARGET RETIREMENT 2035 FUND CLASS I 0.29%
  • INVESCO AMERICAN FRANCHISE FUND CLASS A 0.96%
  • 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) 0.40%

With a total expense ratio (TER) of 0.40%, your portfolio is cost-efficient, maximizing the potential for net returns. The individual fund costs range from 0.03% to 0.96%, highlighting the importance of monitoring fees in relation to performance and value provided. Periodic reviews can ensure costs remain aligned with industry benchmarks and investment objectives.

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