Balanced and broadly diversified portfolio with low costs and a healthy dividend yield

Report created on Jul 18, 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 is structured around two main ETFs, focusing on total stock market exposure in both the U.S. and international markets. With 62% invested in the Vanguard Total Stock Market Index Fund ETF Shares and 38% in the Vanguard Total International Stock Index Fund ETF Shares, it provides a broad diversification across multiple sectors and geographies. This composition aligns with a balanced risk profile, aiming to capture growth opportunities worldwide while mitigating risks through diversification.

Growth Info

The historical performance of this portfolio, with a Compound Annual Growth Rate (CAGR) of 11.49% and a maximum drawdown of -34.55%, demonstrates resilience and potential for growth. The days contributing most to returns indicate that significant gains can occur in short periods, highlighting the importance of staying invested over the long term. Comparing this to benchmark performances can provide further insight into its relative strength.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, gives us a range of possible outcomes. While past performance is not indicative of future results, the simulations suggest a strong likelihood of positive returns. This method helps in understanding potential risks and rewards, though it's crucial to remember that these projections are hypothetical.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily weighted towards stocks (99%), with a minimal cash holding (1%). This allocation is typical for growth-oriented investors seeking higher returns, albeit with higher volatility. Stocks have historically outperformed other asset classes over the long term, making this a suitable approach for those with a balanced risk tolerance and a longer investment horizon.

Sectors Info

  • Technology
    24%
  • Financials
    18%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    4%
  • Real Estate
    3%
  • Utilities
    3%

Sectoral allocation is diverse, with technology and financial services having the most significant weightings. This reflects the current global market trends, where these sectors dominate. However, having a quarter of the portfolio in technology can lead to higher volatility, given the sector's rapid growth and occasional sharp corrections. Balancing across sectors can mitigate sector-specific risks.

Regions Info

  • North America
    65%
  • Europe Developed
    15%
  • Asia Emerging
    6%
  • Japan
    6%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic distribution shows a strong emphasis on North America and developed Europe, with smaller exposures to emerging markets and Asia. This allocation benefits from the stability of developed markets but may miss out on the higher growth potential of emerging markets. Adjusting this balance could enhance growth prospects and diversification.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    31%
  • Mid-cap
    18%
  • Small-cap
    5%
  • Micro-cap
    1%

The portfolio's market capitalization focus is on mega and big-cap stocks, which tend to be more stable and less volatile than smaller companies. This is appropriate for a balanced portfolio aiming for steady growth with controlled risk. However, incorporating a modest allocation to small and micro-caps could introduce higher growth potential, albeit with increased 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 appears well-optimized for a balanced risk-return profile. Adjustments could be made to enhance diversification or reduce volatility further, but any changes should be carefully weighed against the investor's goals and risk tolerance. It's a delicate balance between seeking higher returns and managing risk exposure.

Dividends Info

  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.81%

The dividend yields offered by the two ETFs contribute to the portfolio's total income, enhancing returns especially in volatile or bear markets. The higher yield from the international ETF also reflects the generally higher dividend payouts found in some overseas markets. Reinvesting these dividends can significantly impact compounding and overall return.

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 total expense ratio (TER) of 0.04% is impressively low, maximizing the investor's return potential over time. Lower costs are crucial for long-term investment success, as they compound and can significantly impact net returns. This portfolio benefits from Vanguard's reputation for low-cost, high-quality funds.

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