Balanced and broadly diversified portfolio with a focus on global equities and low costs

Report created on Jun 11, 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 split evenly between two Vanguard ETFs, one targeting the total U.S. stock market and the other focusing on international stocks. This 50/50 allocation between domestic and international equities demonstrates a commitment to broad diversification. Such a structure is designed to capture the growth potential of the global market while mitigating the risk associated with overexposure to any single country or region. The simplicity of this approach, relying on just two ETFs, underscores an efficient strategy for achieving widespread market coverage.

Growth Info

Historically, this portfolio has delivered a Compound Annual Growth Rate (CAGR) of 10.47%, with a maximum drawdown of -34.41%. These figures highlight the portfolio's ability to generate substantial growth over time, despite significant market fluctuations. The days contributing to 90% of returns being limited to just 23.0 underscores the impact of major market movements on performance. This historical performance, compared to benchmarks, indicates a strong resilience and potential for recovery in volatile markets.

Projection Info

Using Monte Carlo simulations, which project future outcomes based on historical data, this portfolio shows a wide range of potential future performances. The 50th percentile outcome suggests a 247.7% increase, indicating robust growth potential. However, it's crucial to understand that such simulations carry limitations, primarily because they cannot predict unforeseen market shifts or global economic events. These projections offer a helpful, though not guaranteed, glimpse into the portfolio's potential under similar historical conditions.

Asset classes Info

  • Stocks
    98%
  • Cash
    2%

The allocation is overwhelmingly in stocks (98%), with a minimal cash reserve (2%). This high equity exposure aligns with the portfolio's balanced risk classification, aiming for growth while accepting moderate volatility. The absence of bonds or alternative investments might limit the portfolio's ability to hedge against stock market downturns, suggesting a review of risk tolerance and investment objectives might be warranted for those seeking a more conservative approach.

Sectors Info

  • Technology
    21%
  • Financials
    19%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    4%
  • Real Estate
    3%
  • Utilities
    3%

The sectoral distribution within this portfolio leans heavily towards Technology and Financial Services, making up 40% of the total investment. This concentration in high-growth sectors could enhance returns but also increases susceptibility to sector-specific downturns. The diversification across other sectors, like Industrials, Consumer Cyclicals, and Healthcare, helps mitigate this risk, providing a balanced exposure to different market cycles and economic conditions.

Regions Info

  • North America
    54%
  • Europe Developed
    20%
  • Asia Emerging
    8%
  • Japan
    8%
  • Asia Developed
    5%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographically, the portfolio is well-diversified, with over half allocated to North America and significant investments in developed Europe and emerging Asian markets. This distribution reflects a strategic approach to capturing growth in both stable and high-potential regions. The minimal exposure to Latin America and the absence of investments in Eastern Europe suggest potential areas for further diversification, especially for investors looking to tap into emerging market growth.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    30%
  • Mid-cap
    18%
  • Small-cap
    5%
  • Micro-cap
    1%

The market capitalization breakdown shows a strong preference for Mega and Big cap stocks, which comprise 73% of the portfolio. This bias towards larger companies may contribute to stability and reduced volatility, given their typically lower risk profiles compared to smaller companies. However, the relatively smaller allocation to Medium, Small, and Micro cap stocks could limit potential high-growth opportunities that these segments occasionally offer.

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.

Based on the Efficient Frontier concept, which aims to maximize returns for a given level of risk, this portfolio appears well-positioned. Its current assets and allocation suggest a favorable risk-return profile. However, investors should periodically review their allocations to ensure they remain aligned with their risk tolerance and financial goals. Adjustments may be necessary to maintain an optimal balance as market conditions evolve.

Dividends Info

  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 2.10%

The dividend yields from the two ETFs, averaging to a total yield of 2.10%, contribute to the portfolio's total return, providing a steady income stream in addition to potential capital gains. This yield is particularly relevant for investors seeking regular income from their investments, although the primary focus appears to be on growth through capital appreciation. The higher yield from the international ETF also highlights the income-generating potential of overseas investments.

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 portfolio benefits from exceptionally low costs, with a Total Expense Ratio (TER) of just 0.04%. This efficiency is crucial for long-term growth, as lower costs directly translate into higher net returns for the investor. Vanguard's reputation for low-cost investment options is well reflected here, underscoring the importance of cost-consciousness in portfolio construction.

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