A balanced portfolio with a strong lean towards S&P 500 ETF and minimal bond exposure

Report created on Jul 22, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

The portfolio is heavily weighted towards the Vanguard S&P 500 ETF, comprising 90% of the allocation, with the remaining 10% in the Vanguard Total Bond Market Index Fund ETF Shares. This composition suggests a strategy that leans heavily towards equity exposure while maintaining a minimal bond allocation for diversification. The heavy reliance on a single ETF tied to the S&P 500 indicates a strong belief in the long-term performance of large-cap U.S. equities.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 13.30%, with a maximum drawdown of -31.77%. These figures suggest robust growth potential tempered by significant volatility, as evidenced by the substantial drawdown. The days contributing to 90% of returns being concentrated in just 32.0 days highlight the portfolio's susceptibility to short-term market movements and the importance of timing in investment decisions.

Projection Info

The Monte Carlo simulation, using 1,000 iterations, forecasts a wide range of outcomes with a median increase of 182.8% and a 5th percentile at a modest 24.6% gain. This variance underscores the inherent uncertainties in projecting stock market performance, emphasizing that while the portfolio has a high potential for growth, it also faces significant risks.

Asset classes Info

  • Stocks
    90%
  • Bonds
    10%

The asset allocation, with 90% in stocks and 10% in bonds, positions the portfolio for growth but with limited downside protection. This allocation reflects a balanced risk profile but leans towards a more aggressive stance given the substantial equity exposure. It suggests a preference for capital appreciation over income or stability, which is further supported by the absence of cash or other asset classes.

Sectors Info

  • Technology
    30%
  • Financials
    12%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Telecommunications
    9%
  • Industrials
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    2%

Sector allocation within the S&P 500 ETF reflects a diversified yet technology-heavy portfolio, mirroring the current composition of the broader market. The emphasis on technology, financial services, and consumer cyclicals indicates a tilt towards sectors that typically exhibit higher volatility but also offer the potential for significant growth. This sectoral distribution aligns with the portfolio's overall growth-oriented strategy.

Regions Info

  • North America
    90%

The geographic allocation is overwhelmingly North American (90%), with no exposure to developed Europe or Asia. This concentration in a single region, while reducing complexity, may also limit opportunities for geographic diversification and exposure to global growth trends. It suggests a strong home bias and a confidence in the U.S. market's performance relative to other regions.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    31%
  • Mid-cap
    16%
  • Small-cap
    1%

The market capitalization breakdown shows a preference for mega and big-cap stocks, which comprise 73% of the portfolio. This allocation is consistent with a strategy that favors stability and established companies over the potentially higher growth (but also higher risk) of smaller firms. However, the limited exposure to small-cap stocks may restrict the portfolio's overall growth potential.

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 might already be optimized for its current asset allocation between the S&P 500 and bond ETFs, aiming for the best possible risk-return ratio given its constituents. However, the heavy reliance on a single equity ETF suggests room for further diversification to achieve a more efficient risk-adjusted return profile.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.46%

The dividend yields from the Vanguard Total Bond Market Index Fund ETF Shares (3.80%) and the Vanguard S&P 500 ETF (1.20%) contribute to a total portfolio yield of 1.46%. This yield, while modest, provides a steady income stream and a cushion against market volatility, aligning with the portfolio's balanced risk profile.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.03%

With an impressively low total expense ratio (TER) of 0.03%, the portfolio benefits from minimal costs, maximizing the potential for net returns. This cost efficiency is a significant advantage, particularly over the long term, as lower expenses directly translate to higher investment growth.

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