A balanced and broadly diversified portfolio with a strong emphasis on stocks across major sectors

Report created on Jul 22, 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 predominantly invested in stocks, with a major allocation to U.S. equities via the Vanguard Total Stock Market Index Fund Admiral Shares, complemented by international exposure through the Vanguard Total International Stock Index Fund Admiral Shares. The inclusion of the Vanguard Small-Cap Index Fund Admiral Shares adds a focus on growth potential from smaller companies. This structure reflects a strategic balance between domestic and global markets, aiming to capture growth across a broad spectrum of economies and sectors.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 12.56%, with a maximum drawdown of -35.36%. This indicates a strong performance, albeit with significant volatility. The days contributing to 90% of returns being concentrated in just 28 days highlights the impact of short-term, high-gain periods on overall performance. Comparing this to benchmarks, it's important to recognize the role of market timing and the inherent risks in expecting future performance to mirror the past.

Projection Info

Monte Carlo simulations, which run numerous hypothetical scenarios to predict future outcomes, show a wide range of possible performances for this portfolio. With a median projection of a 281.7% increase and 972 out of 1,000 simulations predicting positive returns, the forward-looking outlook seems optimistic. However, the significant spread between the 5th and 67th percentiles underscores the uncertainty and risk involved.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily skewed towards stocks (99%), with a minimal cash reserve (1%). This allocation underscores a growth-oriented strategy but also highlights a higher risk profile due to the lack of diversification across asset classes like bonds or real estate, which can offer stability in volatile markets.

Sectors Info

  • Technology
    26%
  • Financials
    16%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Real Estate
    3%
  • Basic Materials
    3%
  • Utilities
    3%

Sectoral allocation is well-diversified, with significant investments in technology, financial services, and industrials, among others. This diversified sector exposure helps mitigate sector-specific risks and capitalizes on growth across different areas of the economy. However, the heavy weighting in technology, a sector known for its volatility, could increase the portfolio's sensitivity to market fluctuations.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is heavily weighted towards North America (81%), with smaller allocations across developed and emerging markets globally. This reflects a strong home bias, potentially limiting exposure to growth opportunities in faster-growing economies. Broadening the geographic distribution could enhance diversification and reduce regional risks.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    28%
  • Mid-cap
    20%
  • Small-cap
    11%
  • Micro-cap
    3%

The portfolio's market capitalization exposure is balanced across mega, big, and medium-sized companies, with a smaller focus on small and micro-cap stocks. This balance provides a mix of stability from large-cap companies and growth potential from smaller caps. However, the relatively lower allocation to small and micro-caps might limit exposure to high-growth opportunities.

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 to be positioned for a favorable risk-return balance based on its current assets. However, there's always room for optimization, especially in enhancing diversification across asset classes and geographies. Regularly reviewing and adjusting the allocation can help maintain an optimal risk-return profile as market conditions evolve.

Dividends Info

  • VANGUARD SMALL-CAP INDEX FUND ADMIRAL SHARES 1.00%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 2.10%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.90%
  • Weighted yield (per year) 1.15%

The portfolio's overall dividend yield stands at 1.15%, reflecting a modest contribution to total returns. While the focus appears to be on capital appreciation, dividends can offer a steady income stream and potential for reinvestment, contributing to compounding growth over time. Assessing opportunities to optimize dividend income without significantly altering the portfolio's risk profile could be beneficial.

Ongoing product costs Info

  • VANGUARD SMALL-CAP INDEX FUND ADMIRAL SHARES 0.05%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 0.09%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.04%
  • Weighted costs total (per year) 0.05%

With an average Total Expense Ratio (TER) of 0.05%, the portfolio benefits from low costs, supporting better net returns over the long term. Vanguard's reputation for low-cost funds aligns well with a strategy focused on long-term growth, where minimizing expenses is crucial for maximizing investment returns.

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