Balanced portfolio with a strong focus on stocks and geographic diversity

Report created on Jul 31, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio predominantly consists of equity ETFs, with a significant 75% allocated to the Vanguard Total Stock Market Index Fund ETF Shares, 20% to the Vanguard Total International Stock Market Index Fund ETF Shares, and a minimal 5% in the Vanguard Total Bond Market Index Fund ETF Shares. Such a composition leans heavily towards stocks, providing a balanced mix of domestic and international exposure, with a minor allocation towards bonds to offer some level of income and risk mitigation.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 12.19% and a maximum drawdown of -33.56%, the portfolio demonstrates strong growth potential balanced with moderate risk. The days contributing to 90% of returns highlight the impact of significant market movements on performance. Comparing these figures to benchmarks can help understand the resilience of this portfolio during market volatility.

Projection Info

Monte Carlo simulations, which run numerous potential future scenarios based on historical data, show a wide range of outcomes for this portfolio. With a 50th percentile forecast suggesting a 158.2% return, the projections indicate solid growth potential. However, the range from the 5th to the 67th percentile underscores the inherent uncertainty in market performance, emphasizing the need for regular portfolio reviews.

Asset classes Info

  • Stocks
    94%
  • Bonds
    5%
  • Cash
    1%

The asset class distribution, with 94% in stocks and 5% in bonds, aligns with a growth-oriented strategy but carries higher volatility. This allocation is suitable for investors with a medium to long-term horizon, capable of weathering short-term market fluctuations for the sake of higher potential returns. Adjusting the bond allocation could further tailor the portfolio’s risk profile to match personal risk tolerance more closely.

Sectors Info

  • Technology
    26%
  • Financials
    15%
  • Consumer Discretionary
    10%
  • Industrials
    10%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    3%
  • Utilities
    2%

Sector allocation is concentrated in technology, financial services, and consumer cyclicals, which are typically growth-oriented sectors. This concentration could lead to higher volatility, particularly in market downturns. Diversifying more evenly across sectors, including defensive ones like utilities or consumer staples, may provide a more stable return profile, particularly in volatile markets.

Regions Info

  • North America
    76%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

The geographic allocation is heavily weighted towards North America (76%), with modest exposure to developed Europe and emerging markets. This concentration in developed markets, particularly the U.S., has historically provided strong growth opportunities but may limit exposure to potential gains in emerging markets. Increasing diversification into emerging or frontier markets could enhance growth prospects and reduce geographical risk.

Market capitalization Info

  • Mega-cap
    40%
  • Large-cap
    29%
  • Mid-cap
    18%
  • Small-cap
    6%
  • Micro-cap
    2%

The market capitalization breakdown shows a preference for large (mega and big) cap stocks, which tend to be more stable and less volatile than their smaller counterparts. This is consistent with the portfolio’s balanced risk profile but may limit exposure to the higher growth potential of mid or small-cap stocks. Incrementally increasing allocations to smaller caps could enhance growth prospects, 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.

Using the Efficient Frontier to optimize the portfolio suggests that while the current allocation is well-balanced for a moderate risk profile, there may be room to adjust the asset mix to improve the risk-return ratio. Such optimization could involve increasing bond holdings or diversifying into alternative asset classes to enhance returns for the same level of risk.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.65%

The dividend yields from the bond and stock ETFs contribute to the portfolio's income, with an overall yield of 1.65%. Given the current allocation, this yield provides a modest income stream while focusing on capital appreciation. For investors seeking higher income, reallocating towards assets with higher dividend yields or considering dividend growth stocks could be beneficial.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • 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) 0.03%

The portfolio's costs are impressively low, with a Total Expense Ratio (TER) of 0.03%, which is beneficial for long-term growth as lower costs directly translate to higher net returns. Maintaining focus on low-cost investments supports better long-term performance and is a prudent strategy for all investors.

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