A well-rounded portfolio with a cautious approach and strong diversification across asset classes

Report created on Aug 28, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio exhibits a balanced composition, primarily divided between stocks and bonds, with a slight tilt towards equities. The significant allocation to the Vanguard Total Stock Market and Total Bond Market Index Funds indicates a preference for broad market exposure, minimizing unsystematic risk. The inclusion of both developed and emerging market ETFs enhances geographic diversification, further spreading risk across different economies and market conditions.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 8.73%, with a maximum drawdown of -24.25%. These figures suggest a relatively stable performance trajectory, considering the cautious risk profile. The days contributing most to returns highlight the portfolio's sensitivity to market highs, emphasizing the importance of staying invested during volatile periods for optimal growth.

Projection Info

Using Monte Carlo simulations, which forecast future performance based on historical data, the portfolio shows a wide range of outcomes. The median projection suggests a significant potential for growth, with the majority of simulations indicating positive returns. However, it's crucial to remember that these simulations are speculative and depend heavily on past market behaviors, which may not predict future trends accurately.

Asset classes Info

  • Stocks
    60%
  • Bonds
    39%
  • Cash
    1%

The allocation between stocks (60%) and bonds (39%) aligns with a cautious investment strategy, balancing growth potential with risk mitigation. This mix is suitable for investors seeking moderate growth while preserving capital. The minimal cash allocation suggests efficient capital deployment, yet maintaining a small liquidity reserve is wise for unforeseen needs or opportunities.

Sectors Info

  • Technology
    16%
  • Financials
    10%
  • Industrials
    7%
  • Consumer Discretionary
    6%
  • Health Care
    6%
  • Telecommunications
    5%
  • Consumer Staples
    3%
  • Energy
    2%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocations are broadly diversified, with a slight emphasis on technology and financial services. This distribution reflects a modern investment approach, recognizing the growth potential in tech while valuing the stability of financial institutions. However, the concentration in these sectors may introduce sector-specific risks, warranting periodic review to ensure alignment with market conditions and risk tolerance.

Regions Info

  • North America
    43%
  • Europe Developed
    7%
  • Asia Emerging
    4%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographic diversification is well-executed, combining North American assets with significant exposure to developed and emerging markets. This global footprint can reduce region-specific risks and tap into growth opportunities worldwide. However, the portfolio's performance may be influenced by geopolitical events and currency fluctuations, necessitating ongoing monitoring.

Market capitalization Info

  • Mega-cap
    26%
  • Large-cap
    19%
  • Mid-cap
    11%
  • Small-cap
    3%
  • Micro-cap
    1%

The emphasis on mega and big-cap stocks suggests a preference for established companies, likely chosen for their stability and lower volatility compared to smaller firms. This approach fits the portfolio's cautious profile but may limit exposure to high-growth potential in mid and small-cap segments, which could be considered for a more balanced risk-reward ratio.

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.

The portfolio's current allocation demonstrates a well-considered balance between risk and return, as suggested by its positioning relative to the Efficient Frontier. This balance indicates an optimized risk-return ratio given the existing asset mix. However, investors should periodically reassess their allocations, considering changing market conditions and personal financial goals to maintain this optimization.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.60%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 2.49%

The portfolio's dividend yield contributes to total returns, offering a cushion during market dips and enhancing income. The yields across different ETFs provide a good balance between income and growth prospects. For investors prioritizing steady income, this aspect of the portfolio is well-aligned, though the specific allocation to higher-yielding assets can be adjusted based on income needs and growth objectives.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.04%

With an overall expense ratio of 0.04%, the portfolio benefits from low costs, maximizing net returns for the investor. This efficiency is particularly advantageous over the long term, as even minor fee reductions can significantly impact compound growth. Investors should continue prioritizing low-cost options when possible, ensuring more of their investment returns contribute to portfolio growth rather than expenses.

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