A balanced approach to global diversification with a focus on technology and financial sectors

Report created on Jul 21, 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 structured around two main ETFs that cover the total stock market in the U.S. and internationally, with a 70/30 split favoring domestic stocks. This allocation underscores a balanced but growth-oriented strategy, aiming to capitalize on the broad market movements while hedging against domestic market volatility through international exposure. The simplicity of the portfolio, with its focus on broad market indices, facilitates easy management and rebalancing.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 12.19%, with a maximum drawdown of -34.58%. These figures suggest a resilient performance across varying market conditions, with significant recovery capabilities post-downturns. It's crucial to note, however, that past performance is not indicative of future results, and investors should prepare for fluctuations.

Projection Info

Monte Carlo simulations, utilizing 1,000 different market scenarios, paint a varied picture of potential future outcomes. With 97.6% of simulations showing positive returns and a median projected annualized return of 11.27%, the portfolio demonstrates strong potential. Yet, it's important to remember that these projections are based on historical data and cannot guarantee future performance.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's allocation is heavily skewed towards stocks (99%), with a minimal cash reserve (1%). This composition is typical for growth-oriented investors but comes with higher volatility. Diversifying across different asset classes, such as bonds or real estate, could provide additional stability during market downturns.

Sectors Info

  • Technology
    26%
  • Financials
    17%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    3%
  • Real Estate
    3%
  • Utilities
    3%

Sector allocation leans heavily towards technology and financial services, which could lead to higher volatility given these sectors' sensitivity to market changes and economic cycles. However, this focus also offers the potential for significant growth, especially in bullish market conditions.

Regions Info

  • North America
    72%
  • Europe Developed
    12%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

With 72% of assets in North America and the remaining spread across developed and emerging markets, the portfolio is well-positioned to capture global growth while maintaining a strong domestic foundation. However, the modest exposure to emerging markets might limit potential high-growth opportunities.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    31%
  • Mid-cap
    19%
  • Small-cap
    6%
  • Micro-cap
    2%

The portfolio's emphasis on mega and big-cap stocks (73% combined) suggests a preference for stability and established companies. While this may reduce volatility, diversifying into medium, small, and micro-cap stocks could enhance growth potential and mitigate sector-specific risks.

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 well-optimized for a balance between risk and return based on its current assets. However, ongoing review and slight adjustments could further enhance its risk-return profile, especially by incorporating assets with lower correlation to the stock market.

Dividends Info

  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.68%

With a total dividend yield of 1.68%, the portfolio provides a modest income stream, which can contribute to overall returns, especially in volatile or bearish markets. Investors seeking higher income might consider reallocating towards assets with higher yield potentials.

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 0.04%. This efficiency supports better long-term performance by minimizing the drag on returns, showcasing the benefits of index fund investing.

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