A balanced yet growth-oriented portfolio with strong sector and geographic diversification

Report created on Jan 7, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio consists of three core ETFs: 60% in Vanguard Total Stock Market, 30% in Vanguard Total International Stock, and 10% in Vanguard Total Bond Market. This composition leans heavily towards equities, offering growth potential. Compared to typical balanced portfolios, which often feature a higher bond allocation, this setup favors stock exposure. This can provide higher returns but also increases volatility. Consider maintaining this balance if you're comfortable with the associated risks, or slightly increasing bond exposure for more stability.

Growth Info

Historically, the portfolio has delivered a robust Compound Annual Growth Rate (CAGR) of 10.41%, indicating strong past performance. This is notable against a backdrop of a maximum drawdown of -32.13%, highlighting significant volatility during downturns. Compared to benchmarks, this performance aligns well with growth-oriented portfolios, but the drawdown suggests potential risks during market corrections. Keep in mind that past performance doesn't guarantee future results, so it's wise to prepare for similar volatility levels.

Projection Info

Monte Carlo simulations, which use historical data to predict possible future outcomes, suggest a median portfolio growth of 143.2%. While 67% of simulations project even higher returns, 5% anticipate a loss of -3.35%. This indicates a favorable outlook, but it's based on historical trends and assumptions. Remember, simulations are not foolproof predictors. Continue monitoring market conditions and adjust allocations if your risk tolerance or financial goals change.

Asset classes Info

  • Stocks
    89%
  • Bonds
    10%
  • Cash
    1%

The portfolio is predominantly invested in stocks (89.27%) with a smaller allocation to bonds (9.85%). This allocation supports growth but reduces defensive capabilities during market downturns. Compared to typical balanced portfolios, which often include more bonds for stability, your allocation is more aggressive. Consider increasing bond exposure slightly if you seek more balance or maintaining current levels if growth is your primary goal.

Sectors Info

  • Technology
    22%
  • Financials
    14%
  • Industrials
    10%
  • Health Care
    10%
  • Consumer Discretionary
    9%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    4%
  • Real Estate
    3%
  • Utilities
    2%

The portfolio is well-diversified across sectors, with technology leading at 22.40%, followed by financial services and industrials. This mirrors common benchmark allocations and provides a good balance. A notable tech concentration may lead to higher volatility, especially during interest rate changes. Ensure this aligns with your risk tolerance, and consider slight adjustments if you prefer less exposure to potentially volatile sectors.

Regions Info

  • North America
    62%
  • Europe Developed
    12%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America (62.12%), with notable exposure to developed Europe and emerging Asia. This aligns with global benchmarks, offering a diverse spread across regions. However, limited exposure to Latin America and emerging Europe may miss potential growth opportunities. Consider whether these align with your investment goals, and adjust if desired for broader geographic diversification.

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 Efficient Frontier suggests that the portfolio is well-optimized for its current risk-return profile. This means it's achieving a desirable balance between risk and return based on its existing asset allocation. While further optimization is possible, your current setup is efficient for a growth-oriented strategy. Regularly reassess this balance to ensure it aligns with your evolving financial goals.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.70%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 3.30%
  • Weighted yield (per year) 2.08%

The portfolio's overall dividend yield is 2.08%, with the highest contributions from the bond and international stock ETFs. Dividends provide a steady income stream, which can be reinvested for compounding growth or used as cash flow. This yield is beneficial for income-focused investors but might be secondary for those prioritizing capital appreciation. Continue monitoring yields to ensure they align with your income needs.

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 0.08%
  • Weighted costs total (per year) 0.04%

With a Total Expense Ratio (TER) of 0.04%, the portfolio is cost-efficient, supporting better long-term returns. Low costs mean more of your money stays invested, compounding over time. Vanguard's reputation for low-cost funds aligns well with this strategy. No significant cost optimizations are needed, but regularly reviewing fees ensures they remain competitive.

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