Balanced and highly diversified investment portfolio with a focus on dividend growth and global exposure

Report created on Jul 25, 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 is predominantly invested in equities, with a significant emphasis on dividend-yielding stocks through the Vanguard Dividend Appreciation Index Fund Admiral Shares, constituting nearly half of the portfolio. This is complemented by a substantial allocation to international stocks and the total stock market, alongside a modest but strategic position in global credit bonds. This composition underscores a balanced approach, blending growth potential with income generation, and exhibits a highly diversified stance across asset classes, sectors, and geographies.

Growth Info

Historically, the portfolio has demonstrated robust performance with a Compound Annual Growth Rate (CAGR) of 12.43%. Despite experiencing a maximum drawdown of -31.05%, which is a measure of the largest drop from peak to trough, it has shown resilience over time. The days contributing most significantly to returns are relatively few, highlighting the impact of short-term volatility and the importance of long-term holding to capture growth.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of potential future outcomes, suggest a wide distribution of possible returns. With the majority of simulations indicating positive growth and a median projection significantly higher than the lowest percentile, there's an optimistic outlook for future performance. However, it's crucial to remember that these projections are speculative and not guaranteed.

Asset classes Info

  • Stocks
    91%
  • Bonds
    8%
  • Cash
    1%

The allocation across asset classes with 91% in stocks and 8% in bonds, plus a small cash holding, aligns with a balanced investment strategy that leans towards growth. This mix aims to capture the upside potential of equities while using bonds to mitigate volatility and provide income, a prudent approach for those with a moderate risk tolerance.

Sectors Info

  • Technology
    22%
  • Financials
    19%
  • Health Care
    11%
  • Industrials
    11%
  • Consumer Staples
    8%
  • Consumer Discretionary
    7%
  • Telecommunications
    4%
  • Basic Materials
    3%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    1%

Sector allocation is well-diversified, with a heavier emphasis on technology and financial services. This reflects a contemporary investment strategy that balances between sectors with high growth potential and those offering stability and dividends. However, the concentration in these sectors may introduce sector-specific risks, warranting periodic review to ensure alignment with broader market trends.

Regions Info

  • North America
    71%
  • Europe Developed
    9%
  • No data
    8%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographic exposure is heavily weighted towards North America, with significant positions in developed European markets and a modest presence in emerging markets. This distribution provides a solid foundation in stable, developed economies while offering limited exposure to the growth potential and diversification benefits of emerging markets.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    34%
  • Mid-cap
    15%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's focus on mega and big-cap stocks indicates a preference for established, large-scale companies known for their stability and potential for steady growth. While this may reduce volatility, incorporating a broader range of market capitalizations could enhance diversification and capture growth opportunities in smaller companies.

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, the current asset allocation appears well-optimized for balancing risk and return, based on historical performance. While always room for fine-tuning, the portfolio's diversification across asset classes, sectors, and geographies suggests it is positioned near the optimal risk-return spectrum for its stated goals and risk profile.

Dividends Info

  • VANGUARD DIVIDEND APPRECIATION INDEX FUND ADMIRAL SHARES 1.30%
  • VANGUARD GLOBAL CREDIT BOND FUND INVESTOR SHARES 3.70%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 2.10%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.90%
  • Weighted yield (per year) 1.58%

The portfolio's dividend yield is a key component of its total return, contributing to income generation alongside capital appreciation. With a diversified mix of dividend-yielding assets, it's positioned to benefit from both stable income and growth, making it attractive for investors seeking a balanced return profile.

Ongoing product costs Info

  • VANGUARD DIVIDEND APPRECIATION INDEX FUND ADMIRAL SHARES 0.07%
  • VANGUARD GLOBAL CREDIT BOND FUND INVESTOR SHARES 0.35%
  • 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) 0.09%

The overall cost of the portfolio, as indicated by the Total Expense Ratio (TER) of 0.09%, is impressively low, especially considering the broad diversification and active management of some components. Lower costs directly translate to higher net returns over time, highlighting the portfolio's efficiency and the investor's cost-conscious strategy.

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