Balanced three fund portfolio combining broad stocks and treasuries with low cost diversification
Report created on Apr 14, 2026Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
Positions
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IT iShares Core S&P Total U.S. Stock Market ETF
ITOT - US4642871507 50.00% -
VG Vanguard Intermediate-Term Treasury Index Fund ETF Shares
VGIT - US92206C7065 30.00% -
ID iShares Core MSCI International Developed Market
IDEV - US46435G3267 20.00%
The portfolio is built from three broad index ETFs: total US stocks, international developed stocks, and intermediate treasuries. The split of 50% US equity, 20% international equity, and 30% bonds creates a classic “balanced” mix tilted slightly more toward growth than defense. Structurally, this is simple and easy to manage, which reduces the risk of tinkering and timing mistakes. A three‑fund structure like this is a textbook way to cover thousands of securities with just a few holdings. The main takeaway is that this setup offers solid diversification and clarity of purpose while still leaving room to adjust the stock‑bond mix as life circumstances or risk tolerance change.
Growth
From 2017 to early 2026, a $1,000 investment grew to about $2,416, which works out to a 10.35% compound annual growth rate (CAGR). CAGR is basically the “average speed” per year over the whole trip. This lagged both the US market and the global market, mainly because of the 30% bond slice and the smaller non‑US exposure. In exchange, the portfolio had a smaller maximum drawdown at about -24.8%, versus roughly -33.5% for the benchmarks during the COVID crash. That gentler downside fit the “balanced” label. The trade‑off is clear: slightly lower long‑term return, but noticeably smoother ride when markets get rough.
Projection
The Monte Carlo projection uses past return and volatility patterns to simulate 1,000 different 15‑year futures for this mix. Think of it as running the same movie many times with slightly different market twists each run. The median result grows $1,000 to about $2,548, roughly 6.9% a year, with most outcomes between about $1,889 and $3,430. There’s about a three‑in‑four chance of ending with a positive return. These ranges help set realistic expectations: good odds of growth, but also real uncertainty. It’s important to remember that these simulations lean on historical behavior; markets can change, so projections are a guide, not a promise.
Asset classes
- Stocks 70%
- Bonds 30%
Asset‑class wise, the portfolio is 70% stocks and 30% bonds, which lines up nicely with a typical “balanced” or moderate‑risk profile. Stocks are the main growth engine, while the treasury fund acts as a shock absorber when risk assets stumble. Compared with a 100% equity portfolio, this mix will usually give up some upside in roaring bull markets but hold up better in sharp downturns. That trade‑off often helps investors stay invested through rough patches. This allocation is well‑balanced and aligns closely with global standards for long‑term investors who want growth but don’t want to ride the full rollercoaster of an all‑equity portfolio.
Sectors
- Technology 18%
- Financials 11%
- Industrials 9%
- Health Care 7%
- Consumer Discretionary 7%
- Telecommunications 6%
- Consumer Staples 4%
- Energy 3%
- Basic Materials 3%
- Utilities 2%
- Real Estate 2%
This breakdown covers the equity portion of your portfolio only.
Sector exposure across the equity slice is fairly spread out: technology is largest at 18%, followed by financials, industrials, health care, and consumer areas, with smaller stakes in energy, materials, utilities, and real estate. This looks very similar to broad global indices and avoids extreme bets on any single part of the economy. A technology tilt means sensitivity to rate moves and innovation cycles, but it’s not dominating the portfolio. The sector composition matches benchmark data, which is a strong indicator of diversification. In practice, that means no single industry’s boom or bust is likely to control the overall outcome over the long run.
Regions
- North America 52%
- Europe Developed 11%
- Japan 4%
- Australasia 1%
- Asia Developed 1%
This breakdown covers the equity portion of your portfolio only.
Geographically, about 52% of the portfolio is in North America, with meaningful slices in developed Europe and smaller amounts in Japan, Australasia, and other developed Asia. This is somewhat less US‑heavy than many American investors, thanks to the dedicated international fund. While it is still anchored in the US, the exposure to other developed markets adds currency and economic diversification, which can help when different regions move on different cycles. Compared with a global market‑cap index, there’s a mild tilt toward the home region, but nothing extreme. This allocation is well‑balanced and aligns closely with global standards for developed‑market exposure.
Market capitalization
- Mega-cap 29%
- Large-cap 22%
- Mid-cap 13%
- Small-cap 4%
- Micro-cap 1%
This breakdown covers the equity portion of your portfolio only.
Market cap exposure leans toward the giants: roughly 29% mega‑cap and 22% large‑cap, with smaller but real stakes in mid, small, and micro‑caps. That mirrors how broad market indexes are built, where the biggest companies naturally take up more space. The smaller‑company exposure brings extra growth potential and diversification, but also a bit more volatility during stress. Still, the dominant role of mega‑caps keeps overall behavior close to mainstream benchmarks. This is a good example of “owning the market”: plenty of coverage of the big household names, with a long tail of smaller firms that quietly contribute to long‑term returns in the background.
True holdings
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NV NVIDIA Corporation 3.37%
Part of fund(s):- iShares Core S&P Total U.S. Stock Market ETF
-
AA Apple Inc 2.90%
Part of fund(s):- iShares Core S&P Total U.S. Stock Market ETF
-
MS Microsoft Corporation 2.15%
Part of fund(s):- iShares Core S&P Total U.S. Stock Market ETF
-
AM Amazon.com Inc 1.63%
Part of fund(s):- iShares Core S&P Total U.S. Stock Market ETF
-
GO Alphabet Inc Class A 1.38%
Part of fund(s):- iShares Core S&P Total U.S. Stock Market ETF
-
AV Broadcom Inc 1.23%
Part of fund(s):- iShares Core S&P Total U.S. Stock Market ETF
-
GO Alphabet Inc Class C 1.11%
Part of fund(s):- iShares Core S&P Total U.S. Stock Market ETF
-
ME Meta Platforms Inc. 0.98%
Part of fund(s):- iShares Core S&P Total U.S. Stock Market ETF
-
TS Tesla Inc 0.76%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- iShares Core S&P Total U.S. Stock Market ETF
-
BR Berkshire Hathaway Inc 0.68%
Part of fund(s):- iShares Core S&P Total U.S. Stock Market ETF
- Top 10 total 16.20%
Looking through the ETFs’ top holdings, the biggest exposures are to familiar mega‑cap names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, and Meta. These appear via both the US and international developed market ETFs, which can create overlap even though it’s not fully captured because only ETF top‑10 holdings are used. This kind of overlap concentrates some risk in a handful of giant companies driving global indexes. That’s not unusual in modern index investing; it’s how the market itself looks today. The key point is that while the portfolio holds thousands of stocks, day‑to‑day moves are still heavily influenced by a small group of global leaders.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
On factor exposure, most characteristics are neutral, meaning they look like the overall market in terms of value, size, momentum, and quality. The interesting tilts are toward yield and low volatility, both rated “high.” Factor exposure is basically how much your portfolio leans into certain traits that drive returns and risk over time. A higher yield tilt reflects the bond allocation and dividend‑paying equities, which can help with income needs. The low‑volatility tilt fits the balanced stock‑bond mix, suggesting somewhat smoother swings than a pure equity portfolio. Overall, this is a well‑balanced factor profile, with a gentle bias toward stability and income.
Risk contribution
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iShares Core S&P Total U.S. Stock Market ETF
Weight: 50.00% 74.3% -
iShares Core MSCI International Developed Market
Weight: 20.00% 25.6% -
Vanguard Intermediate-Term Treasury Index Fund ETF Shares
Weight: 30.00% 0.1%
Risk contribution shows how much each holding actually drives the portfolio’s ups and downs, which can differ from its percentage weight. Here, the US total stock market ETF is 50% of the assets but contributes over 74% of total risk. The international equity ETF is 20% of the assets and adds around 26% of risk. Meanwhile, the 30% bond position barely registers in overall volatility, contributing essentially none. That’s typical: high‑quality bonds are very steady compared with stocks. The key insight is that, in practice, nearly all the portfolio’s risk comes from the 70% equity slice, even though bonds take up almost a third of the dollars invested.
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.
On the risk‑return chart, the current portfolio sits on or very near the efficient frontier. The efficient frontier is the curve showing the best possible return for each level of risk using these same holdings in different mixes. The current Sharpe ratio of 0.49 is lower than the “max Sharpe” version at 0.73, but that optimal mix would also crank risk up from about 12.5% to nearly 19%. The minimum‑variance portfolio cuts risk a lot but also slashes expected return. Being close to the frontier means the chosen 70/30 balance is already an efficient trade‑off for its risk level, which is exactly what you want to see.
Dividends
- iShares Core MSCI International Developed Market 3.20%
- iShares Core S&P Total U.S. Stock Market ETF 1.10%
- Vanguard Intermediate-Term Treasury Index Fund ETF Shares 3.80%
- Weighted yield (per year) 2.33%
Income‑wise, the overall yield is about 2.33%, blending a 3.8% yield from treasuries, 3.2% from developed international stocks, and a lower 1.1% yield from US stocks. Dividend yield is the cash an investment pays out each year as a percentage of its price, and it can be a useful cushion during flat or choppy markets. For someone reinvesting distributions, this income quietly boosts compounding over time. For someone drawing income, it helps reduce how much needs to be sold in down markets. The yield tilt highlighted in the factor section is clearly visible here and is a nice complement to the growth tilt of global equities.
Ongoing product costs
- iShares Core MSCI International Developed Market 0.04%
- iShares Core S&P Total U.S. Stock Market ETF 0.03%
- Vanguard Intermediate-Term Treasury Index Fund ETF Shares 0.04%
- Weighted costs total (per year) 0.04%
Costs are impressively low, with a blended total expense ratio (TER) of about 0.04%. TER is the annual fee charged by funds as a percentage of your investment. Keeping this number low is one of the most reliable ways to improve long‑term results because fees come off every year, regardless of performance. This portfolio is using some of the cheapest broad index ETFs available, which is a real strength. Over decades, the savings from a 0.04% TER compared with more expensive options can add up to thousands of dollars. The costs here are a genuine highlight and strongly support better long‑term performance.
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