Balanced Global Stock Portfolio with a Strong Foundation in Diverse Sectors and Geographies

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 with a 60% allocation to a total U.S. stock market ETF and a 40% allocation to an international stock ETF, showcasing a strategic balance between domestic and global investments. Such a composition indicates a deliberate effort to capture growth across a wide array of markets while mitigating risk through geographical diversification. The focus on ETFs suggests a preference for broad market exposure over picking individual stocks, aligning with a strategy that favors long-term growth and reduced volatility.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 11.57% and a maximum drawdown of -34.51%, the portfolio's historical performance demonstrates resilience and the potential for robust growth. The significant drawdown reflects market volatility but should be viewed in the context of the portfolio's overall recovery and growth trajectory. The days contributing to 90% of returns underscore the importance of staying invested through market cycles to capture peak growth periods.

Projection Info

Monte Carlo simulations, using 1,000 scenarios, predict a wide range of outcomes but with a strong bias towards positive growth (974 out of 1,000 simulations showing positive returns). This suggests a high probability of future growth, although it's important to remember that these projections are based on historical data and cannot guarantee future performance. The range from the 5th to the 67th percentile highlights the variability in potential outcomes, underscoring the need for long-term commitment and risk tolerance.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily weighted towards stocks (99%), with a minimal cash holding (1%). This allocation is in line with the portfolio's balanced risk profile, aiming for growth while accepting moderate levels of volatility. The almost exclusive focus on equities indicates a strategy that seeks to maximize capital appreciation over the long term, suitable for investors with a corresponding risk tolerance and investment horizon.

Sectors Info

  • Technology
    24%
  • Financials
    18%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    4%
  • Real Estate
    3%
  • Utilities
    3%

Sector allocation is diverse, with technology, financial services, and industrials leading. This sector spread is reflective of the global economy's drivers of growth and innovation. However, the heavy weighting in technology could expose the portfolio to sector-specific risks, such as regulatory changes or market sentiment shifts. A balanced approach across sectors can mitigate such risks, ensuring that the portfolio is well-positioned to capture growth across different economic cycles.

Regions Info

  • North America
    63%
  • Europe Developed
    16%
  • Asia Emerging
    6%
  • Japan
    6%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is well-diversified, with a significant portion in North America (63%) and meaningful exposures to developed Europe (16%) and emerging Asian markets (6%). This global footprint not only provides access to a broad range of growth opportunities but also helps spread risk across different economic and geopolitical environments. However, the relatively lower exposure to emerging markets might limit potential high-growth opportunities, suggesting a possible area for review.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    31%
  • Mid-cap
    18%
  • Small-cap
    5%
  • Micro-cap
    1%

The market capitalization breakdown shows a preference for large (mega and big) companies, which comprise 73% of the portfolio. This bias towards larger companies is consistent with the portfolio's balanced risk profile, as these entities typically offer more stability and less volatility than their smaller counterparts. However, the modest allocation to medium, small, and micro-cap stocks provides some exposure to higher-growth potential, albeit with increased risk.

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 appears well-optimized for a balanced risk-return profile, as indicated by its historical performance and Monte Carlo projections. However, continuous review and potential adjustment based on changing market conditions or personal financial goals are essential. Utilizing the Efficient Frontier concept could further refine the allocation, ensuring the portfolio maintains the optimal balance between risk and return.

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) 1.84%

The dividend yields from the two ETFs contribute to the portfolio's total yield of 1.84%, providing a steady income stream in addition to potential capital gains. This balanced approach to income and growth is particularly appealing for investors who appreciate the dual benefits of receiving regular income while participating in the equity markets' growth potential.

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%

With a total expense ratio (TER) of 0.04%, the portfolio benefits from exceptionally low costs, maximizing the potential for net returns. Low costs are crucial for long-term investment success, as they compound over time, significantly impacting the portfolio's growth. This efficient cost structure is a strong advantage, allowing more of the investment's return to contribute to wealth accumulation.

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