Balanced and globally diversified portfolio with a strong foundation in major markets

Report created on Dec 3, 2025

Risk profile Info

4/7
Balanced
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Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is streamlined yet effectively diversified, comprising 70% in the SPDR S&P 500 ETF Trust and 30% in the Vanguard Total International Stock Index Fund ETF Shares. This allocation underscores a strategic focus on leveraging the growth potential of large-cap U.S. equities while incorporating international exposure to capture global market performance. The simplicity of this two-ETF structure facilitates easy management and rebalancing, yet it spans a broad array of sectors and geographies, aligning well with a balanced risk profile.

Growth Info

Historically, the portfolio has demonstrated robust growth with a Compound Annual Growth Rate (CAGR) of 13.45%. Despite experiencing a significant maximum drawdown of -33.62%, the portfolio's resilience is evident in its ability to recover and sustain growth over time. It's important to note that while past performance is a useful indicator, it does not guarantee future results. The portfolio's historical performance, especially its recovery from drawdowns, suggests a well-considered balance between risk and return.

Projection Info

Monte Carlo simulations project a wide range of potential outcomes for this portfolio, with a median projected growth of 371.5% over the simulation period. Such projections, while based on historical data, offer a glimpse into the portfolio's capacity for future growth under varying market conditions. It's crucial to remember that these simulations are hypothetical and should be viewed as one of many tools in evaluating potential investment strategies.

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 composition is reflective of a growth-oriented strategy, prioritizing capital appreciation over income or liquidity. While this allocation supports the potential for higher returns, investors should be mindful of the associated volatility and consider whether this aligns with their risk tolerance and investment horizon.

Sectors Info

  • Technology
    30%
  • Financials
    16%
  • Consumer Discretionary
    10%
  • Industrials
    10%
  • Health Care
    9%
  • Telecommunications
    9%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

Sector allocations within this portfolio are well-diversified, with technology (30%) and financial services (16%) leading the composition. This sectoral distribution mirrors broader market trends, where technology and financial sectors often drive performance. However, the heavy weighting in technology could expose the portfolio to sector-specific risks, suggesting a need for periodic review to ensure alignment with overall investment objectives.

Regions Info

  • North America
    72%
  • Europe Developed
    11%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic allocation emphasizes North America (72%), with meaningful exposure to developed Europe (11%) and emerging and developed Asia. This distribution enhances global diversification, mitigating risks associated with overconcentration in any single region. However, the portfolio's relatively low exposure to emerging markets outside of Asia may limit potential gains from these high-growth areas.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    34%
  • Mid-cap
    18%
  • Small-cap
    2%

The portfolio's emphasis on mega (46%) and big (34%) cap stocks underscores a preference for established, large-scale companies known for their stability and potential for steady growth. While this may reduce volatility, the modest allocation to medium, small, and micro-cap stocks (20% combined) could limit exposure to high-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.

The current allocation appears to be well-positioned on the Efficient Frontier, suggesting an optimal risk-return balance given the existing assets. However, continuous reassessment is essential, as shifts in market dynamics could alter the efficiency of the portfolio's allocation. Investors should periodically review their portfolio against the Efficient Frontier to ensure ongoing alignment with their risk and return objectives.

Dividends Info

  • SPDR S&P 500 ETF Trust 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.58%

The portfolio yields a combined dividend of 1.58%, with the international component contributing a higher yield (2.70%) compared to the domestic S&P 500 ETF (1.10%). While not the primary focus, these dividends can provide a steady income stream and help cushion the portfolio during market volatility, contributing to overall returns.

Ongoing product costs Info

  • SPDR S&P 500 ETF Trust 0.10%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.08%

With a total expense ratio (TER) of 0.08%, the portfolio benefits from relatively low costs, enhancing net returns over the long term. Cost efficiency is crucial in portfolio management, as lower costs directly translate to higher investment returns, assuming all else is equal. Investors should continue to monitor fund expenses, as even small reductions in fees can compound significantly over time.

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