Balanced and highly diversified portfolio with a strategic mix across asset classes and geographies

Report created on Aug 8, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio showcases a balanced approach, evenly distributing its assets across four major ETFs that cover bonds, U.S. equities, international stocks, and emerging markets. The equal weighting across diverse asset classes and geographical regions suggests a strategic effort to mitigate risk through diversification. This structure aligns well with the principles of modern portfolio theory, aiming to maximize returns for a given level of risk.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 8.18%, with a maximum drawdown of -26.98%. These figures indicate a resilient performance across varying market conditions, balancing growth with a controlled level of risk. The days contributing most to returns highlight the portfolio's potential for significant gains, albeit with inherent volatility.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 163.1% in portfolio value, suggesting a strong potential for growth. However, the presence of simulations with negative returns underscores the importance of understanding risk, even in a diversified portfolio. These projections, while informative, rely on historical data and cannot guarantee future results.

Asset classes Info

  • Stocks
    74%
  • Bonds
    25%
  • Cash
    1%

The asset allocation, with 74% in stocks and 25% in bonds, tilts the portfolio towards growth while using bonds to provide stability. This mix is appropriate for a balanced profile that seeks to capture equity market gains but is cushioned against volatility by fixed income investments. The minimal cash holding keeps the portfolio fully invested, which is beneficial in growth-oriented strategies.

Sectors Info

  • Technology
    17%
  • Financials
    15%
  • Consumer Discretionary
    8%
  • Industrials
    8%
  • Telecommunications
    6%
  • Health Care
    6%
  • Consumer Staples
    4%
  • Basic Materials
    4%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%

The sectoral distribution is well-spread, with a heavier emphasis on technology and financial services. This reflects a modern growth-oriented strategy, though the concentration in these sectors could introduce specific risks related to sectoral performance. Diversifying across a broad range of sectors can help mitigate these risks.

Regions Info

  • North America
    27%
  • Asia Emerging
    16%
  • Asia Developed
    10%
  • Europe Developed
    10%
  • Japan
    4%
  • Africa/Middle East
    3%
  • Latin America
    2%
  • Australasia
    1%
  • Europe Emerging
    1%

Geographic exposure is broad, with significant allocations to North America and emerging markets in Asia, which enhances the portfolio's growth potential. The diversified global exposure positions the portfolio to benefit from growth across different economies, though it also introduces geopolitical and currency risks.

Market capitalization Info

  • Mega-cap
    35%
  • Large-cap
    24%
  • Mid-cap
    12%
  • Small-cap
    2%

The focus on mega and big cap stocks suggests a preference for established, less volatile companies. This is a prudent choice for a balanced portfolio, as these companies often offer stable returns. However, including a small allocation to medium, small, or micro caps could provide 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.

Considering the Efficient Frontier, this portfolio appears well-optimized for a balanced risk-return profile. Adjustments could be made to explore further efficiency, potentially by tweaking asset class weights or diversifying within sectors. However, the current allocation provides a solid foundation for achieving long-term investment goals.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • iShares Core MSCI Emerging Markets ETF 3.00%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 2.70%

The portfolio's dividend yield contributes to its total return, providing a steady income stream. This is particularly beneficial in a balanced portfolio, where income combined with capital appreciation supports growth. The yields are in line with the portfolio's risk profile and investment goals.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • iShares Core MSCI Emerging Markets ETF 0.09%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.05%

The overall low cost of 0.05% TER (Total Expense Ratio) is impressive, enhancing long-term returns by minimizing expense drag. This cost efficiency is crucial for maximizing net returns, particularly in a low-yield environment.

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