This portfolio has only about 10 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

Balanced Portfolio with Strong Diversification and Low Costs

Report created on Jul 26, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio consists of two main ETFs: Vanguard S&P 500 ETF making up 70% and Vanguard Total International Stock Index Fund ETF Shares at 30%. This composition suggests a focus on large-cap U.S. stocks with a significant international exposure. The high allocation to the S&P 500 indicates confidence in the U.S. market's stability and growth potential. The inclusion of international stocks adds a layer of diversification, reducing reliance on any single market. To further diversify, consider adding other asset classes like bonds or real estate.

Growth Info

Historically, this portfolio has shown a strong performance with a Compound Annual Growth Rate (CAGR) of 10.66%. However, it also experienced a maximum drawdown of -33.86%, indicating significant volatility during market downturns. This performance suggests that while the portfolio has the potential for high returns, it is also subject to substantial risks. To mitigate these risks, consider periodic rebalancing and possibly incorporating more defensive assets to smooth out volatility.

Projection Info

Using a Monte-Carlo simulation with 1,000 simulations, the portfolio's future performance was projected. The median (50th percentile) end portfolio value was 226.12%, with a 5th percentile at 3.86% and a 67th percentile at 332.65%. This suggests a wide range of possible outcomes, reflecting the inherent uncertainty in financial markets. Monte-Carlo simulations help in understanding potential future scenarios and preparing for different market conditions. Consider stress-testing the portfolio under various economic conditions to ensure it aligns with long-term goals.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is heavily weighted towards stocks, making up 99.02% of the total allocation, with minimal allocations in cash and other categories. This high equity exposure implies a higher risk and potential for higher returns. However, it also means the portfolio is more susceptible to market volatility. To reduce risk, consider diversifying into other asset classes such as bonds, which can provide stability and income during market downturns.

Sectors Info

  • Technology
    25%
  • Financials
    15%
  • Health Care
    11%
  • Consumer Discretionary
    11%
  • Industrials
    10%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    4%
  • Real Estate
    3%
  • Utilities
    2%

The portfolio spans across 11 sectors, with Technology (25.50%), Financial Services (14.83%), and Healthcare (11.40%) being the largest allocations. This sector diversification helps in spreading risk across different parts of the economy. However, the heavy weighting in Technology could lead to higher volatility. To achieve a more balanced sector allocation, consider adjusting the weights or adding ETFs that focus on underrepresented sectors.

Regions Info

  • North America
    72%
  • Europe Developed
    12%
  • Japan
    5%
  • Asia Emerging
    4%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is predominantly invested in North America (71.94%), followed by Europe Developed (12.22%) and Japan (4.96%). This geographical diversification helps in mitigating the risks associated with any single region. However, the heavy reliance on North America could expose the portfolio to U.S. market-specific risks. To further diversify, consider increasing exposure to emerging markets and other underrepresented regions.

Dividends Info

  • Vanguard S&P 500 ETF 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 3.10%
  • Weighted yield (per year) 1.84%

The portfolio's dividend yield data is not provided, but given the ETFs involved, it is likely to have a moderate yield. Dividends can provide a steady income stream and contribute to total returns, especially during periods of low capital appreciation. To enhance income, consider incorporating high-dividend-yielding ETFs or individual stocks. This could provide a cushion during market downturns and contribute to overall portfolio stability.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.04%

The portfolio has impressively low costs, with a total expense ratio (TER) of just 0.04%. Low costs are crucial for long-term investment success as they directly impact net returns. Vanguard's ETFs are known for their cost efficiency, which is a significant advantage. To maintain this cost advantage, continue to monitor expense ratios and consider low-cost alternatives when making any changes to the portfolio. Keeping costs low should remain a priority to maximize net returns.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey