A balanced and highly diversified portfolio emphasizing global stocks and bonds

Report created on Aug 2, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is structured with a strong emphasis on diversified investments, comprising 45% in a total stock market index, 20% in intermediate-term treasuries, 20% in international stocks, and 15% in emerging markets. This composition indicates a balanced approach, blending growth potential with income stability. The blend of asset classes, with a heavier weight towards stocks, aligns with a balanced risk profile, aiming to mitigate volatility while capturing growth.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 9.19%, with a maximum drawdown of -27.90%. These figures suggest resilience during market downturns and robust growth over time. The significant days contributing to most returns indicate that while the portfolio has periods of high performance, it also faces volatility. Comparing these metrics to benchmarks can help contextualize performance, especially during turbulent markets.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 153.2% and a notable 93.3% of simulations yielding positive returns. These projections, while not guarantees, suggest a strong likelihood of future growth. However, it's crucial to remember that these simulations are based on historical data, which may not fully predict future market behavior.

Asset classes Info

  • Stocks
    79%
  • Bonds
    20%
  • Cash
    1%

The allocation across asset classes, with 79% in stocks and 20% in bonds, positions this portfolio for growth while using bonds to provide income and reduce volatility. This balance is typical for investors with a moderate risk tolerance, seeking both capital appreciation and preservation. Adjusting the stock-to-bond ratio could further align the portfolio with specific risk tolerance and investment horizons.

Sectors Info

  • Technology
    20%
  • Financials
    14%
  • Consumer Discretionary
    9%
  • Industrials
    9%
  • Health Care
    7%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Basic Materials
    3%
  • Energy
    3%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocations show a heavy weighting towards technology and financial services, which may drive growth but also increase susceptibility to sector-specific downturns. The diversity across 11 sectors, however, helps mitigate this risk. Keeping an eye on sector performance and rebalancing as necessary can maintain alignment with investment objectives and market conditions.

Regions Info

  • North America
    46%
  • Asia Emerging
    12%
  • Europe Developed
    8%
  • Asia Developed
    5%
  • Japan
    3%
  • Africa/Middle East
    2%
  • Latin America
    2%
  • Australasia
    1%

Geographically, the portfolio is well-diversified, with significant exposure to North America and emerging markets in Asia. This global spread enhances growth potential and reduces the impact of regional downturns. However, the relatively lower exposure to developed European markets and Australasia may limit diversification benefits. Considering a rebalance to include underrepresented regions could enhance global exposure.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    24%
  • Mid-cap
    14%
  • Small-cap
    4%
  • Micro-cap
    1%

The market capitalization breakdown, with a focus on mega and large-cap stocks, suggests a preference for stability and lower volatility. However, the smaller allocation to mid, small, and micro-caps could mean missing out on high-growth opportunities. Introducing more small and mid-cap exposure could diversify growth sources and potentially enhance returns.

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 nears the Efficient Frontier, indicating an optimal risk-return balance based on historical data. While this suggests the portfolio is well-optimized, continuous evaluation is necessary. Changes in market conditions or investment goals may warrant adjustments to maintain this optimal balance.

Dividends Info

  • Vanguard Intermediate-Term Treasury Index Fund ETF Shares 3.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.80%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 2.22%

The dividend yield of 2.22% contributes to the portfolio's income, complementing capital gains for total return. This yield, stemming from a mix of stocks and bonds, illustrates the portfolio's balanced approach to growth and income. Evaluating dividend-paying assets periodically can ensure they continue to meet income objectives without compromising growth.

Ongoing product costs Info

  • Vanguard Intermediate-Term Treasury Index Fund ETF Shares 0.04%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

With an overall expense ratio of 0.04%, the portfolio is cost-efficient, maximizing the potential for net returns. Low costs are crucial for long-term growth, as they compound over time. Investors should continue to monitor fees to ensure they remain competitive, as even small differences can significantly impact long-term outcomes.

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