Balanced and highly diversified portfolio with a focus on global stocks and bonds

Report created on Jun 11, 2025

Risk profile Info

4/7
Balanced
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Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is structured around a core of global equities and bonds, with a 50% allocation to U.S. stocks, 30% to international stocks, and 20% to U.S. bonds. This composition reflects a balanced approach, aiming to capture growth through equities while using bonds to mitigate volatility. The allocation aligns with a diversified investment strategy, aiming to reduce risk through broad exposure across different markets and asset classes.

Growth Info

Historical performance showcases a Compound Annual Growth Rate (CAGR) of 9.33%, with a maximum drawdown of -29.16%. This indicates that while the portfolio has experienced significant growth, it has also faced substantial downturns. The days contributing to 90% of returns being concentrated in 26.0 days highlights the market's unpredictable nature and the importance of staying invested over the long term to capture key growth spurts.

Projection Info

Monte Carlo simulations, utilizing historical data to forecast future outcomes, suggest a wide range of potential returns. With 958 out of 1,000 simulations yielding positive returns and a median projected growth of 152%, these results underscore the portfolio's potential for significant growth. However, the variability in outcomes also emphasizes the inherent uncertainties in market behavior.

Asset classes Info

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

The portfolio's asset class distribution, with 79% in stocks and 20% in bonds, positions it for growth while providing a cushion against market downturns. This balance is crucial for investors seeking to grow their capital over the long term while managing volatility. The minimal cash holding suggests an efficient use of capital, keeping most of the investment actively working.

Sectors Info

  • Technology
    19%
  • Financials
    14%
  • Industrials
    9%
  • Consumer Discretionary
    8%
  • Health Care
    8%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation is broad, led by technology and financial services, which are known for their growth potential. However, these sectors also come with higher volatility. The presence of defensive sectors like healthcare and consumer staples provides a stabilizing effect, underscoring the portfolio's balanced approach. This sectoral spread helps in navigating different market cycles, leveraging growth while mitigating risks.

Regions Info

  • North America
    52%
  • Europe Developed
    12%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic allocation is heavily weighted towards North America, with meaningful exposure to developed European markets and emerging Asian economies. This global diversification is beneficial, spreading risk across different economic regions. However, the limited exposure to emerging markets and smaller regions like Latin America and Africa/Middle East might mean missing out on potential high-growth opportunities.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    24%
  • Mid-cap
    15%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown, with a strong focus on mega and large-cap stocks, suggests stability and lower volatility. However, the relatively smaller allocation to mid, small, and micro-cap stocks could mean missed opportunities for higher growth, albeit with increased risk. This capitalization strategy aligns with the portfolio's balanced risk profile but may limit upside potential in bull markets.

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, the portfolio appears well-positioned for optimizing the risk-return ratio based on its current asset allocation. However, there's always room to refine the balance between risk and return, potentially by adjusting the allocation towards asset classes or sectors with different risk-return profiles. Regular reviews can ensure the portfolio continues to align with investment goals and market conditions.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 2.28%

With an overall yield of 2.28%, the portfolio provides a moderate income stream through dividends, with bonds contributing significantly to this yield. This income can offer a cushion during market downturns and contribute to total returns. The balance between growth-focused stocks and income-generating bonds underscores the portfolio's balanced approach.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • 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%

The portfolio's total expense ratio (TER) of 0.04% is impressively low, maximizing the potential for net returns. Keeping costs low is crucial for long-term investment success, as high fees can significantly erode gains. This cost efficiency is a strong aspect of the portfolio, supporting better performance over time.

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