Balanced portfolio with a mix of global stocks and bonds emphasizing on diversification

Report created on Aug 19, 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 exhibits a strong foundation in diversification across asset classes, sectors, and geographies, with a significant emphasis on stock ETFs, comprising 89% of the portfolio. The allocation towards bonds at 10% suggests a balanced approach, aiming to mitigate risk while capturing growth. The presence of both large-cap and small-cap value ETFs indicates a strategy that seeks to blend growth potential with value investing principles. The diversification score and risk classification align, indicating a well-considered balance between risk and return.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 9.54%, with a maximum drawdown of -24.72%. This performance, characterized by a relatively high CAGR in conjunction with a moderate drawdown, suggests resilience during market fluctuations. The days contributing to 90% of returns highlight the impact of significant market movements on portfolio performance. This historical data underscores the importance of staying invested over the long term to capture key growth periods.

Projection Info

Forward projections using Monte Carlo simulations, based on 1,000 scenarios, indicate a wide range of potential outcomes, from a 5th percentile loss of -18.1% to a 67th percentile gain of 205.3%. The majority of simulations (90.8%) resulted in positive returns, with an annualized return average of 7.38%. While these projections offer insight into potential future performance, they also underscore the inherent uncertainty in investing, emphasizing the need for a diversified approach to mitigate risk.

Asset classes Info

  • Stocks
    89%
  • Bonds
    10%
  • Cash
    1%

The allocation across asset classes—with stocks dominating at 89% and bonds at 10%—is indicative of a portfolio designed for balanced growth with a moderate risk profile. This composition aligns with the investor's risk classification, aiming to capture the higher growth potential of stocks while using bonds to provide stability and income. The small allocation to cash enhances liquidity, allowing for flexibility in response to market changes or opportunities.

Sectors Info

  • Technology
    21%
  • Financials
    16%
  • Industrials
    11%
  • Consumer Discretionary
    10%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    4%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation reveals a diversified strategy, with significant investments in technology and financial services, followed by industrials and consumer cyclicals. This sector spread is beneficial for mitigating sector-specific risks and capitalizing on growth across different areas of the economy. However, the heavy weighting in technology and financial services may introduce sector concentration risk, warranting periodic review to ensure alignment with diversification goals.

Regions Info

  • North America
    59%
  • Europe Developed
    12%
  • Asia Emerging
    6%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic allocation underscores a strong emphasis on North America, complemented by diversified exposure to developed and emerging markets in Europe, Asia, and other regions. This global spread helps to mitigate risks associated with any single country or region, while also offering the portfolio exposure to growth opportunities worldwide. The balance between developed and emerging markets is particularly noteworthy, as it captures both stability and high-growth potential.

Market capitalization Info

  • Mega-cap
    35%
  • Large-cap
    25%
  • Mid-cap
    17%
  • Small-cap
    8%
  • Micro-cap
    4%

The market capitalization breakdown—showcasing a mix of mega, big, medium, small, and micro-cap stocks—further illustrates the portfolio's diversified approach. This spread across different sizes of companies allows the portfolio to balance the stability of large-cap stocks with the growth potential of small and micro-cap stocks. Regularly reviewing this allocation is crucial to maintaining an optimal balance in line with market changes and investment objectives.

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 suggests a well-optimized balance between risk and return, as indicated by its risk classification and diversification score. While the Efficient Frontier analysis could potentially identify opportunities for further optimization, the existing diversification and risk management strategies appear to align well with the investor's profile. Continuous monitoring and rebalancing, in line with market changes and investment objectives, will be key to maintaining this optimization.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.60%
  • Avantis® Emerging Markets Value ETF 3.80%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Vanguard Total International Bond Index Fund ETF Shares 4.30%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.70%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 2.03%

The dividend yields across different components of the portfolio contribute to its overall return, with yields ranging from 1.20% to 4.30%. These dividends provide a steady income stream, which can be particularly valuable during market downturns or for investors seeking income. The total portfolio yield of 2.03% represents a balanced approach, capturing both growth and income elements. Regularly reviewing dividend policies and yields is essential for ensuring they continue to meet income and growth objectives.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Bond Index Fund ETF Shares 0.07%
  • 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) 0.06%

The Total Expense Ratio (TER) of 0.06% reflects a cost-efficient approach to portfolio management. Keeping costs low is crucial for enhancing long-term returns, as even small differences in fees can have a significant impact over time. The varied TERs across different ETFs highlight the importance of cost considerations in selecting investments. Periodic review of investment costs against performance and alternatives in the market can help in optimizing for cost-efficiency.

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