Balanced and diversified portfolio with a cautious risk profile and low costs

Report created on Aug 26, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio showcases a well-thought-out blend of funds, focusing on a mix of income, growth, and conservative strategies. The presence of both stock and bond funds, with a slight tilt towards equities, suggests a balanced approach designed to mitigate risk while seeking growth. The inclusion of short-term investment-grade and international growth funds further diversifies the portfolio, spreading risk across various asset classes and geographic regions.

Growth Info

Historically, the portfolio has delivered a Compound Annual Growth Rate (CAGR) of 6.87%, with a maximum drawdown of -25.69%. This performance indicates a relatively stable growth trajectory, balanced by the cushioning effect of bonds during market downturns. The days contributing most to returns highlight the portfolio's resilience and potential for recovery after market dips.

Projection Info

Monte Carlo simulations, with 1,000 iterations, suggest a wide range of potential outcomes, emphasizing the uncertainty inherent in investing. The median projection of a 148.7% return is encouraging but should be viewed with caution. These simulations are based on historical data, which, as the saying goes, is not always indicative of future performance. The positive return in 938 out of 1,000 simulations, however, does provide some confidence in the portfolio's ability to grow wealth over time.

Asset classes Info

  • Stocks
    58%
  • Bonds
    40%
  • Cash
    2%

The asset allocation—58% in stocks, 40% in bonds, and 2% in cash—aligns with a cautious to moderate risk tolerance. This composition supports a balanced growth strategy, with bonds offering stability and stocks providing growth potential. The minimal cash holding suggests an efficient use of capital, though it's essential to maintain some liquidity for unforeseen needs.

Sectors Info

  • Technology
    16%
  • Financials
    14%
  • Industrials
    11%
  • Health Care
    10%
  • Consumer Discretionary
    9%
  • Consumer Staples
    6%
  • Energy
    4%
  • Telecommunications
    4%
  • Utilities
    4%
  • Real Estate
    3%
  • Basic Materials
    3%

Sectoral allocation is broadly diversified, with a heavier emphasis on technology and financial services. This sectoral spread is consistent with a growth-oriented strategy, though the significant weight in technology could expose the portfolio to higher volatility. Diversification across other sectors like industrials, healthcare, and consumer goods adds resilience against sector-specific downturns.

Regions Info

  • North America
    63%
  • No data
    14%
  • Europe Developed
    12%
  • Asia Emerging
    4%
  • Japan
    3%
  • Asia Developed
    2%
  • Latin America
    1%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographic diversification is strong, with a primary focus on North America but meaningful exposure to developed European markets and emerging Asian economies. This global footprint enhances the portfolio's growth potential while spreading geopolitical and currency risks. The unknown 14% allocation may warrant further investigation to ensure it aligns with the investor's risk tolerance and goals.

Market capitalization Info

  • Mid-cap
    20%
  • Mega-cap
    16%
  • Large-cap
    13%
  • Small-cap
    7%
  • Micro-cap
    1%

The market capitalization breakdown—medium to mega-cap focus—indicates a preference for established companies with potential for steady growth. The presence of small and micro-cap investments, though minimal, introduces higher growth potential albeit with increased volatility. This balance supports a strategy aiming for growth while managing risk.

Redundant positions Info

  • VANGUARD SMALL-CAP INDEX FUND ADMIRAL SHARES
    VANGUARD MID-CAP INDEX FUND ADMIRAL SHARES
    High correlation

The high correlation between the small-cap and mid-cap index funds suggests redundancy, which could limit diversification benefits. Identifying and addressing overlapping investments can enhance portfolio efficiency by reducing unnecessary exposure to similar risk factors.

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, there's room for optimization by addressing the high correlation between certain assets. Removing or reducing overlap can improve the portfolio's risk-return profile, potentially moving it closer to the frontier for a more efficient allocation.

Dividends Info

  • VANGUARD LIFESTRATEGY GROWTH FUND INVESTOR SHARES 1.30%
  • VANGUARD SHORT-TERM INVESTMENT-GRADE FUND ADMIRAL SHARES 3.70%
  • VANGUARD MID-CAP INDEX FUND ADMIRAL SHARES 1.10%
  • VANGUARD LIFESTRATEGY CONSERVATIVE GROWTH FUND INVESTOR SHARES 2.40%
  • VANGUARD SMALL-CAP INDEX FUND ADMIRAL SHARES 1.00%
  • VANGUARD WELLESLEY INCOME FUND ADMIRAL SHARES 2.70%
  • VANGUARD INTERNATIONAL GROWTH FUND INVESTOR SHARES 0.70%
  • Weighted yield (per year) 2.03%

The overall dividend yield of 2.03% contributes to the portfolio's income stream, complementing capital gains as a source of return. This yield, while not exceptionally high, indicates a balanced approach to generating income without compromising growth potential.

Ongoing product costs Info

  • VANGUARD LIFESTRATEGY GROWTH FUND INVESTOR SHARES 0.14%
  • VANGUARD SHORT-TERM INVESTMENT-GRADE FUND ADMIRAL SHARES 0.09%
  • VANGUARD MID-CAP INDEX FUND ADMIRAL SHARES 0.05%
  • VANGUARD LIFESTRATEGY CONSERVATIVE GROWTH FUND INVESTOR SHARES 0.12%
  • VANGUARD SMALL-CAP INDEX FUND ADMIRAL SHARES 0.05%
  • VANGUARD WELLESLEY INCOME FUND ADMIRAL SHARES 0.16%
  • VANGUARD INTERNATIONAL GROWTH FUND INVESTOR SHARES 0.37%
  • Weighted costs total (per year) 0.14%

With a total Expense Ratio (TER) of 0.14%, the portfolio is cost-efficient, maximizing the investor's return potential over time. Lower costs are crucial for long-term investment success, as they directly enhance net returns by reducing the drag on performance.

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