Balanced and diversified portfolio with a strong foundation in ETFs and global exposure

Report created on Aug 3, 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 around a core of three ETFs: 50% in a U.S. equity ETF, 25% in a corporate bond ETF, and 25% in an international stock ETF. This composition reflects a balanced approach, blending stock and bond investments to mitigate risk while aiming for growth. The heavy weighting towards the S&P 500 ETF signifies a strong reliance on U.S. equities for growth, whereas the corporate bond and international stock ETFs add diversification and potential for income, respectively. Comparing this to a typical balanced portfolio benchmark, the allocation aligns well with best practices for investors seeking a mix of growth and income with moderate risk.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 10%, with a maximum drawdown of -28.91%. The days contributing most significantly to returns highlight the portfolio's vulnerability to short-term market movements but also its resilience and capacity for recovery. When benchmarked against a balanced fund or a mixed asset class benchmark, this performance is commendable, demonstrating the portfolio's ability to navigate through market volatility while maintaining a strong growth trajectory. These figures underscore the importance of a long-term perspective and the benefits of staying invested through market cycles.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of possible outcomes, suggest a median annualized return of 9.02%, with a 95% chance of positive returns. This forward projection indicates a high probability of continued growth, albeit with inherent market risks. It's crucial to understand that these projections are based on past performance, which is not a reliable indicator of future results. Nonetheless, the simulation provides a useful tool for gauging potential risk and return, helping investors set realistic expectations for their portfolio's growth trajectory.

Asset classes Info

  • Stocks
    74%
  • Bonds
    25%
  • Cash
    1%

The portfolio's asset allocation—74% stocks, 25% bonds, and 1% cash—strikes a balance between growth potential and risk management. This allocation is in line with the portfolio's balanced risk profile, leveraging the growth potential of stocks while using bonds to mitigate volatility and provide income. The minimal cash holding suggests a fully invested stance, maximizing the portfolio's growth potential. For a balanced investor, this mix supports both capital appreciation and income generation, essential components for a diversified investment strategy.

Sectors Info

  • Technology
    20%
  • Financials
    13%
  • Consumer Discretionary
    8%
  • Industrials
    8%
  • Health Care
    7%
  • Telecommunications
    6%
  • Consumer Staples
    4%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation reveals a diversified yet focused investment strategy, with technology, financial services, and consumer cyclicals leading. This sector spread aligns with a growth-oriented but balanced approach, leveraging the potential of high-growth sectors while maintaining a foundation in more stable, dividend-yielding sectors. The portfolio's emphasis on technology and financial services is consistent with a bullish outlook on innovation and economic growth. However, investors should monitor sector concentrations to ensure alignment with their risk tolerance and market outlook, as sectors like technology can be more volatile.

Regions Info

  • North America
    52%
  • Europe Developed
    10%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is predominantly invested in North America (52%), with significant exposure to developed Europe and a modest allocation to emerging markets and other regions. This global distribution enhances diversification, potentially reducing risk and capturing growth across different economic cycles. However, the underrepresentation of emerging markets might limit exposure to high-growth regions. Balancing developed market stability with emerging market growth potential could further optimize risk-adjusted returns, especially for investors comfortable with additional volatility for higher growth prospects.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    25%
  • Mid-cap
    13%
  • Small-cap
    1%

The portfolio's market capitalization breakdown—34% mega, 25% big, 13% medium, 1% small, and 0% micro—indicates a conservative tilt towards larger, more established companies. This allocation supports stability and reduces volatility, aligning with the portfolio's balanced risk profile. However, the limited exposure to small and micro-cap stocks might constrain growth potential, as these segments can offer significant upside during bull markets. Investors might consider a slight increase in small or medium-cap exposure to enhance growth prospects, provided it aligns with their risk tolerance.

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.

Based on the Efficient Frontier analysis, this portfolio is well-positioned in terms of risk-return optimization. The current asset allocation offers a favorable balance between risk and potential returns, suggesting that the portfolio is efficiently constructed for its risk profile. However, continuous optimization is vital as market conditions evolve. Investors should periodically reassess their portfolio's position on the Efficient Frontier, adjusting the asset mix to maintain an optimal balance between risk and return, especially in response to significant life events or financial goal changes.

Dividends Info

  • SPDR® Portfolio S&P 500 ETF 1.20%
  • Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares 4.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 2.35%

The dividend yields from the ETFs—1.20% from the S&P 500 ETF, 4.10% from the corporate bond ETF, and 2.90% from the international stock ETF—contribute to the portfolio's income stream, complementing capital gains for a total yield of 2.35%. This income component is particularly valuable in a balanced portfolio, offering a steady cash flow that can be reinvested or used as income. For investors prioritizing income, the high yield from the corporate bond ETF is a key advantage, though it's essential to balance yield with the risk profile of the underlying assets.

Ongoing product costs Info

  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.03%

The portfolio benefits from exceptionally low costs, with a Total Expense Ratio (TER) averaging 0.03%. Low costs are crucial for long-term investment success, as they directly enhance net returns. This portfolio's cost efficiency is a significant strength, ensuring that more of the investment's returns are retained by the investor. Regularly reviewing and minimizing investment costs remains a best practice for all investors, reinforcing the importance of cost-conscious investment choices.

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