Balanced vanguard portfolio with strong diversification and efficient risk profile for steady long term growth
Report created on Apr 12, 2026Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
Positions
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VF VANGUARD 500 INDEX FUND ADMIRAL SHARES
VFIAX - US9229087104 32.37% -
VB Vanguard Balanced Index Fund Admiral Shares
VBIAX - US9219312009 22.38% -
VB Vanguard Total Bond Market Index Fund Admiral Shares
VBTLX - US9219376038 15.87% -
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 10.35% -
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 10.35% -
BN Vanguard Total Bond Market Index Fund ETF Shares
BND - US9219378356 8.68%
This portfolio is built almost entirely from broad Vanguard index funds, mixing US stocks, global stocks, and high‑quality bonds. The biggest piece is a US large‑cap fund, complemented by a balanced fund that already blends stocks and bonds, plus separate total stock, world stock, and bond funds. That structure creates a simple but layered core: a strong US tilt, some global diversification, and a clear ballast in bonds. Using low-cost index funds like these is a textbook way to build a core portfolio, because each fund holds hundreds or thousands of securities, spreading risk without needing a long list of individual positions.
Growth
Over the last decade, $1,000 in this portfolio grew to about $2,662, a compound annual growth rate (CAGR) of 10.35%. CAGR is like your average “speed” over the whole trip, smoothing out bumps along the way. The portfolio lagged both the US market and the global market, which is normal for a more conservative, bond‑heavy mix, but its worst drop was smaller at about -25.6% versus roughly -33% for the benchmarks. That shallower drawdown shows the downside cushion from bonds. Just keep in mind that past performance only shows how this mix handled previous conditions, not what it will earn in the future.
Projection
The Monte Carlo projection uses many random simulations based on historical patterns to estimate a range of possible 15‑year outcomes for $1,000. Think of it as rerunning history a thousand slightly different ways to see what could plausibly happen. The median outcome of about $2,508 implies a reasonable expected growth path, with most simulations landing between roughly $1,900 and $3,400. There are also more extreme but still possible outcomes on both the low and high ends. These projections are helpful for planning, but they rely on past returns and volatility; if future markets behave differently, actual results can be better or worse than this range.
Asset classes
- Stocks 67%
- Bonds 33%
The portfolio sits at roughly 67% stocks and 33% bonds, which lines up neatly with a classic “balanced” profile. Stocks are the main growth engine, while bonds act as a stabilizer, softening the impact of big stock market swings. This split is less aggressive than an all‑equity portfolio, but still growth‑oriented compared with very conservative mixes. For many investors with a medium to long horizon and moderate risk tolerance, something around two‑thirds in stocks is a sweet spot. It aims to capture good upside over time while keeping drawdowns more manageable than a 90–100% equity allocation.
Sectors
- Technology 24%
- Financials 10%
- Health Care 8%
- Telecommunications 8%
- Industrials 7%
- Consumer Discretionary 6%
- Consumer Staples 4%
- Energy 3%
- Consumer Discretionary 2%
- Utilities 2%
- Basic Materials 2%
- Real Estate 2%
This breakdown covers the equity portion of your portfolio only.
Sector exposure is led by technology at around 24%, with financials, health care, telecom, and industrials all playing meaningful roles, and smaller slices across consumer, energy, utilities, materials, and real estate. That pattern looks very similar to broad equity benchmarks, especially because US indices are tech‑heavy these days. A bigger tech weight usually means stronger participation when innovation and growth stocks lead, but also more sensitivity to interest rates and sentiment shifts. The good news is that the rest of the sectors are well represented, so the portfolio isn’t overly dependent on just one area of the economy.
Regions
- North America 71%
- No data 16%
- Europe Developed 2%
- Asia Emerging 1%
- Japan 1%
- Asia Developed 1%
This breakdown covers the equity portion of your portfolio only.
Geographically, the portfolio is anchored in North America at about 71%, with relatively small explicit allocations to Europe and Asia and some “no data” that likely reflects blended or unclassified exposures. This is broadly in line with global market capitalization, where US and North American companies dominate. A strong home‑region tilt can feel comfortable for many investors, especially those living and spending in dollars, because it reduces currency swings versus foreign holdings. Still, having at least some international exposure adds resilience if leadership rotates away from North America in future decades, which this portfolio already incorporates at a modest level.
Market capitalization
- Mega-cap 29%
- Large-cap 22%
- Mid-cap 12%
- Small-cap 2%
- Micro-cap 1%
This breakdown covers the equity portion of your portfolio only.
Most of the equity exposure sits in mega‑cap and large‑cap companies, with smaller allocations to mid, small, and micro caps. That’s typical for index funds that weight holdings by market size, so bigger companies naturally take up more space. Larger firms tend to be more stable, diversified businesses, which can mean smoother rides but sometimes slightly lower explosive upside compared with smaller companies. The presence of mid and small caps, even at modest levels, helps diversify growth drivers and can add extra return in periods when smaller firms outperform. Overall, this large‑cap anchor with a small‑cap sprinkle is a very standard, balanced structure.
True holdings
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NV NVIDIA Corporation 1.03%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
AA Apple Inc 0.97%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
MS Microsoft Corporation 0.73%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
AM Amazon.com Inc 0.50%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class A 0.45%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
AV Broadcom Inc 0.37%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class C 0.36%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
ME Meta Platforms Inc. 0.35%
Part of fund(s):- Vanguard Total Stock Market Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
TS Tesla Inc 0.28%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
- Vanguard Total World Stock Index Fund ETF Shares
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 0.14%
Part of fund(s):- Vanguard Total World Stock Index Fund ETF Shares
- Top 10 total 5.20%
Looking through the ETFs, the largest underlying exposures are to familiar mega‑cap names like NVIDIA, Apple, Microsoft, Amazon, and Alphabet, but each one is only about 0.3–1% of the total portfolio. That means no single company dominates your overall outcome, which is exactly what broad indexing is supposed to do. There is overlap, since the same giants appear across multiple index funds, but in this case that overlap is still modest at the portfolio level. Because the analysis only covers ETF top‑10 holdings, the true diversification is actually much broader than the numbers here suggest, which is a positive feature.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
Factor exposure here is mostly neutral across value, size, momentum, and quality, which means the portfolio behaves a lot like the broad market on those characteristics. What stands out is a high tilt toward low volatility and a mildly low tilt toward yield. Low‑volatility exposure means the underlying holdings tend to swing less than the overall market, aligning nicely with the balanced risk profile. That can help reduce emotional pressure during sharp sell‑offs. The lower yield tilt simply reflects that the equity side is more growth‑oriented than income‑focused, so total return is expected to come more from price growth than from dividends.
Risk contribution
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VANGUARD 500 INDEX FUND ADMIRAL SHARES
Weight: 32.37% 47.6% -
Vanguard Balanced Index Fund Admiral Shares
Weight: 22.38% 20.7% -
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 10.35% 15.5% -
Vanguard Total World Stock Index Fund ETF Shares
Weight: 10.35% 14.3% -
Vanguard Total Bond Market Index Fund ETF Shares
Weight: 8.68% 1.1% - Top 5 risk contribution 99.2%
Risk contribution shows how much each holding drives overall ups and downs, which can differ from its weight. Here, the S&P 500 fund is about a third of the portfolio but contributes almost half of total risk, and together with the balanced fund and total US stock ETF, the top three positions generate nearly 84% of the risk. That concentration in a few broad equity funds is expected for a simple index portfolio, but it’s useful to be aware that shifts in US stocks will largely dictate performance. If someone wanted to tweak the feel of the ride, they’d adjust those big building blocks rather than the smaller bond pieces.
Redundant positions
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High correlationVanguard Total World Stock Index Fund ETF SharesVANGUARD 500 INDEX FUND ADMIRAL SHARESVanguard Total Stock Market Index Fund ETF SharesVanguard Balanced Index Fund Admiral Shares
The core stock and balanced funds in this portfolio are highly correlated, meaning they tend to move in the same direction at roughly the same time. Correlation is a measure of how similarly two investments behave; when it’s very high, they don’t add much diversification against each other during market shocks. Here, the S&P 500, total US stock, world stock, and balanced funds all move closely together, reflecting their broad equity nature. The main diversifier is the bond sleeve, which historically reacts differently when stocks fall. This is a classic “two‑engine” design: one cluster of correlated stock funds plus a distinct bond ballast.
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.
On the risk‑return chart, the current portfolio sits right on or very near the efficient frontier, meaning it’s making very good use of the existing holdings for its chosen risk level. The Sharpe ratio of 0.49, which measures return per unit of volatility above the risk‑free rate, is lower than the maximum Sharpe configuration but aligned with a more moderate risk profile. In other words, you’re not pushing risk as high as possible, but within this comfort zone, the mix is efficient. The data suggests that, for the current set of funds, the allocation is already well tuned rather than leaving obvious improvement on the table.
Dividends
- Vanguard Total Bond Market Index Fund ETF Shares 3.90%
- Vanguard Balanced Index Fund Admiral Shares 5.60%
- Vanguard Total Bond Market Index Fund Admiral Shares 3.90%
- VANGUARD 500 INDEX FUND ADMIRAL SHARES 1.10%
- Vanguard Total World Stock Index Fund ETF Shares 1.70%
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Weighted yield (per year) 2.86%
The overall dividend yield of about 2.86% blends stock dividends with bond interest, with the balanced and bond funds providing the highest income percentages. Yield is the cash paid out each year as a share of the investment’s value, which can be used for spending or reinvested for compounding. In this setup, the equity side has relatively modest yields, consistent with broad market indices, while the bond funds add a firmer income floor. For investors who don’t need current cash flow, automatically reinvesting these distributions is a straightforward way to steadily grow the portfolio’s base over time.
Ongoing product costs
- Vanguard Total Bond Market Index Fund ETF Shares 0.03%
- Vanguard Balanced Index Fund Admiral Shares 0.07%
- Vanguard Total Bond Market Index Fund Admiral Shares 0.04%
- VANGUARD 500 INDEX FUND ADMIRAL SHARES 0.04%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Weighted costs total (per year) 0.05%
The total expense ratio (TER) of this portfolio is about 0.05%, which is extremely low by any standard. TER is the annual percentage fee charged by the funds to cover management and operating costs. Keeping fees this low is a big structural win, because every dollar not spent on costs stays invested and compounds. Over long horizons, even small fee differences can add up to thousands of dollars. Here, the use of Vanguard index funds is working exactly as intended: delivering broad diversification and market‑like returns while keeping the “drag” from expenses impressively minimal. That’s a solid cornerstone for long‑term investing.
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