A balanced growth-oriented portfolio with a strong focus on global equities and low costs

Report created on Jul 31, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio, comprising 75% Vanguard Total Stock Market Index Fund ETF Shares and 25% Vanguard Total International Stock Index Fund ETF Shares, showcases a strategic emphasis on equities with a balanced geographical spread. The allocation leans heavily towards North American stocks (77%), complemented by a diversified international exposure. Such a composition aligns with a balanced risk profile, aiming to capture growth across both established and emerging markets. The singular focus on stock ETFs, coupled with minimal cash holdings, positions this portfolio for investors seeking growth while maintaining a moderate risk tolerance.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 12.43%, with a significant drawdown of -34.65%. The drawdown indicates a period of substantial value decrease, which is an essential consideration for risk assessment. Notably, a small number of days (27) contributed to the majority of returns, underscoring the volatility and the importance of staying invested through market cycles. This performance, juxtaposed with the portfolio's balanced risk classification, suggests a favorable return profile for a moderately risk-tolerant investor.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of possible outcomes, predict an annualized return of 11.53% for this portfolio. The simulations show a wide range of potential outcomes, from a low 5th percentile increase of 22.9% to a high 67th percentile increase of 410.5%. Such projections are helpful in setting realistic expectations, though it's crucial to remember that past performance is not indicative of future results. These projections should be viewed as one of many tools in making informed investment decisions.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's allocation is almost entirely in stocks (99%), with a minimal cash position (1%), reflecting a clear growth orientation. This asset class distribution supports a higher potential for growth compared to portfolios with significant allocations in bonds or other lower-risk assets. However, it also implies higher volatility and risk, particularly in market downturns. Investors should consider their comfort with these risks, especially if they are approaching a financial goal or have a lower risk tolerance.

Sectors Info

  • Technology
    27%
  • Financials
    16%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    3%
  • Utilities
    3%

Sector allocation is heavily tilted towards Technology (27%), Financial Services (16%), and Industrials (11%), with other sectors like Healthcare and Consumer Cyclicals also having significant representations. This sectoral distribution reflects a growth-focused strategy but also introduces sector-specific risks. For example, the technology sector's high volatility in response to market changes can affect portfolio stability. Diversifying across sectors can mitigate such risks, although this portfolio already exhibits a broad sectoral spread.

Regions Info

  • North America
    77%
  • Europe Developed
    10%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

With 77% of assets in North America and a diversified international presence, the portfolio benefits from global growth opportunities while remaining anchored in the stability of developed markets. The international exposure includes developed Europe, emerging Asia, and other regions, offering a balance between high-growth potential and geopolitical risk management. This geographic distribution enhances diversification, reducing the impact of regional downturns on the overall portfolio performance.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    31%
  • Mid-cap
    19%
  • Small-cap
    6%
  • Micro-cap
    2%

The portfolio's market capitalization breakdown shows a preference for large-cap stocks (Mega 42%, Big 31%), with a smaller allocation towards mid (Medium 19%), small (Small 6%), and micro-caps (Micro 2%). This skew towards larger companies is consistent with the portfolio's balanced risk profile, as these entities typically offer more stability and less volatility than their smaller counterparts. However, including smaller companies could provide higher growth potential and further diversification benefits.

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, which aims to maximize returns for a given level of risk, this portfolio appears well-positioned. Its current allocation between domestic and international equities offers a balanced risk-return profile. However, ongoing review and potential rebalancing could further optimize its position on the Efficient Frontier, ensuring that the portfolio continues to align with the investor's risk tolerance and financial goals while maximizing potential returns.

Dividends Info

  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.60%

The portfolio offers a total dividend yield of 1.60%, with the international component contributing a higher yield (2.80%) compared to the domestic one (1.20%). While the focus is on growth, dividends provide a stream of income, contributing to the total return and offering some cushion during market dips. For investors valuing income alongside growth, this yield is a modest but valuable component of the portfolio's total performance.

Ongoing product costs Info

  • 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%

With an overall expense ratio of 0.04%, this portfolio stands out for its cost efficiency, significantly lower than many actively managed funds and even some passive investment options. Lower costs translate directly into higher net returns for investors, making this portfolio an attractive option for cost-conscious individuals. The emphasis on low-cost ETFs is a strategic advantage, enhancing long-term growth potential without sacrificing performance.

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