Balanced and highly diversified portfolio with a strong emphasis on stocks and global exposure
Report created on Nov 24, 2025Risk profile
4/7
Diversification profile
5/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 50.00% -
JA Janus Detroit Street Trust - Janus Henderson AAA CLO ETF
JAAA - US47103U8457 20.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 10.00%
This portfolio is characterized by a significant allocation to the Vanguard Total Stock Market Index Fund ETF Shares at 50%, indicating a broad exposure to the U.S. stock market. The inclusion of the Janus Henderson AAA CLO ETF and the Vanguard Total International Stock Index Fund ETF Shares, each constituting 20% of the portfolio, further diversifies the investment across different asset types and global markets. The Avantis® U.S. Small Cap Value ETF, making up 10%, adds a focus on value-driven small-cap U.S. stocks. This composition suggests a balanced approach, aiming for growth through diversified exposure to both domestic and international equities, with a smaller, yet meaningful, allocation towards fixed income via CLOs.
Growth
With a historical Compound Annual Growth Rate (CAGR) of 12.42% and a maximum drawdown of -21.26%, the portfolio demonstrates a strong performance with a relatively moderate level of risk. The days that make up 90% of the returns being only 23.0 indicates that the portfolio's gains are concentrated in a few significant trading days, a common characteristic of equity-heavy portfolios. This performance, balanced between risk and return, aligns well with the portfolio's balanced risk classification and highlights the benefits of diversification across asset classes and geographies.
Projection
Monte Carlo simulations, with 1,000 iterations, project a wide range of outcomes, emphasizing the uncertainty inherent in investing. The 50th percentile outcome at 394.1% growth is optimistic, yet the broad range to the 5th percentile at 68.4% growth underscores potential volatility. An annualized return of all simulations at 13.21% suggests that, while past performance is not indicative of future results, the portfolio has a solid foundation for growth. These projections are valuable for setting realistic expectations and preparing for various market conditions.
Asset classes
- Stocks 79%
- Bonds 20%
- Cash 1%
The portfolio's asset allocation leans heavily towards stocks (79%), with a smaller allocation to bonds (20%) and a minimal cash position (1%). This distribution supports a growth-oriented strategy while maintaining a cushion against market volatility through fixed income investments. The stock-heavy approach is suitable for investors with a moderate risk tolerance and a long-term investment horizon, as it offers the potential for higher returns at the expense of short-term fluctuations.
Sectors
- Technology 21%
- Financials 14%
- Consumer Discretionary 9%
- Industrials 9%
- Health Care 7%
- Telecommunications 6%
- Energy 4%
- Consumer Staples 4%
- Basic Materials 3%
- Real Estate 2%
- Utilities 2%
Sector allocation reveals a technology-heavy portfolio (21%), followed by significant investments in financial services (14%) and consumer cyclicals (9%). This sector composition is reflective of the current global economic drivers, with technology and finance sectors being pivotal. However, the concentration in these sectors may expose the portfolio to sector-specific risks, such as regulatory changes or economic downturns in these industries. Diversifying across a broader range of sectors could mitigate such risks.
Regions
- North America 61%
- Europe Developed 8%
- Asia Emerging 3%
- Japan 3%
- Asia Developed 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, the portfolio is predominantly invested in North America (61%), with diversified allocations across developed Europe (8%), Asia (emerging and developed totaling 6%), and smaller exposures to other regions. This geographic distribution enhances global exposure, tapping into different economic cycles and opportunities. However, the heavy North American concentration may warrant increased allocations to emerging markets and other developed regions for enhanced global diversification and potential for higher growth.
Market capitalization
- Mega-cap 30%
- Large-cap 21%
- Mid-cap 13%
- Small-cap 8%
- Micro-cap 6%
The market capitalization breakdown shows a balanced approach, with allocations to mega (30%), big (21%), medium (13%), small (8%), and micro (6%) cap stocks. This diversification across different market caps can help mitigate risk and capitalize on the growth potential of smaller companies while relying on the stability of larger, established corporations. Adjusting these allocations can fine-tune the portfolio's risk-return profile according to market conditions and investment goals.
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 portfolio's current allocation and performance, optimization using the Efficient Frontier could further enhance its risk-return profile. This method would identify the most efficient allocation of the current assets, aiming for the highest possible return for a given level of risk. While the portfolio already demonstrates a balanced approach, minor adjustments in asset allocation could potentially yield better performance without increasing the overall risk level significantly.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.70%
- Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 5.50%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 2.43%
The portfolio's dividend yield stands at an average of 2.43%, with the highest yield coming from the Janus Henderson AAA CLO ETF at 5.50%. Dividends contribute to the portfolio's total return, providing a steady income stream in addition to capital appreciation. For investors seeking both growth and income, maintaining or slightly increasing allocations to high-yielding assets could enhance the portfolio's income-generating capability without significantly altering its risk profile.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 0.21%
- 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) 0.09%
The portfolio's total expense ratio (TER) of 0.09% is impressively low, maximizing the potential for net returns. The Vanguard ETFs, known for their low costs, contribute to this efficiency. Keeping costs low is crucial for long-term investment success, as even small differences in fees can significantly impact compound returns over time. Investors should continue to prioritize cost efficiency when considering future adjustments or additions to the portfolio.
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