A balanced and highly diversified portfolio with strong exposure to global equities and bonds

Report created on Aug 1, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio showcases a strategic allocation across major asset classes with a dominant 80% in stocks and 20% in bonds, mirroring a balanced risk profile. The substantial stake in the iShares Core S&P 500 ETF underscores a strong bias towards U.S. equities, complemented by significant international diversification through the iShares Core MSCI International Developed Market and Emerging Markets ETFs. This structure is designed to capture growth in both developed and emerging markets while maintaining a foundation in stable, income-generating bonds.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 10.36%, the portfolio has demonstrated robust growth. The Max Drawdown of -29.12% indicates a period of significant value decline, but the overall high percentage of days contributing to positive returns underscores resilience. This performance, balanced between growth and risk, suggests a well-structured approach to capturing market upside while mitigating downturns.

Projection Info

Monte Carlo simulations, using historical data to project future outcomes, indicate a wide range of potential returns. With 90% of simulations resulting in positive returns, the median projected growth is substantial. However, it's crucial to remember that these projections are speculative, emphasizing the importance of ongoing risk management and diversification to navigate uncertainty.

Asset classes Info

  • Stocks
    80%
  • Bonds
    20%

The 80/20 split between stocks and bonds in this portfolio is a classic balanced investment strategy, aiming for growth through equities while using bonds to reduce volatility. This allocation is particularly suited to investors with a medium-risk tolerance, looking for growth but wary of the market's ups and downs. The absence of alternative assets like real estate or commodities suggests a focus on traditional investments, which could be diversified further to manage risk.

Sectors Info

  • Technology
    20%
  • Financials
    14%
  • Industrials
    10%
  • Consumer Discretionary
    8%
  • Health Care
    7%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Basic Materials
    3%
  • Energy
    3%
  • Real Estate
    2%
  • Utilities
    2%

The sector allocation leans heavily towards Technology and Financial Services, reflecting common trends in global equity markets. This concentration captures the growth potential of these sectors but also exposes the portfolio to sector-specific risks. Diversifying more evenly across sectors could mitigate this risk, potentially smoothing out returns over time.

Regions Info

  • North America
    67%
  • Europe Developed
    13%
  • Japan
    5%
  • Asia Emerging
    4%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

With 67% in North America and substantial allocations to developed and emerging international markets, the portfolio benefits from global diversification. This geographic spread helps to mitigate risks associated with any single market and capitalizes on growth opportunities worldwide. However, the relatively low exposure to emerging markets and certain developed regions suggests potential areas for further diversification.

Market capitalization Info

  • Mega-cap
    36%
  • Large-cap
    25%
  • Mid-cap
    14%
  • Small-cap
    4%
  • Micro-cap
    1%

The focus on Mega and Big cap stocks aligns with the portfolio's balanced risk profile, favoring stability and lower volatility associated with larger, well-established companies. However, the modest allocation to Medium, Small, and Micro caps offers room to enhance growth potential and diversification, albeit with increased risk.

Redundant positions Info

  • iShares Core S&P Mid-Cap ETF
    iShares Core S&P Small-Cap ETF
    High correlation

The observed high correlation between the iShares Core S&P Mid-Cap ETF and the iShares Core S&P Small-Cap ETF indicates overlapping investments that may not contribute significantly to diversification. Reducing exposure to one or both could streamline the portfolio and potentially enhance risk-adjusted returns by reallocating to less correlated assets.

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.

The recommendation to address highly correlated assets for optimization is well-founded. By reallocating from overlapping investments to more diversified options, the portfolio can achieve a more efficient risk-return profile. This step is essential in refining the portfolio's composition to ensure that each asset contributes uniquely to overall performance.

Dividends Info

  • iShares Core International Aggregate Bond ETF 4.20%
  • iShares Core MSCI International Developed Market 3.00%
  • iShares Core MSCI Emerging Markets ETF 3.10%
  • iShares Core S&P Mid-Cap ETF 1.40%
  • iShares Core S&P Small-Cap ETF 2.20%
  • iShares Core Total USD Bond Market ETF 4.10%
  • iShares Core S&P 500 ETF 1.30%
  • Weighted yield (per year) 2.44%

The portfolio's dividend yield of 2.44% contributes to its total return, providing a steady income stream in addition to potential capital gains. This yield, particularly from the bond ETFs, underscores the portfolio's balanced approach, offering both growth prospects and income generation.

Ongoing product costs Info

  • iShares Core International Aggregate Bond ETF 0.07%
  • iShares Core MSCI International Developed Market 0.04%
  • iShares Core MSCI Emerging Markets ETF 0.09%
  • iShares Core S&P Mid-Cap ETF 0.05%
  • iShares Core S&P Small-Cap ETF 0.06%
  • iShares Core Total USD Bond Market ETF 0.06%
  • iShares Core S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.04%

With an average Total Expense Ratio (TER) of 0.04%, the portfolio benefits from low costs, maximizing the investor's returns. Lower costs are crucial for long-term growth, as they compound over time, significantly impacting net returns. This portfolio's focus on low-cost ETFs is a commendable strategy for efficient investing.

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