Balanced and highly diversified portfolio with a strategic mix of stocks and bonds

Report created on Aug 8, 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 well-thought-out structure, allocating 85% to stocks and 15% to bonds, indicating a balanced approach towards growth and stability. The significant stake in the Vanguard S&P 500 ETF suggests a strong foundation in U.S. large-cap equities, complemented by diversified exposure through international, emerging markets, and high dividend ETFs. This blend not only seeks growth through equities but also aims for income generation and risk mitigation through bonds and dividends.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 11.14%, with a maximum drawdown of -31.28%. This performance is indicative of a balanced risk-return profile, capable of delivering solid returns while experiencing notable volatility. The days contributing to 90% of returns highlight the impact of short-term market movements, underscoring the importance of a long-term investment horizon to navigate through market fluctuations effectively.

Projection Info

Monte Carlo simulations, which project future outcomes based on historical data, show a wide range of potential returns, with a median increase of 239.4%. While these projections offer insight into possible future scenarios, it's crucial to remember that past performance is not a reliable indicator of future results. Such simulations are valuable for understanding potential volatility and planning for various market conditions.

Asset classes Info

  • Stocks
    85%
  • Bonds
    15%

The portfolio's asset allocation—85% stocks and 15% bonds—strikes a balance between growth potential and risk mitigation. This allocation is suitable for a balanced risk profile, aiming to capture equity market gains while using bonds to cushion against market downturns. Adjusting this mix can further align the portfolio with changing risk tolerance or financial goals over time.

Sectors Info

  • Technology
    22%
  • Financials
    16%
  • Consumer Discretionary
    8%
  • Industrials
    7%
  • Consumer Staples
    6%
  • Health Care
    6%
  • Telecommunications
    6%
  • Energy
    4%
  • Real Estate
    4%
  • Utilities
    4%
  • Basic Materials
    3%

Sector allocation reveals a tech-heavy emphasis, followed by significant investments in financial services and a diversified spread across other sectors. This composition reflects a modern growth-oriented strategy but comes with sector-specific risks, such as volatility in tech stocks. Diversifying across more sectors or rebalancing in response to market changes could further optimize risk and return.

Regions Info

  • North America
    55%
  • Europe Developed
    9%
  • Asia Emerging
    7%
  • Asia Developed
    6%
  • Japan
    3%
  • Africa/Middle East
    2%
  • Latin America
    1%
  • Australasia
    1%

Geographic exposure is predominantly in North America, with meaningful positions in developed European markets, emerging Asia, and other regions. This global diversification enhances the portfolio's growth potential by tapping into different economic cycles and market dynamics. However, the relatively lower exposure to emerging markets and certain developed regions might limit diversification benefits and growth opportunities in high-growth areas.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    29%
  • Mid-cap
    14%
  • Small-cap
    3%

The portfolio's market capitalization exposure leans heavily towards mega and big-cap stocks, which typically offer stability and lower volatility compared to smaller companies. This is appropriate for a balanced investment strategy but may limit exposure to the high-growth potential of mid and small-cap stocks. Introducing a broader range of market caps could enhance growth prospects and diversification.

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 portfolio's current allocation suggests it is near the Efficient Frontier, indicating an optimal risk-return balance based on historical data. However, continuous monitoring and occasional rebalancing are essential to maintain this efficiency, especially as market conditions and personal financial goals evolve.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Fidelity® High Dividend ETF 3.10%
  • iShares Core MSCI Emerging Markets ETF 3.00%
  • Schwab International Equity ETF 2.50%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 2.44%

The portfolio's focus on dividend-yielding ETFs contributes to its income generation capabilities, with a total dividend yield of 2.44%. This approach not only provides a steady income stream but also offers potential for reinvestment and compounding growth. Investors might consider the role of dividends in their overall investment strategy, balancing income generation with growth potential.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Fidelity® High Dividend ETF 0.15%
  • iShares Core MSCI Emerging Markets ETF 0.09%
  • Schwab International Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.07%

With a total expense ratio (TER) of 0.07%, the portfolio benefits from relatively low costs, which can significantly enhance long-term returns. Keeping costs low is a fundamental principle of successful investing, as high fees can erode returns over time. This portfolio exemplifies cost efficiency, leveraging the benefits of low-cost ETFs.

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