A balanced and highly diversified portfolio with a strong emphasis on stocks and global exposure

Report created on Aug 2, 2025

Risk 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

The portfolio primarily consists of two major ETFs focusing on the total stock market and international stocks, alongside a smaller allocation to ultra-short-term treasury bonds. This structure provides a broad exposure to global equity markets, with a 60% weighting in a total stock market ETF and 35% in an international stock ETF. The remaining 5% is allocated to short-term treasury bonds, offering a minimal buffer against market volatility. This composition suggests a strategic emphasis on growth through equities, balanced with a conservative allocation to cash equivalents for liquidity and risk management.

Growth Info

Historical performance showcases a Compound Annual Growth Rate (CAGR) of 14.07%, with a maximum drawdown of -25.44%. This performance indicates a strong growth trajectory, though not without significant volatility, as evidenced by the substantial drawdown. The days contributing to 90% of the returns being concentrated in just 24 days highlights the portfolio's susceptibility to short-term fluctuations. This underscores the importance of a long-term investment horizon and the potential benefits of staying invested through market cycles to capture key growth periods.

Projection Info

Utilizing Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of potential outcomes. With 996 out of 1,000 simulations generating positive returns, the median projected growth stands at 276.3%, suggesting a robust potential for long-term appreciation. However, it's crucial to remember that these projections are inherently uncertain and should be considered as one of many tools in making informed investment decisions.

Asset classes Info

  • Stocks
    94%
  • Cash
    6%

The asset allocation is heavily skewed towards stocks (94%), with a minor allocation to cash equivalents (6%) through short-term treasury bonds. This distribution underscores a growth-oriented strategy, leveraging the higher return potential of equities. However, the minimal allocation to less volatile assets like bonds or cash equivalents might limit the portfolio's ability to buffer against short-term market downturns, potentially increasing the overall risk.

Sectors Info

  • Technology
    23%
  • Financials
    17%
  • Industrials
    11%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Basic Materials
    3%
  • Energy
    3%
  • Real Estate
    3%
  • Utilities
    3%

Sector allocation reveals a significant emphasis on technology and financial services, constituting 40% of the portfolio. This concentration in sectors known for their growth potential and volatility could drive higher returns but also increases susceptibility to sector-specific risks. Diversifying across a wider range of sectors could help mitigate this risk while still capturing growth opportunities in the broader market.

Regions Info

  • North America
    63%
  • Europe Developed
    14%
  • Asia Emerging
    6%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic exposure is predominantly in North America (63%), with meaningful allocations to developed Europe and emerging Asian markets. This global diversification enhances the portfolio's growth potential by tapping into various economic cycles and market dynamics. However, the relatively lower exposure to emerging markets and specific regions like Latin America and Africa/Middle East may limit opportunities to capture high growth rates in these areas.

Market capitalization Info

  • Mega-cap
    40%
  • Large-cap
    29%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    1%

The market capitalization breakdown shows a strong tilt towards mega and big-cap stocks, which comprise 69% of the portfolio. This focus on larger companies, known for their stability and lower volatility, could provide a solid foundation for the portfolio. However, the relatively smaller allocation to mid, small, and micro-cap stocks may limit exposure to higher-growth opportunities often found in these segments.

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 Efficient Frontier analysis suggests that the portfolio could achieve a more optimal risk-return ratio with an expected return of 2.81% at the same risk level. This indicates room for improvement in asset allocation to enhance the portfolio's efficiency. Adjusting the current composition to better align with the Efficient Frontier could potentially increase returns without assuming additional risk.

Dividends Info

  • iShares® 0-3 Month Treasury Bond ETF 4.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.94%

The dividend yield across the portfolio averages 1.94%, with the treasury ETF providing a higher yield of 4.10%. While dividends contribute to the portfolio's total return, the primary focus appears to be on capital appreciation. Investors seeking regular income might consider increasing allocations to higher-yielding assets or sectors.

Ongoing product costs Info

  • iShares® 0-3 Month Treasury Bond ETF 0.07%
  • 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 a total Expense Ratio (TER) of just 0.04%, the portfolio benefits from low costs, which can significantly enhance long-term returns by minimizing the drag on performance. This efficiency is particularly advantageous in a growth-oriented portfolio, where every percentage point of return can compound significantly over time.

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