A balanced low cost portfolio tilted to US growth with strong diversification and moderate volatility

Report created on Dec 25, 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 is built mainly from broad stock index funds, with a noticeable tilt to growth and a small bond anchor. Around half is in a total US stock fund, a fifth in international stocks, a chunk in a growth-heavy ETF, and about a tenth in intermediate government bonds. That mix lines up well with a “balanced but growth-focused” profile, where most of the engine is stocks but bonds help smooth the ride. This structure is well-balanced and aligns closely with global standards. One tweak to consider is whether the extra growth tilt adds more risk than you actually want relative to a simpler all‑market stock plus bond mix.

Growth Info

Historically, this mix has delivered a very strong compound annual growth rate (CAGR) of about 14%. CAGR is like your average speed on a long road trip, smoothing out the ups and downs to show overall pace. A -30% max drawdown indicates that in rough markets the portfolio can still fall sharply, though this is milder than a pure aggressive stock portfolio. Compared with common balanced benchmarks, both growth and drawdowns look on the high side, which fits a growth‑leaning profile. While this track record is impressive, it’s crucial to remember that past performance does not guarantee future returns, especially after such a strong decade for growth‑oriented assets.

Projection Info

The forward projection uses Monte Carlo simulation, which basically runs thousands of “what if” market paths using historical patterns of returns and volatility. It shows a median outcome of roughly tripling to quadrupling value over the horizon, with even the pessimistic 5th percentile still modestly ahead. The average simulated annual return around 13% is very strong and signals high growth potential. But Monte Carlo relies on the past as a guide, so if future conditions are very different, results can diverge a lot. Treat these numbers as a rough map, not a promise. It can help to mentally plan around the weaker scenarios rather than only the median or best cases.

Asset classes Info

  • Stocks
    89%
  • Bonds
    10%
  • Cash
    1%

The portfolio holds about 89% in stocks, 10% in bonds, and a tiny slice in cash. That’s closer to an aggressive allocation than a classic 60/40 balanced portfolio, which explains both the high historical return and the meaningful drawdowns. The strong stock focus is great for long‑term growth but may feel uncomfortable in deep bear markets. This allocation is well-balanced and aligns closely with global standards for growth‑oriented investors. If stability or shorter‑term spending needs are important, nudging the bond share higher or adding more defensive assets could smooth volatility, while long‑horizon investors comfortable with swings might intentionally keep this growth‑heavy tilt.

Sectors Info

  • Technology
    28%
  • Financials
    12%
  • Telecommunications
    9%
  • Industrials
    8%
  • Consumer Discretionary
    8%
  • Health Care
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%
  • Consumer Discretionary
    2%

Sector exposure is broad, covering all major areas of the economy, but with a clear tilt toward technology and related growth areas. Tech and communication services combined make up a large slice, with financials, industrials, healthcare, and consumer sectors also well represented. This portfolio’s sector composition matches benchmark data, which is a strong indicator of diversification. The tech and growth tilt can be a big tailwind when innovation‑driven companies lead, but it also raises sensitivity to interest rate hikes or sentiment shifts away from growth. It can help to consider whether this heavier growth flavor fits your comfort level during potential periods of sharper volatility.

Regions Info

  • North America
    71%
  • Europe Developed
    8%
  • Japan
    3%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is strongly anchored in North America with about 70% exposure, while still holding meaningful stakes in Europe, Japan, and emerging regions. That US‑heavy skew is very common among American investors and has been rewarded over the last decade, as US markets have outperformed many others. This allocation is well-balanced and aligns closely with global standards, though global market weights would lean somewhat more to non‑US stocks. The international share here offers helpful diversification, since foreign markets don’t always move in lockstep with the US. If you want to dial down reliance on the US, gradually boosting non‑US exposure could smooth country‑specific risks.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    28%
  • Mid-cap
    16%
  • Small-cap
    4%
  • Micro-cap
    1%

By market cap, the portfolio leans heavily into mega and large companies, with moderate exposure to mid caps and smaller positions in small and micro caps. That pattern closely mirrors broad index benchmarks, which are naturally dominated by the biggest firms. Large companies tend to be more stable and diversified businesses, which can soften the blow during downturns compared with a small‑cap‑heavy approach. The modest small and micro‑cap slice adds a bit of extra growth potential and diversification. If you ever want to tilt more aggressively, intentionally adding more smaller companies could increase return potential, but it would also intensify volatility and tracking error versus broad markets.

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.

On a risk‑return basis, this portfolio already sits in a pretty efficient zone, given its strong historical returns relative to its drawdowns. The “Efficient Frontier” is a curve showing the best possible trade‑off between risk and return using a given set of assets—like picking the fastest car for a given amount of fuel. Within these same funds, it may be possible to slightly improve efficiency by fine‑tuning how much is in bonds versus stocks or trimming the extra growth tilt if volatility feels too high. Efficiency here is purely about risk per unit of return, not about income needs, taxes, or personal preferences.

Dividends Info

  • Fidelity Total Market Index Fund 1.00%
  • Invesco QQQ Trust 0.30%
  • Vanguard Intermediate-Term Treasury Index Fund ETF Shares 3.80%
  • Weighted yield (per year) 0.98%

The overall dividend yield is just under 1%, reflecting a focus on growth rather than income. The stock funds, especially the growth‑oriented ETF, pay relatively low yields, while the Treasury fund has the highest payout. This design fits investors who care more about total return (price gains plus dividends) than about current cash flow. For long‑term compounding, reinvested dividends can still add meaningful value even at lower yields. If steady income is a key goal, shifting part of the portfolio toward higher‑yielding assets or gradually raising the bond and income‑oriented slice over time could support more predictable cash flows without abandoning growth entirely.

Ongoing product costs Info

  • Fidelity Total Market Index Fund 0.02%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.06%
  • Invesco QQQ Trust 0.20%
  • Vanguard Intermediate-Term Treasury Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.06%

The portfolio’s costs are impressively low, with a blended expense ratio around 0.06%. Expense ratio is the annual fee charged by funds as a percentage of your investment, similar to a small “management toll.” Keeping this toll tiny is a major advantage, because even a 0.5–1.0% difference in fees can snowball into a big gap in long‑term wealth. Your mix of broad index funds and a relatively low‑cost growth ETF is very cost‑efficient and strongly supports better long‑term performance. From a cost perspective, there’s little to fix here; the main focus can stay on allocation and risk rather than hunting for meaningful fee improvements.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey