A cautious yet highly diversified portfolio with a strong emphasis on stability and global exposure

Report created on Jul 19, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio exhibits a robust structure, primarily allocated across three Vanguard ETFs: 50% in Total Stock Market, 30% in Total Bond Market, and 20% in Total International Stock. Such a composition underscores a cautious approach to investing, balancing equity and bond investments to mitigate risk while still aiming for growth. The significant allocation to bonds, particularly, aligns well with a conservative risk profile, providing a cushion against market volatility.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 9.01%, with a maximum drawdown of -26.60%. This performance indicator is crucial as it reflects not just the average returns but also the potential for significant losses. The days contributing most to returns highlight the importance of staying invested over the long term, despite short-term market fluctuations.

Projection Info

Monte Carlo simulations, which generate a range of outcomes based on historical data, suggest a median future growth of 150.4% with a 7.85% annualized return across all simulations. It's important to note, however, that while these projections provide a useful risk assessment tool, they are based on past performance, which is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    69%
  • Bonds
    30%
  • Cash
    1%

The allocation to 69% stocks and 30% bonds is a testament to a balanced approach, aiming to capture growth through equities while using bonds to reduce overall portfolio volatility. This blend is particularly suitable for investors with a moderate risk tolerance, looking to achieve long-term growth without exposure to excessive risk.

Sectors Info

  • Technology
    18%
  • Financials
    12%
  • Industrials
    8%
  • Consumer Discretionary
    7%
  • Health Care
    7%
  • Telecommunications
    6%
  • Consumer Staples
    4%
  • Energy
    2%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Utilities
    2%

Sector-wise, the portfolio is well-diversified, with the highest allocations in technology, financial services, and industrials. This diversification helps to mitigate sector-specific risks. However, the heavy tilt towards technology could lead to higher volatility, given the sector's sensitivity to market changes.

Regions Info

  • North America
    51%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is predominantly invested in North America (51%), with diversified exposure across developed Europe, Asia, and other regions. This global allocation enhances diversification, reducing the impact of regional economic downturns on the portfolio's overall performance.

Market capitalization Info

  • Mega-cap
    29%
  • Large-cap
    21%
  • Mid-cap
    13%
  • Small-cap
    4%
  • Micro-cap
    1%

The exposure across market capitalizations—29% mega, 21% big, 13% medium, 4% small, and 1% micro—indicates a bias towards larger, more established companies. This strategy is likely to offer stability and lower volatility, which is consistent with a cautious investment approach.

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.

Given the portfolio's current allocation, it appears well-positioned on the Efficient Frontier, indicating an optimal balance between risk and return based on historical data. However, continuous review is necessary to ensure this balance is maintained as market conditions evolve.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 2.30%

The dividend yields from the ETFs—3.80% from bonds, 1.20% from US stocks, and 2.80% from international stocks—contribute to the portfolio's total yield of 2.30%. This income can be a significant source of returns, especially in a low-growth environment, and adds to the portfolio's appeal for income-focused investors.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • 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) 0.03%

With an overall Total Expense Ratio (TER) of 0.03%, the portfolio is cost-efficient, which is crucial for maximizing long-term returns. Lower costs mean more of the investment's return is kept by the investor, a key factor in portfolio performance over time.

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