This portfolio has only about 10 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

Balanced and Highly Diversified Portfolio with Strong Historical Performance and Low Costs

Report created on Jul 28, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is composed of a mix of ETFs, with a significant allocation to both equity and bond funds. The largest positions are in the Vanguard FTSE Developed Markets Index Fund ETF and the Vanguard Total Stock Market Index Fund ETF, making up about 37% of the total portfolio. This high diversification reduces the risk associated with individual investments. However, it is essential to regularly review the portfolio to ensure it aligns with long-term financial goals and risk tolerance.

Growth Info

Historically, the portfolio has performed well with a CAGR of 7.29%. The maximum drawdown was -28.97%, indicating some periods of significant decline. However, the portfolio has shown resilience, recovering from downturns and providing steady growth over time. This performance suggests that the portfolio is well-constructed for balanced risk and return. Monitoring historical performance helps in understanding how the portfolio might behave in different market conditions and aids in setting realistic expectations.

Projection Info

Using a Monte Carlo simulation, which generates numerous potential future outcomes based on historical data, the portfolio's projected annualized return is 7.5%. The simulation shows a wide range of potential outcomes, with the 5th percentile at 4.12% and the 67th percentile at 213.42%. This indicates a high probability of positive returns, but also highlights the uncertainty inherent in investing. Such projections are useful for planning, helping investors understand potential future performance and prepare for various scenarios.

Asset classes Info

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

The portfolio is predominantly invested in stocks (69%) and bonds (30%), with minimal allocations to cash and other assets. This mix is typical for a balanced portfolio, aiming for growth through equities while mitigating risk with bonds. The allocation reflects a moderate risk tolerance, balancing the desire for capital appreciation with the need for income and stability. Regularly reassessing asset allocation ensures that it remains aligned with investment goals and risk tolerance.

Sectors Info

  • Technology
    13%
  • Financials
    12%
  • Industrials
    9%
  • Health Care
    7%
  • Consumer Discretionary
    7%
  • Consumer Staples
    5%
  • Telecommunications
    4%
  • Basic Materials
    4%
  • Energy
    4%
  • Real Estate
    3%
  • Utilities
    3%

The portfolio is diversified across various sectors, with the largest allocations in Technology and Financial Services, each around 12%. Other significant sectors include Industrials, Healthcare, and Consumer Cyclicals. Diversifying across sectors helps mitigate sector-specific risks and provides exposure to different areas of the economy. It's essential to maintain this sector balance to avoid overexposure to any single sector, which could lead to increased risk.

Regions Info

  • North America
    41%
  • Europe Developed
    11%
  • Asia Emerging
    6%
  • Japan
    4%
  • Asia Developed
    4%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio has a strong focus on North America (41%), with additional exposure to Europe, Asia, and other regions. This geographic diversification reduces the risk associated with economic downturns in any single region. However, it also means the portfolio is subject to global market fluctuations. Maintaining a diverse geographic allocation helps capture growth opportunities worldwide while mitigating regional risks.

Dividends Info

  • iShares Core U.S. Aggregate Bond ETF 3.40%
  • Vanguard Total International Bond Index Fund ETF Shares 4.70%
  • iShares J.P. Morgan USD Emerging Markets Bond ETF 4.80%
  • iShares Core S&P Total U.S. Stock Market ETF 1.30%
  • iShares National Muni Bond ETF 2.80%
  • SPDR® Portfolio S&P 500 ETF 1.30%
  • SPDR® Portfolio S&P 500 Value ETF 1.90%
  • iShares 0-5 Year TIPS Bond ETF 3.10%
  • SPDR® Nuveen Bloomberg Municipal Bond ETF 2.80%
  • Vanguard Small-Cap Value Index Fund ETF Shares 2.10%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 3.40%
  • Vanguard Mid-Cap Value Index Fund ETF Shares 2.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.40%
  • Vanguard Value Index Fund ETF Shares 2.40%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 3.20%
  • Vanguard Emerging Markets Government Bond Index Fund ETF Shares 5.70%
  • Weighted yield (per year) 2.79%

The portfolio's dividend yield is not explicitly provided, but several positions likely contribute to a steady income stream. Dividend-paying ETFs can provide regular income, which is beneficial for investors seeking cash flow. Understanding the dividend yield helps in assessing the income-generating potential of the portfolio. Including dividend-paying assets can enhance total returns and provide a buffer during market downturns.

Ongoing product costs Info

  • iShares Core U.S. Aggregate Bond ETF 0.03%
  • Vanguard Total International Bond Index Fund ETF Shares 0.07%
  • iShares J.P. Morgan USD Emerging Markets Bond ETF 0.39%
  • iShares Core S&P Total U.S. Stock Market ETF 0.03%
  • iShares National Muni Bond ETF 0.05%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • SPDR® Portfolio S&P 500 Value ETF 0.04%
  • iShares 0-5 Year TIPS Bond ETF 0.03%
  • SPDR® Nuveen Bloomberg Municipal Bond ETF 0.23%
  • Vanguard Small-Cap Value Index Fund ETF Shares 0.07%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard Mid-Cap Value Index Fund ETF Shares 0.07%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Value Index Fund ETF Shares 0.04%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Vanguard Emerging Markets Government Bond Index Fund ETF Shares 0.20%
  • Weighted costs total (per year) 0.07%

The portfolio's total expense ratio (TER) is 0.07%, indicating low costs. Low costs are crucial for maximizing net returns, as high fees can erode investment gains over time. The inclusion of low-cost ETFs from providers like Vanguard and iShares is a positive aspect of this portfolio. Keeping investment costs low is a fundamental principle of smart investing, ensuring more of the returns remain in the investor's pocket.

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