Balanced and highly diversified portfolio with a strong foundation in global equities and real estate

Report created on Aug 3, 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 structured around three Vanguard ETFs, focusing on total stock markets, international stocks, and real estate, making up 60%, 30%, and 10% of the portfolio, respectively. This composition underlines a strategic emphasis on broad market exposure, with a significant tilt towards equities for growth, complemented by real estate for income and diversification. The blend of domestic and international equities ensures global diversification, which is crucial for spreading risk and capturing growth across different economies.

Growth Info

Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 11.40%, with a maximum drawdown of -35.23%. These figures suggest a resilient performance across market cycles, with the drawdown indicating the potential risk during turbulent periods. The days contributing most to returns highlight the impact of significant market movements on portfolio growth. Comparing this performance to relevant benchmarks could provide further insight into its relative strength.

Projection Info

Utilizing Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. While past performance is not indicative of future results, these simulations suggest a predominantly positive outlook, with a median increase of 218.4%. However, the presence of simulations with negative returns underscores the inherent uncertainties in investing.

Asset classes Info

  • Stocks
    89%
  • Real Estate
    10%
  • Cash
    1%

The portfolio's asset allocation leans heavily towards stocks (89%) with a smaller allocation to real estate (10%) and a minimal cash position (1%). This distribution aligns with the portfolio's growth-oriented strategy but carries higher volatility due to the significant stock exposure. Diversifying across asset classes can help manage risk, and the current allocation should be reviewed in light of the investor's risk tolerance and investment horizon.

Sectors Info

  • Technology
    23%
  • Financials
    15%
  • Real Estate
    12%
  • Industrials
    10%
  • Consumer Discretionary
    10%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%

Sector allocation is diversified across technology, financial services, real estate, industrials, and consumer cyclicals, among others. This broad sector exposure mitigates risks associated with overconcentration in any single sector. However, the heavy weighting towards technology and financial services sectors could influence the portfolio's volatility, given these sectors' sensitivity to economic cycles.

Regions Info

  • North America
    72%
  • Europe Developed
    12%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation shows a strong preference for North American equities (72%), with meaningful exposures to developed Europe and emerging Asia. This global diversification helps in spreading risk and capturing growth in different markets. However, the relatively lower exposure to emerging markets may limit potential high-growth opportunities, which could be considered depending on the investor's risk appetite.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    30%
  • Mid-cap
    22%
  • Small-cap
    6%
  • Micro-cap
    2%

Exposure across market capitalizations is balanced, with a tilt towards mega and big cap stocks, which tend to be less volatile than their smaller counterparts. This balance supports stability in the portfolio's value, although incorporating more small and micro-cap stocks could offer higher growth potential, albeit with increased risk.

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.

Considering the Efficient Frontier, the portfolio's current allocation suggests a thoughtful balance between risk and return. However, ongoing assessment and potential rebalancing could further optimize its position on the Efficient Frontier, ensuring the best possible risk-return ratio within the constraints of the chosen assets and allocation.

Dividends Info

  • Vanguard Real Estate Index Fund ETF Shares 3.90%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.98%

The dividend yields from the real estate ETF (3.90%) and the international stock ETF (2.90%) contribute significantly to the portfolio's income, complementing the growth from the total stock market ETF (1.20%). This balanced approach supports both income generation and capital appreciation, aligning with a strategy that values steady returns alongside growth.

Ongoing product costs Info

  • Vanguard Real Estate Index Fund ETF Shares 0.12%
  • 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 0.04%, the portfolio benefits from low costs, which can significantly enhance long-term returns. Vanguard's reputation for low-cost, high-quality funds is evident here, ensuring that investment costs do not unduly erode portfolio growth.

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