Balanced and broadly diversified portfolio with a strong focus on stocks and global exposure

Report created on Jul 22, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio predominantly comprises three Vanguard ETFs, focusing on the S&P 500, international stocks, and small-cap value stocks, with allocations of 50%, 30%, and 20%, respectively. This structure demonstrates a balanced approach, leveraging the growth potential of large-cap and international equities while incorporating the value play of small-cap stocks. The diversification is broad, covering multiple sectors and geographic regions, aligning with a balanced risk profile. This composition suggests a strategy aiming for growth with a moderated risk level, suitable for investors seeking a blend of stability and potential returns.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 11.86%, with a maximum drawdown of -35.89%. The performance metrics indicate a strong growth trajectory over time, albeit with significant volatility, as evidenced by the drawdown. The days contributing most to returns are relatively few, highlighting the impact of short-term gains. This performance profile suggests the portfolio can offer substantial growth opportunities but requires an investor to tolerate periods of high volatility.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median scenario suggesting a 289.2% return. This forward-looking analysis, while based on historical data, underscores the potential for significant growth but also emphasizes the uncertainty inherent in investing. Investors should understand that such projections are speculative and depend on many variables that can change over time.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely invested in stocks (99%), with a minor cash holding (1%). This asset class distribution underscores a growth-oriented strategy but comes with higher volatility compared to portfolios with significant allocations to bonds or other fixed-income securities. Investors should be aware of the risks associated with a stock-heavy portfolio, including market fluctuations and economic downturns.

Sectors Info

  • Technology
    22%
  • Financials
    18%
  • Industrials
    13%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Real Estate
    4%
  • Energy
    4%
  • Utilities
    3%

Sector allocation is well-diversified across technology, financial services, industrials, and consumer cyclicals, among others. This sector spread mitigates risks associated with overexposure to any single sector. However, the technology and financial services sectors, making up 40% of the portfolio, could lead to higher volatility during market downturns or sector-specific shocks.

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%

Geographically, the portfolio is heavily weighted towards North America (72%), with significant exposure to developed Europe and emerging Asian markets. This geographic distribution enhances diversification and offers exposure to various economic growth drivers. However, the limited exposure to emerging markets and other regions may mean missed opportunities in high-growth areas.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    27%
  • Mid-cap
    19%
  • Small-cap
    14%
  • Micro-cap
    3%

The market capitalization breakdown shows a balanced approach, with allocations to mega (37%), big (27%), medium (19%), small (14%), and micro (3%) cap stocks. This diversification across market caps can help buffer against volatility in any single market cap category and leverage growth opportunities across the spectrum of company sizes.

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, this portfolio appears well-positioned for optimizing the risk-return ratio based on its current asset allocation. However, continuous review and adjustment are vital to maintaining this optimization, especially as market conditions and investment goals evolve. The Efficient Frontier concept helps in making these adjustments by identifying the most efficient allocation.

Dividends Info

  • Vanguard Small-Cap Value Index Fund ETF Shares 2.10%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.86%

The dividend yield across the ETFs averages 1.86%, contributing to the portfolio's total return. While not the primary focus, these dividends provide a steady income stream, which can be particularly valuable during market downturns or for investors seeking income. Balancing growth and income generation is crucial for long-term investment strategies.

Ongoing product costs Info

  • Vanguard Small-Cap Value Index Fund ETF Shares 0.07%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

The portfolio benefits from low total expense ratios (TERs), averaging 0.04%, which is impressive and supports better long-term performance by minimizing costs. Lower costs are crucial for maximizing returns, especially in a low-yield environment. Investors should always consider the impact of fees on their investment outcomes.

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