A globally diversified portfolio with a strong emphasis on international equities and low costs

Report created on Jul 29, 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 two main ETFs, with a significant tilt towards international stocks (70%) and a substantial allocation to U.S. equities (30%). This composition showcases a strategic preference for global diversification, aiming to capitalize on growth opportunities worldwide while mitigating risks through exposure to the more stable U.S. market. The blend of these ETFs provides a broad spectrum of sector and geographic exposure, aligning with the principles of diversification to enhance risk-adjusted returns.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 9.68% and a maximum drawdown of -34.49%, the portfolio demonstrates resilience and the potential for robust growth over time. The days contributing to 90% of returns highlight the impact of significant market movements on portfolio performance. Comparing these figures to benchmarks can help evaluate the portfolio's relative risk and return profile, suggesting that it has navigated market volatility effectively while delivering competitive returns.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of potential future outcomes, project an average annualized return of 11.47% for this portfolio. With 977 out of 1,000 simulations yielding positive returns, the forward-looking analysis underscores the portfolio's capacity to generate growth. However, it's essential to remember that these projections are hypothetical and subject to the limitations of past data, which may not accurately predict future market conditions.

Asset classes Info

  • Stocks
    98%
  • Cash
    2%

The portfolio's allocation is predominantly in stocks (98%), with a minimal cash reserve (2%). This asset class distribution underscores a growth-oriented strategy, leveraging the potential higher returns of equities. While the stock focus aligns with the portfolio's balanced risk profile, maintaining a small cash position allows for flexibility and the ability to capitalize on investment opportunities as they arise.

Sectors Info

  • Financials
    20%
  • Technology
    18%
  • Industrials
    14%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Basic Materials
    5%
  • Energy
    4%
  • Real Estate
    3%
  • Utilities
    3%

Sector allocations are well-diversified across financial services, technology, industrials, and consumer cyclicals, among others. This sectoral spread helps mitigate industry-specific risks and capitalizes on growth across different economic cycles. The significant weight in technology and financial services indicates a tilt towards sectors that can offer high growth potential but may also introduce higher volatility.

Regions Info

  • North America
    36%
  • Europe Developed
    27%
  • Asia Emerging
    11%
  • Japan
    11%
  • Asia Developed
    7%
  • Australasia
    3%
  • Africa/Middle East
    2%
  • Latin America
    1%
  • Europe Emerging
    1%

The geographic distribution is broad, with notable allocations to North America, Europe (developed), Asia (emerging and developed), and smaller exposures to Australasia, Africa/Middle East, and Latin America. This global exposure is strategic for capturing growth in various economies, though it introduces currency and geopolitical risks that should be monitored.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    31%
  • Mid-cap
    17%
  • Small-cap
    4%
  • Micro-cap
    1%

The market capitalization breakdown shows a preference for mega and big cap stocks, constituting 74% of the portfolio. This emphasis suggests a focus on stability and lower volatility associated with large, established companies. However, the presence of medium, small, and micro-caps, although smaller, adds potential for higher growth and diversification benefits.

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.

The current asset allocation appears near the Efficient Frontier, suggesting it is well-optimized for the best possible risk-return ratio given its existing assets. While this is an encouraging sign, continuous monitoring and adjustments are necessary to maintain this efficiency, especially as market dynamics and investor goals evolve.

Dividends Info

  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 2.32%

The dividend yields from the ETFs contribute to the portfolio's total income, with a combined yield of 2.32%. This income stream, while not the primary focus, adds to the total return and provides a cushion during market downturns. For investors prioritizing income, assessing the growth potential of dividends alongside capital appreciation is vital.

Ongoing product costs Info

  • 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 exceptionally low costs, supporting better net returns over the long term. Cost efficiency is crucial in maximizing investment growth, especially in a low-yield environment, making this portfolio's cost structure a significant advantage.

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