Balanced target date focused portfolio with strong global diversification and low fees for long term growth
Report created on Apr 10, 2026Risk profile
4/7
Diversification profile
4/5
Positions
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SS STATE STREET TARGET RETIREMENT 2040 FUND CLASS K
SSCQX - US85749R7272 80.00% -
VO Vanguard S&P 500 ETF
VOO - US9229083632 10.00% -
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 7.00% -
SG iShares Trust
SGOV - US46436E7186 3.00%
The portfolio is dominated by a single target-date fund at 80%, with the rest in three broad, low-cost equity ETFs. That big core fund likely mixes stocks and bonds and gradually gets more conservative as 2040 approaches. This kind of “one main engine plus a few satellites” setup is simple and easy to maintain. It keeps most of the heavy lifting inside a professionally managed fund while still adding extra broad equity exposure. For someone who wants growth without having to constantly tinker, this structure is sensible. The main thing to watch over time is whether the extra ETFs still match your preferred risk level as the target-date fund glides toward lower risk.
Growth
From mid‑2020 to early 2026, $1,000 grew to about $2,145, a compound annual growth rate (CAGR) of 13.94%. CAGR is like your average speed on a long road trip, smoothing out bumps along the way. The portfolio lagged the US market by about 2.55% per year and the global market by 0.79% per year, but still delivered strong absolute returns. Maximum drawdown, the worst peak‑to‑trough slide, was about ‑24.6%, in line with the US market. That shows you’re getting a solid return profile with drawdowns similar to broad equities. It’s a reminder that meaningful growth usually comes with stomach‑churning periods that need patience to ride out.
Projection
The Monte Carlo simulation looks at thousands of possible futures based on past behavior and volatility, not a single forecast. It shakes the historical data and runs 1,000 alternate “what if” paths over 15 years. The median outcome grows $1,000 to about $2,656, with most simulations landing between roughly $1,916 and $3,645. There’s about a 77% chance of ending with more than you started. That’s encouraging, but not a promise. Simulations assume the future rhymes with the past, which isn’t guaranteed. The takeaway is that a growth‑tilted, diversified mix has historically rewarded patience over 10–20 year horizons, while still leaving a wide range of possible results.
Asset classes
- Stocks 78%
- Bonds 22%
Roughly 78% of the portfolio is in stocks and 22% in bonds, which lines up nicely with a “balanced but growth‑oriented” profile. Stocks are the main driver of long‑term returns but can swing hard; bonds tend to be steadier and help cushion big drops. This mix is consistent with someone who can handle volatility but doesn’t want to be 100% in equities. It’s also a solid match with your risk classification as a balanced investor. Over long periods, this blend has historically offered a good compromise between growth and comfort. If your time horizon shortens or risk tolerance changes, adjusting the stock/bond split is one of the simplest levers.
Sectors
- Technology 25%
- Financials 16%
- Industrials 12%
- Health Care 9%
- Telecommunications 8%
- Consumer Discretionary 8%
- Consumer Staples 5%
- Basic Materials 4%
- Energy 4%
- Utilities 2%
- Real Estate 2%
- Consumer Discretionary 2%
This breakdown covers the equity portion of your portfolio only.
Sector exposure is nicely spread: technology leads at 25%, followed by financials, industrials, health care, telecom, and consumer sectors, with smaller slices in materials, energy, utilities, and real estate. That’s broadly in line with global equity benchmarks and suggests you’re not overly reliant on any one part of the economy. A tech tilt can boost long‑term growth, but it also means sensitivity to interest rates and innovation cycles. Having meaningful weights in more defensive areas like health care, staples, and utilities helps smooth the ride when growth sectors wobble. Overall, this sector mix is well‑balanced and aligns closely with global standards.
Regions
- North America 62%
- Europe Developed 14%
- Japan 6%
- Asia Developed 5%
- Asia Emerging 5%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
This breakdown covers the equity portion of your portfolio only.
Geographically, about 62% is in North America, with the rest spread across developed Europe, Japan, other developed Asia, emerging Asia, and smaller slices in Australasia, Latin America, and Africa/Middle East. That’s similar to global market weights, where US and Canadian markets naturally dominate. This allocation is well‑balanced and aligns closely with global standards, meaning you’re not taking big bets on or against any one region. The benefit is that your returns are tied to the global economy rather than a single country. The trade‑off: when global markets move together in big crises, even a globally diversified portfolio can still experience significant drawdowns.
Market capitalization
- Mega-cap 33%
- Large-cap 24%
- Mid-cap 14%
- Small-cap 4%
- Micro-cap 1%
This breakdown covers the equity portion of your portfolio only.
Your market‑cap mix leans heavily toward mega‑ and large‑cap companies, with smaller portions in mid, small, and micro‑caps. That’s very similar to how the global equity market itself is structured. Bigger companies tend to be more stable, widely researched, and liquid, which can reduce extreme volatility. Smaller companies can offer higher growth potential but also more risk and bumpier rides. By mostly mirroring market weights, you’re not making an explicit bet on tiny companies or speculative names. Instead, you’re capturing the broad corporate universe with a natural tilt to the world’s largest, most established businesses.
True holdings
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NV NVIDIA Corporation 0.99%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
AA Apple Inc 0.91%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
MS Microsoft Corporation 0.68%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
AM Amazon.com Inc 0.47%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class A 0.42%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
AV Broadcom Inc 0.35%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
GO Alphabet Inc Class C 0.34%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
ME Meta Platforms Inc. 0.33%
Part of fund(s):- Vanguard S&P 500 ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
TS Tesla Inc 0.26%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
- Vanguard Total World Stock Index Fund ETF Shares
-
XT BlackRock Cash Funds Treasury SL Agency 0.22%
Part of fund(s):- iShares Trust
- Top 10 total 4.98%
This breakdown covers the equity portion of your portfolio only.
The visible top holdings across your ETFs are the big global names: NVIDIA, Apple, Microsoft, Amazon, Alphabet, Meta, Tesla, and Broadcom. These show up in several funds, so even if each ETF looks diversified, there’s hidden overlap in the same mega‑cap growth leaders. Overlap isn’t bad by itself; these companies have driven a lot of market returns recently. But it does mean your results are partly tied to how a relatively small group of giants performs. Because we only see ETF top‑10 lists, this concentration is probably understated. When these names are strong, the portfolio benefits; if they stumble, the impact can feel bigger than expected.
Factors
Factor exposures are estimated using statistical models based on historical data and measure systematic (market-relative) tilts, not absolute portfolio characteristics. Results may vary depending on the analysis period, data availability, and currency of the underlying assets.
Factor exposure is mostly neutral across value, size, momentum, and quality, meaning the portfolio behaves a lot like the broad market on those dimensions. Factor exposure is like checking which “traits” your holdings share, such as cheapness (value) or recent winners (momentum). The standout tilt is toward low volatility at 78%, which means the holdings tend to be somewhat steadier than the market overall. Yield exposure is relatively low, so the portfolio is more focused on total return than on high income. This mild low‑volatility tilt fits well with a balanced risk profile, helping smooth returns without straying far from broad market behavior.
Risk contribution
-
STATE STREET TARGET RETIREMENT 2040 FUND CLASS K
Weight: 80.00% 79.4% -
Vanguard S&P 500 ETF
Weight: 10.00% 12.2% -
Vanguard Total World Stock Index Fund ETF Shares
Weight: 7.00% 8.4% -
iShares Trust
Weight: 3.00% 0.0%
Risk contribution shows how much each holding actually drives the portfolio’s ups and downs, which can differ from its weight. Here, the 80% target‑date fund contributes about 79% of risk, almost exactly in line with its size. The S&P 500 ETF and the total world ETF punch slightly above their weight in risk terms, contributing 12% and 8% of total risk from just 10% and 7% allocations. The small bond‑like iShares position adds virtually no risk. Overall, your risk is not secretly concentrated in a single high‑volatility outlier. If you ever wanted to dial risk up or down, changing the stock/bond mix in the core fund would be the most impactful lever.
Redundant positions
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High correlationVanguard S&P 500 ETFSTATE STREET TARGET RETIREMENT 2040 FUND CLASS KVanguard Total World Stock Index Fund ETF Shares
Several holdings are highly correlated, meaning they tend to move in the same direction at the same time. For example, the target‑date fund and the total world ETF move almost identically, and the S&P 500 and total world ETF are also tightly linked. Correlation is important because if assets move together, they don’t reduce overall risk much during a downturn. In your case, the equity pieces behave similarly, which is expected since they all track broad markets. The diversification benefit mainly comes from the bond exposure inside the target‑date fund and the small cash‑like holding, not from big differences between the stock funds themselves.
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 efficient frontier analysis shows your current mix is on or very near the frontier, with a Sharpe ratio of 0.75. The Sharpe ratio measures return per unit of risk, like miles per gallon for your portfolio. There is a theoretical “optimal” mix of these same holdings with a higher Sharpe of 0.98, but that comes with slightly higher risk and return. The minimum‑variance portfolio has almost no risk and very low return, which isn’t practical for growth. Since you’re already near the efficient frontier, the current allocation is efficient for its risk level. Any tweaks from here are more about personal comfort and goals than fixing a structural problem.
Dividends
- iShares Trust 3.90%
- STATE STREET TARGET RETIREMENT 2040 FUND CLASS K 7.00%
- Vanguard S&P 500 ETF 1.10%
- Vanguard Total World Stock Index Fund ETF Shares 1.70%
- Weighted yield (per year) 5.95%
The combined dividend yield of about 5.95% looks high, mostly driven by the 2040 target‑date fund’s reported yield. Dividends are the cash payments companies or funds distribute, and they can be an important part of total return, especially over long periods as they’re reinvested. However, yield figures can be skewed by one‑off payouts or bond interest, so it’s worth treating them as rough rather than guaranteed. The S&P 500 and total world ETFs have modest yields around 1–2%, which is typical for broad equity markets. This setup leans more toward growth with a solid income component, rather than pure high‑yield income investing.
Ongoing product costs
- iShares Trust 0.07%
- STATE STREET TARGET RETIREMENT 2040 FUND CLASS K 0.09%
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.08%
Your total expense ratio (TER) is around 0.08%, which is impressively low. TER is the annual fee charged by funds, like a small slice taken each year to cover management and administration. Lower fees mean more of the portfolio’s returns stay in your pocket, and over decades that difference compounds into real money. All four holdings sit in the ultra‑low‑cost range for their types. From a cost perspective, you’re very well positioned; there’s no obvious drag here. That’s a strong foundation because even if markets are unpredictable, keeping fees low is one of the few levers investors can reliably control.
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