Balanced portfolio with a strong foundation in global stocks and bonds

Report created on Jul 22, 2025

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 structured with a heavy emphasis on equities, comprising 86% of the allocation, split between U.S. and international stocks. The remaining 14% is allocated to bonds and real estate, providing a cushion against market volatility. This composition aligns with a balanced risk profile, aiming to capture growth through equities while mitigating risks with bonds and REITs. The heavy weighting in the Vanguard Total Stock Market Index Fund suggests a broad exposure to the U.S. market, which is complemented by international exposure and real estate diversification.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 11.08%, with a maximum drawdown of -31.72%. This performance indicates a strong recovery capability from market downturns, largely attributed to its diversified equity holdings. The days contributing to 90% of returns highlight the impact of significant market movements on portfolio performance. Comparing this to benchmark indices would provide further insight into its relative performance, especially during volatile periods.

Projection Info

Using Monte Carlo simulations, which project future outcomes based on historical data, the portfolio shows a wide range of potential future performances. While past performance is not indicative of future results, the simulations suggest a majority of scenarios result in positive returns, with a median projected increase of 157.2%. This indicates a robustness in the portfolio's structure, capable of generating growth over time, though investors should remain aware of the inherent uncertainties in such projections.

Asset classes Info

  • Stocks
    86%
  • Bonds
    13%
  • Cash
    1%

The allocation across asset classes with 86% in stocks and 13% in bonds offers a balanced approach to growth and income. This mix supports a strategy aimed at long-term wealth accumulation with a moderate risk profile. The inclusion of a small percentage in real estate through REITs adds an additional layer of diversification, potentially enhancing returns and reducing overall portfolio volatility.

Sectors Info

  • Technology
    22%
  • Financials
    13%
  • Consumer Discretionary
    9%
  • Industrials
    9%
  • Health Care
    8%
  • Telecommunications
    7%
  • Real Estate
    6%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%

The sectoral allocation shows a significant tilt towards technology, financial services, and consumer cyclicals, reflecting a growth-oriented strategy. However, this concentration also exposes the portfolio to sector-specific risks, such as regulatory changes or economic downturns affecting these industries disproportionately. Balancing this with more defensive sectors like healthcare and consumer defensive could provide additional stability.

Regions Info

  • North America
    70%
  • No data
    13%
  • Europe Developed
    7%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographic exposure is heavily skewed towards North America, with a 70% allocation, potentially limiting global diversification benefits. While the portfolio includes international equities, increasing allocations to developed Europe, Asia, and emerging markets could enhance exposure to global growth opportunities and reduce the impact of regional economic cycles.

Market capitalization Info

  • Mega-cap
    35%
  • Large-cap
    26%
  • Mid-cap
    18%
  • Small-cap
    5%
  • Micro-cap
    2%

The market capitalization breakdown shows a balanced approach, with a focus on mega and big-cap companies, which typically offer stability and steady growth. However, the relatively smaller allocation to small and micro-cap stocks suggests an opportunity to enhance potential returns by increasing exposure to these higher-growth, albeit riskier, segments.

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 appears well-positioned for a balanced risk-return profile. However, there's always room for optimization, especially by tweaking the asset allocation or diversifying further within asset classes and geographies. Such adjustments could potentially edge the portfolio closer to the optimal risk-return balance, enhancing its efficiency in achieving the investor's financial goals.

Dividends Info

  • Vanguard Total Bond Market Index Fund Admiral Shares 3.50%
  • VANGUARD REIT INDEX FUND ADMIRAL SHARES 2.90%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 2.10%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.90%
  • Weighted yield (per year) 1.55%

The portfolio's dividend yield contributes to its total return, providing a steady income stream. While the overall yield is modest, it complements the growth strategy by reinvesting dividends, potentially enhancing compounding effects. The bond and REIT components notably contribute to this yield, underscoring their role in providing income alongside capital appreciation.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund Admiral Shares 0.04%
  • VANGUARD REIT INDEX FUND ADMIRAL SHARES 0.13%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 0.09%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.04%
  • Weighted costs total (per year) 0.05%

With an overall Total Expense Ratio (TER) of 0.05%, the portfolio is cost-efficient, which is crucial for enhancing long-term returns. Lower costs mean more of the portfolio's gross return is retained by the investor, a significant advantage in building wealth over time. This efficiency is a strong aspect of the portfolio's construction, aligning with best practices in investment management.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey