Balanced portfolio with a focus on diversified global stocks and low costs

Report created on Sep 16, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is primarily composed of three ETFs, with a 40% allocation each to Vanguard's Total Stock Market and Total International Stock Index Funds, and a 20% allocation to the SPDR Portfolio S&P 500 ETF. This structure indicates a balanced approach to investing, aiming to capture the performance of the U.S. and international stock markets. The emphasis on ETFs suggests a preference for passive investment strategies, which typically offer broad market exposure at relatively low costs.

Growth Info

With a historical Compound Annual Growth Rate (CAGR) of 12.87% and a maximum drawdown of -34.25%, the portfolio has demonstrated resilience and growth over time. The days contributing to 90% of returns highlight the impact of significant market movements on performance. Comparing these figures with benchmarks would further contextualize the portfolio's performance, indicating how it fares against similar investment strategies.

Projection Info

Monte Carlo simulations project a wide range of potential outcomes for this portfolio, with a median increase of 439.6% suggesting strong growth potential. However, it's important to note that such simulations are based on historical data and assumptions that may not fully account for future market conditions. The high number of simulations with positive returns underscores the portfolio's robustness but should be viewed with cautious optimism.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation shows a heavy emphasis on stocks (99%), with a minimal cash holding (1%). This allocation is indicative of a growth-oriented strategy, relying on stock market investments for returns. While this can offer higher growth potential, it also comes with increased volatility and risk, especially in market downturns.

Sectors Info

  • Technology
    25%
  • Financials
    18%
  • Industrials
    12%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    4%
  • Utilities
    3%
  • Real Estate
    3%

Sectoral allocation within the portfolio is well-diversified, covering technology, financial services, industrials, consumer cyclicals, and healthcare as the top sectors. This diversification helps mitigate sector-specific risks and capitalizes on growth across different areas of the economy. However, the significant weight in technology suggests a higher sensitivity to market shifts in this sector.

Regions Info

  • North America
    63%
  • Europe Developed
    16%
  • Asia Emerging
    6%
  • Japan
    6%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America (63%), with significant exposures to developed Europe (16%) and emerging and developed Asia. This distribution provides a good balance between the stability of developed markets and the growth potential of emerging economies. However, the relatively low exposure to emerging markets and regions like Latin America and Africa/Middle East may limit diversification benefits.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    31%
  • Mid-cap
    18%
  • Small-cap
    4%
  • Micro-cap
    1%

The focus on mega (44%) and big (31%) cap stocks indicates a preference for established, large companies likely to offer stability and consistent returns. Medium, small, and micro caps represent smaller portions of the portfolio, suggesting a cautious approach to risk. Expanding into smaller cap stocks could offer higher growth potential but would also increase volatility.

Redundant positions Info

  • SPDR® Portfolio S&P 500 ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation between the SPDR Portfolio S&P 500 ETF and the Vanguard Total Stock Market Index Fund ETF Shares suggests redundancy, as both track large segments of the U.S. stock market. This overlap does not contribute significantly to diversification and could be an area for optimization by reallocating funds to reduce similar exposures.

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.

Optimizing this portfolio involves addressing the high correlation between certain assets, which currently limits diversification benefits. By reallocating funds from overlapping investments to underrepresented sectors, regions, or asset classes, the portfolio could achieve a more efficient risk-return profile, potentially enhancing its performance on the Efficient Frontier.

Dividends Info

  • SPDR® Portfolio S&P 500 ETF 1.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.74%

The portfolio's dividend yield stands at 1.74%, with the highest yield from the Vanguard Total International Stock Index Fund ETF Shares. While dividends contribute to total returns, the focus here seems to be more on capital appreciation. Investors seeking income might consider adjusting allocations to increase the overall yield.

Ongoing product costs Info

  • SPDR® Portfolio S&P 500 ETF 0.02%
  • 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 an overall expense ratio of 0.04%, the portfolio benefits from low costs, which can significantly enhance long-term returns. Keeping costs low is a fundamental principle of successful investing, as higher fees can erode profits over time. This portfolio's cost efficiency is a strong point, supporting better net returns.

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