A comprehensive analysis of a cautious investor's portfolio with a focus on balanced growth

Report created on Jul 20, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The Vanguard Wellington Fund Investor Shares, comprising your entire portfolio, offers a balanced mix of 65% stocks and 34% bonds, with a minimal cash position. This allocation reflects a conservative approach to investing, aiming for steady growth with moderated risk. The fund's diversification across several sectors, primarily technology, financial services, and consumer cyclical, coupled with a strong bond component, positions it well for investors seeking a mix of income and capital appreciation. However, the portfolio's heavy concentration in a single fund, even one as diversified as the Wellington Fund, introduces specific fund-related risks alongside its benefits.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 9.28%, with a maximum drawdown of -25.33%. This performance is indicative of a well-managed balance between growth and risk, suitable for cautious investors. The days contributing most significantly to returns underscore the importance of staying invested over the long term, despite market volatility. Comparing these figures to a relevant benchmark would provide further context, but the data suggests a strong historical performance.

Projection Info

Monte Carlo simulations, projecting 1,000 different market scenarios, show a wide range of outcomes with a median increase of 253.1%. This method, while based on historical data, helps illustrate potential future volatility and return scenarios. It's important to remember, however, that these projections cannot guarantee future performance. The high percentage of simulations with positive returns reinforces the fund's potential for steady growth.

Asset classes Info

  • Stocks
    65%
  • Bonds
    34%
  • Cash
    1%

The allocation to stocks, bonds, and a nominal cash position is well-aligned with the fund's cautious profile. Stocks provide growth potential, bonds offer stability and income, and the minimal cash holdings ensure liquidity. This asset class distribution supports a balanced approach, though investors might consider if a slight adjustment could better serve their specific risk tolerance and investment horizon.

Sectors Info

  • Technology
    29%
  • Financials
    15%
  • Consumer Discretionary
    12%
  • Health Care
    11%
  • Telecommunications
    9%
  • Industrials
    6%
  • Consumer Staples
    5%
  • Energy
    5%
  • Utilities
    3%
  • Real Estate
    2%
  • Basic Materials
    1%

The sectoral allocation demonstrates a significant tilt towards technology, financial services, and consumer cyclical sectors, reflecting a growth-oriented strategy within the fund's cautious framework. While this sectoral focus has likely contributed to the fund's historical performance, investors should be mindful of sector-specific risks and consider whether this concentration aligns with their investment objectives.

Regions Info

  • North America
    94%
  • Europe Developed
    6%

With 94% of assets in North America and 6% in developed Europe, the fund's geographic exposure is heavily skewed towards the US market. This concentration enhances exposure to the stability and growth potential of developed markets but limits diversification benefits from emerging markets or other developed regions. Investors might evaluate the potential advantages of broader global exposure.

Market capitalization Info

  • Mega-cap
    30%
  • Large-cap
    29%
  • Mid-cap
    6%

The fund's market capitalization breakdown, with a focus on mega and big-cap stocks, aligns with its cautious investment stance, favoring established companies with a track record of stability and growth. However, the limited exposure to mid-cap stocks suggests an area for potential diversification, as these companies can offer higher growth opportunities with manageable risk.

Dividends Info

  • VANGUARD WELLINGTON FUND INVESTOR SHARES 9.60%
  • Weighted yield (per year) 9.60%

The fund's dividend yield of 9.60% is notably high, contributing significantly to total returns, especially for income-focused investors. This yield, derived from both the stock and bond components, underscores the fund's dual focus on income generation and capital growth. Investors should consider the sustainability of this yield in their long-term planning.

Ongoing product costs Info

  • VANGUARD WELLINGTON FUND INVESTOR SHARES 0.25%
  • Weighted costs total (per year) 0.25%

With a Total Expense Ratio (TER) of 0.25%, the fund operates efficiently, minimizing costs for investors. This low cost structure is commendable, as it allows a larger portion of investment returns to accrue to the investor, supporting better long-term performance.

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