Balanced and globally diversified portfolio with a strong foundation in major markets

Report created on Jul 13, 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 evenly split between the Vanguard S&P 500 ETF and the Vanguard Total International Stock Index Fund ETF Shares, indicating a strategic balance between U.S. and international equities. Such a composition suggests a deliberate approach to capturing growth across diverse economies while mitigating risks through broad geographic exposure. The equal weighting simplifies rebalancing and reflects a commitment to a long-term, globally diversified investment strategy.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 10.92% and a maximum drawdown of -33.85%, the portfolio has demonstrated resilience and a strong growth trajectory over time. The days contributing most significantly to returns highlight the impact of market timing and the importance of staying invested through market cycles. Compared to benchmarks, this performance underscores the benefits of a diversified approach to equity investment.

Projection Info

Monte Carlo simulations, with 1,000 iterations, forecast a wide range of potential outcomes, emphasizing the uncertainty inherent in investing. The median projection of a 280.9% return, alongside a high percentage of simulations predicting positive returns, suggests a favorable outlook. However, the variability in outcomes highlights the importance of risk management and maintaining a long-term perspective.

Asset classes Info

  • Stocks
    98%
  • Cash
    1%

The portfolio's allocation to stocks (98%) showcases a strong orientation towards equity as the primary growth driver, complemented by a minimal cash holding (1%). This asset class distribution aligns with the portfolio's balanced risk profile, aiming for growth while accepting moderate levels of volatility. The absence of fixed income or alternative investments may limit diversification benefits, suggesting room for optimization.

Sectors Info

  • Technology
    23%
  • Financials
    18%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    4%
  • Utilities
    3%
  • Real Estate
    3%

The sectoral allocation emphasizes technology, financial services, and industrials, reflecting a tilt towards sectors with high growth potential. However, this concentration also introduces sector-specific risks, particularly in volatile market conditions. A more balanced sectoral spread could mitigate these risks, enhancing the portfolio's resilience to sector-specific downturns.

Regions Info

  • North America
    54%
  • Europe Developed
    20%
  • Asia Emerging
    8%
  • Japan
    8%
  • Asia Developed
    5%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

The geographic distribution, with a majority in North America and significant allocations to Europe and Asia, underscores a well-considered approach to international diversification. This global footprint harnesses growth opportunities across developed and emerging markets, though the modest exposure to Latin America and Africa/Middle East suggests potential areas for further diversification.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    33%
  • Mid-cap
    17%
  • Small-cap
    2%

The portfolio's focus on mega and big cap stocks (79% combined) aligns with its balanced risk profile, leveraging the stability and lower volatility of large, established companies. However, the limited exposure to small and micro caps may restrict opportunities for outsized growth from smaller, more dynamic firms.

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 portfolio's alignment with the Efficient Frontier could be evaluated further to ensure it is positioned for the optimal risk-return trade-off. While its current allocation between U.S. and international equities is commendable, exploring diversification into other asset classes or adjusting the sectoral and market cap distribution could potentially enhance its efficiency.

Dividends Info

  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 2.00%

The dividend yields from both ETFs, averaging at 2.00%, contribute to the portfolio's total return, providing a steady income stream alongside capital appreciation. This yield is particularly relevant for investors seeking a balance between growth and income, reinforcing the portfolio's suitability for a long-term, balanced investment strategy.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

With an overall Total Expense Ratio (TER) of 0.04%, the portfolio benefits from exceptionally low costs, enhancing net returns over time. This cost efficiency is a significant advantage, allowing investors to retain a greater share of their investment returns, which is crucial for long-term wealth accumulation.

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