A balanced portfolio with a strategic mix of stocks and bonds for moderate risk investors

Report created on Jun 12, 2025

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

Positions

This portfolio is strategically composed of 70% stocks via the Vanguard Total Stock Market Index Fund ETF Shares, 15% bonds through the Vanguard Total Bond Market Index Fund ETF Shares, and an additional 15% in international stocks with the Vanguard Total International Stock Index Fund ETF Shares. This allocation suggests a balanced approach, leaning towards growth with a significant emphasis on the U.S. market while maintaining a moderate level of risk. The broad diversification across asset classes and geographic regions is designed to mitigate volatility and provide a stable growth trajectory.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 10.84%, with a maximum drawdown of -31.06%. This performance indicates a resilient portfolio capable of strong returns, albeit with periods of significant declines. The drawdown figure highlights the portfolio's risk during market downturns, which is an essential consideration for investors. This historical performance, while impressive, should be viewed with the understanding that past results do not guarantee future returns.

Projection Info

Monte Carlo simulations, which ran 1,000 scenarios using historical data, show a wide range of potential outcomes. The median (50th percentile) outcome projects a 167.4% return, suggesting optimistic growth potential. However, the 5th percentile outcome at 4.2% warns of risk under adverse conditions. These projections are valuable for understanding potential volatility and setting realistic expectations but remember, they are based on past data and cannot predict the future accurately.

Asset classes Info

  • Stocks
    84%
  • Bonds
    15%
  • Cash
    1%

The portfolio's asset allocation of 84% in stocks and 15% in bonds, with a minimal cash position, is well-suited for a balanced investment strategy focusing on growth with a cushion against market volatility. This mix supports long-term capital appreciation while using bonds to reduce potential downturns during market corrections. The balance between stocks and bonds is crucial for managing risk and should be periodically reviewed to align with changing market conditions and personal investment goals.

Sectors Info

  • Technology
    22%
  • Financials
    14%
  • Health Care
    9%
  • Consumer Discretionary
    9%
  • Industrials
    8%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation is tilted towards technology, financial services, and healthcare, which are sectors with high growth potential but also increased volatility. The concentration in these sectors aligns with the portfolio's growth orientation but may expose it to sector-specific risks. Diversification across sectors can reduce risk, and the presence in a broad range of sectors is a positive aspect, though the heavy weighting in technology calls for monitoring given its volatility.

Regions Info

  • North America
    71%
  • Europe Developed
    6%
  • Asia Emerging
    3%
  • Japan
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

With 71% of assets allocated to North America and a diversified presence in developed and emerging markets, the portfolio has a strong U.S. bias with international exposure to capture global growth opportunities. This geographic distribution enhances diversification, reducing the impact of regional economic downturns. However, the modest exposure to emerging markets might limit potential high-growth opportunities available in those regions.

Market capitalization Info

  • Mega-cap
    36%
  • Large-cap
    26%
  • Mid-cap
    16%
  • Small-cap
    5%
  • Micro-cap
    2%

The portfolio's emphasis on mega and big-cap stocks (62% combined) suggests a focus on stability and lower volatility associated with larger, well-established companies. Medium, small, and micro caps represent a smaller portion, offering growth potential and diversification benefits but at higher risk. This market cap distribution is appropriate for a balanced strategy aiming for growth with moderate risk.

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, this portfolio appears to be well-positioned for a balanced risk-return profile. However, there's always room for improvement. Regularly reviewing the asset allocation against the Efficient Frontier can help identify opportunities to adjust the mix for potentially better outcomes with the same or lower level of risk. This optimization process is an ongoing task that can help maintain the portfolio's alignment with the investor's goals and risk tolerance.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.92%

The overall portfolio yield of 1.92% combines growth potential with income generation, mainly contributed by the bond allocation with a yield of 3.80%. While the focus is on capital appreciation, dividends offer a stream of income and a cushion during market volatility. The blend of yields reflects a balanced approach, supporting both income and growth objectives.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • 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) 0.03%

With an overall Total Expense Ratio (TER) of 0.03%, the portfolio benefits from low costs, enhancing net returns over time. Low costs are crucial for long-term investment success, as they compound positively by leaving more in the portfolio to grow. This cost efficiency is a significant advantage of the chosen funds, aligning with best practices for maximizing investment returns.

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