Balanced and highly diversified portfolio with a strategic focus on global equities 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

This portfolio is structured with a strong emphasis on equities, accounting for 89% of the allocation, split between U.S. and international markets, including emerging markets. The remaining 11% is divided between bonds and a minimal cash holding. Such a composition suggests a strategic approach to diversification across asset classes and geographies, aiming to balance growth potential with risk mitigation through bonds.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 10.65% and a maximum drawdown of -32.68%, 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 this to benchmarks, it's evident that the portfolio's diversified approach has provided a solid foundation for growth, despite market volatility.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 182.3% suggesting strong potential for future growth. However, the 5th percentile outcome of -13.7% underscores the inherent risks. These projections, while based on historical data, should be viewed as one of many tools in assessing potential future performance, not guarantees.

Asset classes Info

  • Stocks
    89%
  • Bonds
    10%
  • Cash
    1%

The allocation leans heavily towards stocks, with a minor allocation in bonds and an almost negligible cash position. This distribution aligns with a growth-oriented strategy but carries higher volatility. The bond allocation provides a cushion against equity market swings, albeit a small one given the portfolio's overall composition.

Sectors Info

  • Technology
    21%
  • Financials
    16%
  • Industrials
    10%
  • Consumer Discretionary
    10%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Basic Materials
    4%
  • Energy
    3%
  • Real Estate
    3%
  • Utilities
    3%

Sector allocation is well-diversified, with technology and financial services taking the lead. This reflects a modern growth-oriented investment approach but also indicates potential vulnerability to sector-specific downturns. The balanced presence of industrials, consumer cyclicals, and healthcare sectors mitigates this risk to some extent.

Regions Info

  • North America
    61%
  • Asia Emerging
    9%
  • Europe Developed
    8%
  • Asia Developed
    4%
  • Japan
    3%
  • Africa/Middle East
    2%
  • Latin America
    1%
  • Australasia
    1%

Geographic allocation underscores a strong bias towards North America, complemented by significant exposure to emerging and developed markets in Asia and Europe. This global diversification enhances growth potential while spreading geopolitical and currency risk, though the heavy North American emphasis may skew risk exposure towards U.S. market performance.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    24%
  • Mid-cap
    17%
  • Small-cap
    10%
  • Micro-cap
    3%

The market capitalization spread, with a focus on mega and big-cap stocks, suggests a preference for stability and lower volatility associated with larger companies. However, the inclusion of medium, small, and micro caps introduces growth potential, albeit with increased 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.

The current allocation appears well-optimized for a balance between risk and return, as suggested by its Efficient Frontier analysis. This indicates that the portfolio is positioned near the optimal point for maximizing returns for a given level of risk. However, continuous review is essential to maintain this balance as market conditions evolve.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Vanguard Small-Cap Value Index Fund ETF Shares 2.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.70%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 2.02%

The portfolio's average dividend yield of 2.02% contributes to its total return, providing a steady income stream in addition to capital appreciation. This yield, while not the highest, strikes a balance between income and growth, fitting for a balanced investment strategy.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Vanguard Small-Cap Value Index Fund ETF Shares 0.07%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • 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 by minimizing the drag on performance. This is particularly advantageous for a diversified portfolio where the compound effect of costs can be more pronounced over time.

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