A balanced and highly diversified portfolio with a strong focus on stocks and global exposure

Report created on Aug 20, 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 predominantly comprises ETFs that cover the total stock market, international stocks, and the bond market, with allocations of 70%, 20%, and 10%, respectively. This structure underlines a strategic emphasis on equities for growth while maintaining a bond component for risk mitigation. The high diversification score reflects a broad exposure across sectors and geographies, aligning with best practices for reducing unsystematic risk. The balance between domestic and international equities enhances global diversification, which is crucial for tapping into various economic growth rates and mitigating region-specific risks.

Growth Info

The portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 12.63%, with a maximum drawdown of -32.47%. These figures suggest a resilient performance across market cycles, highlighting the portfolio's ability to recover from downturns. The days contributing to 90% of returns emphasize the impact of significant market movements on overall performance. Comparing this CAGR with benchmarks for similar risk profiles can provide insight into the portfolio's relative performance, suggesting it has navigated market volatility effectively while capitalizing on growth opportunities.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, show a wide range of outcomes with a median increase of 199.2%. While this method offers a broad view of potential scenarios, it's crucial to remember that it relies on past trends, which may not predict future movements accurately. Nonetheless, the high number of simulations with positive returns underscores the portfolio's robustness, indicating a high likelihood of future growth despite market uncertainties.

Asset classes Info

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

The allocation across asset classes with 89% in stocks and 10% in bonds reflects a growth-oriented strategy with a moderate risk cushion. This mix supports long-term capital appreciation while providing some income and volatility dampening through bonds. The small cash holding enhances liquidity, allowing for flexibility in rebalancing or capitalizing on investment opportunities. Comparing these allocations to those of a typical balanced portfolio might suggest a slightly higher appetite for risk, given the substantial equity exposure.

Sectors Info

  • Technology
    25%
  • Financials
    14%
  • Industrials
    9%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation reveals a heavy weighting towards technology and financial services, which may drive growth but also introduce sector-specific risks, such as regulatory changes or economic cycles affecting these industries. The spread across industrials, consumer cyclicals, and healthcare offers a counterbalance, contributing to stability and potential resilience against sector-specific downturns. This sectoral distribution aligns with a growth-focused strategy but warrants periodic review to manage concentration risk.

Regions Info

  • North America
    71%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographic allocation is predominantly in North America (71%), with meaningful exposure to developed Europe and emerging Asian markets. This distribution suggests a well-considered strategy for capturing growth in major economies while exploring opportunities in faster-growing regions. However, the relatively low exposure to emerging markets and specific regions like Latin America and Africa/Middle East may limit potential gains from high-growth areas, suggesting an area for potential enhancement.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    28%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    2%

The market capitalization breakdown, with a focus on mega and big cap stocks, indicates a preference for established, large companies likely to offer stability and consistent returns. While this may reduce volatility, it could also limit exposure to high-growth potential in smaller companies. Diversifying further into medium, small, and micro-cap stocks could introduce more growth opportunities, albeit with higher 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.

Regarding risk vs. return optimization, the portfolio appears well-positioned on the Efficient Frontier, indicating an efficient allocation that balances risk and return. While it's based on current allocations, exploring alternatives within this framework could reveal opportunities to further enhance this balance. Regular reviews and adjustments in response to changing market conditions or investment goals are essential for maintaining this optimization.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.76%

Dividend yields from the bond and stock ETFs contribute to the portfolio's total yield of 1.76%, providing a steady income stream in addition to potential capital appreciation. This yield is particularly relevant for investors seeking regular income or those looking to reinvest dividends for compound growth. The mix of yields underscores the portfolio's balanced approach, combining growth potential with income generation.

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%

The total Expense Ratio (TER) of 0.03% is impressively low, maximizing the potential for net returns. Keeping costs minimal is crucial for long-term investment success, as high fees can significantly erode earnings over time. This portfolio exemplifies cost efficiency, which is a key factor in its favorable performance and an aspect that should be maintained.

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