A balanced and highly diversified portfolio with a focus on global equities and minimal costs

Report created on Jan 31, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio comprises 60% Vanguard Total Stock Market ETF, 30% Vanguard Total International Stock ETF, and 10% Vanguard Total Bond Market ETF. This blend reflects a strong equity focus with a modest bond allocation, aligning with a balanced risk profile. The allocation is consistent with a typical balanced portfolio, targeting growth through equities while mitigating risk with bonds. To further optimize, consider if the bond allocation meets your risk tolerance, or if a slight increase might provide more stability.

Growth Info

Historically, the portfolio has achieved a CAGR of 10.39%, indicating strong growth potential. However, it experienced a significant maximum drawdown of -32.13%, highlighting potential volatility. Compared to benchmarks, this performance is competitive, affirming the portfolio's growth capacity. Recognizing that past performance doesn't guarantee future results, it's crucial to assess whether the level of risk aligns with your financial goals and comfort level, especially during market downturns.

Projection Info

Using Monte Carlo simulations, which project future outcomes based on historical data, the portfolio shows a median projected return of 140.8% and an annualized return of 7.55%. While 947 out of 1,000 simulations resulted in positive returns, it's important to note that simulations can't predict exact future performance. They offer a range of potential outcomes, helping you gauge risk levels and set realistic expectations. Regularly revisiting projections can keep your strategy aligned with evolving market conditions.

Asset classes Info

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

The portfolio's asset class allocation is 89% stocks and 10% bonds, with 1% cash. This allocation is well-balanced for a growth-oriented investor with a moderate risk tolerance. Compared to typical benchmarks, the high equity exposure aligns with growth objectives, while the bond allocation provides some stability. To maintain diversification, ensure the bond allocation continues to meet your risk profile, especially if market conditions shift.

Sectors Info

  • Technology
    23%
  • Financials
    15%
  • Consumer Discretionary
    10%
  • Industrials
    10%
  • Health Care
    9%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    3%
  • Utilities
    2%

Sector allocation shows a significant 23% in technology, followed by 15% in financial services and 10% in consumer cyclicals. This tech-heavy allocation may lead to higher volatility during market shifts, such as interest rate changes. Compared to common benchmarks, the sector distribution is diverse, supporting growth across various industries. Regularly reviewing sector trends and adjusting allocations can help manage risk and capitalize on emerging opportunities.

Regions Info

  • North America
    62%
  • Europe Developed
    12%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The portfolio has a geographic allocation of 62% in North America, 12% in Europe Developed, and smaller exposures elsewhere. This concentration in North America aligns with many benchmarks but may limit exposure to emerging markets with high growth potential. Diversifying geographically can mitigate regional risks and tap into global growth. Consider whether increasing exposure to underrepresented regions aligns with your investment goals.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    28%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    1%

The portfolio's market capitalization is diversified, with 38% in mega caps and 28% in big caps. This mix supports stability and growth, as larger companies often provide more consistent returns. The smaller allocations to medium, small, and micro caps offer growth potential but can increase volatility. Ensuring a balance across market caps can enhance diversification and align with your risk tolerance.

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 can be optimized using the Efficient Frontier, which seeks the best risk-return ratio for the current asset mix. This optimization doesn't imply a need for diversification changes but rather focuses on maximizing returns for a given risk level. Regularly revisiting optimization strategies can align your portfolio with changing market conditions and personal risk preferences.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.60%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 3.20%
  • Weighted yield (per year) 2.04%

The portfolio yields an average dividend of 2.04%, with the bond ETF contributing the highest yield at 3.60%. Dividends can provide a steady income stream, especially during market volatility. For growth-focused investors, dividends may be reinvested to enhance compounding returns. Assess if the current yield aligns with your income needs or if adjustments are necessary to balance growth and income.

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 0.08%
  • Weighted costs total (per year) 0.04%

The portfolio's total expense ratio (TER) is an impressively low 0.04%, supporting better long-term performance by minimizing costs. This low cost structure is a positive aspect, aligning with best practices for maximizing net returns. Regularly reviewing and managing costs can ensure that your portfolio remains efficient, allowing more of your investment to work toward achieving your financial goals.

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