Balanced and highly diversified portfolio with a strategic mix across asset classes and global markets

Report created on Aug 2, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

Your portfolio is strategically composed of a mix of ETFs, focusing on total stock market, short-term corporate bonds, international stocks, and emerging markets. With 45% in a total stock market ETF, 20% in short-term corporate bonds, another 20% in international stocks, and 15% in emerging markets, the allocation demonstrates a balanced approach between equity and fixed income, aiming for growth while managing risk through diversification. This blend not only spreads risk across different asset types but also across geographic regions, making it resilient against market volatility.

Growth Info

The historical performance of your portfolio, with a Compound Annual Growth Rate (CAGR) of 9.42% and a maximum drawdown of -29.81%, showcases its ability to generate strong returns while experiencing significant volatility. The max drawdown indicates the largest drop from peak to trough, which is an important risk metric. The days that make up 90% of returns being concentrated in 26.0 days highlight the unpredictable nature of stock returns and the importance of staying invested through market cycles to capture gains.

Projection Info

Monte Carlo simulations, which ran 1,000 scenarios, project a wide range of outcomes for your portfolio. The 50th percentile outcome at 161.1% growth is promising, indicating that the median scenario outperforms historical median returns. However, the 5th percentile at -13.0% underscores potential short-term losses, emphasizing the need for a long-term investment horizon. Remember, while Monte Carlo provides a broad spectrum of potential outcomes using historical data, it cannot predict future market movements with certainty.

Asset classes Info

  • Stocks
    79%
  • Bonds
    20%
  • Cash
    1%

Your portfolio's asset class allocation, with 79% in stocks and 20% in bonds, aligns with a balanced risk profile that seeks growth while mitigating risk through fixed income securities. The small cash holding provides liquidity. This allocation is suitable for investors with a moderate risk tolerance, balancing the potential for higher returns through equities with the stability offered by bonds.

Sectors Info

  • Technology
    20%
  • Financials
    14%
  • Consumer Discretionary
    9%
  • Industrials
    9%
  • Health Care
    7%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Basic Materials
    3%
  • Energy
    3%
  • Real Estate
    2%
  • Utilities
    2%

The sectoral distribution within your portfolio, led by technology, financial services, and consumer cyclicals, reflects a growth-oriented strategy. However, the significant weight in technology could expose the portfolio to sector-specific risks, such as regulatory changes or economic downturns affecting tech stocks more severely. Diversifying across more sectors or reducing the concentration in technology could mitigate such risks.

Regions Info

  • North America
    46%
  • Asia Emerging
    12%
  • Europe Developed
    8%
  • Asia Developed
    5%
  • Japan
    3%
  • Africa/Middle East
    2%
  • Latin America
    2%
  • Australasia
    1%

Geographically, your portfolio is well-diversified, with a substantial allocation to North America and meaningful exposure to emerging markets in Asia and developed markets in Europe. This global diversification helps spread geopolitical and currency risks. Nonetheless, the current global allocation may benefit from a more detailed review to ensure it aligns with the latest market trends and economic forecasts.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    24%
  • Mid-cap
    14%
  • Small-cap
    4%
  • Micro-cap
    1%

The market capitalization breakdown, with a focus on mega and big cap stocks, suggests stability and lower volatility but may limit potential high-growth opportunities found in smaller cap stocks. Incorporating a slightly higher percentage of medium, small, or even micro-cap stocks could enhance growth prospects, 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.

Considering the Efficient Frontier, your portfolio appears to be well-positioned for optimizing the risk-return trade-off based on its current asset allocation. However, regularly reviewing your portfolio against the Efficient Frontier can identify opportunities to adjust allocations for potentially improved risk-adjusted returns. This process ensures your investments remain aligned with your risk tolerance and financial goals.

Dividends Info

  • Vanguard Short-Term Corporate Bond Index Fund ETF Shares 3.80%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.80%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 2.30%

The overall dividend yield of 2.30% contributes to the portfolio's total return, providing a steady income stream in addition to potential capital gains. This yield, derived from a mix of stocks and bonds, highlights the portfolio's balanced approach, offering both growth potential and income, which is particularly beneficial in volatile or declining markets.

Ongoing product costs Info

  • Vanguard Short-Term Corporate Bond Index Fund ETF Shares 0.04%
  • 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 a total expense ratio (TER) of 0.04%, your portfolio benefits from low costs, which is commendable. Lower costs directly translate to higher net returns over time, emphasizing the efficiency of investing in low-cost ETFs. Continuously monitoring and minimizing investment costs remains a key strategy for enhancing long-term portfolio performance.

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