Balanced portfolio with strong ETF presence and significant precious metals exposure

Report created on Jul 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 showcases a strategic blend of equity and commodity ETFs, with a notable emphasis on precious metals, alongside traditional stock and bond holdings. The majority allocation towards the Vanguard Total Stock Market and International Stock Index Fund ETFs indicates a broad market approach, complemented by targeted investments in palladium and gold. This composition suggests a balance between seeking growth through global equities and hedging against market volatility with commodities.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.56%, with a significant drawdown of -34.90%. This performance underscores the portfolio's ability to generate substantial returns, albeit with periods of notable volatility. The concentrated days of returns highlight the impact of short-term market movements on overall performance, emphasizing the importance of a long-term investment perspective.

Projection Info

Monte Carlo simulations, projecting future performance based on historical data, suggest a wide range of outcomes, with a median increase of 355.7%. While these projections offer a glimpse into potential growth, it's crucial to remember that they are based on past trends, which may not predict future market movements accurately. This underscores the importance of ongoing portfolio review and adjustment in response to changing market conditions.

Asset classes Info

  • Stocks
    70%
  • Other
    27%
  • Bonds
    3%
  • Cash
    1%

The allocation across asset classes, with 70% in stocks, 27% in other (primarily commodities), and a minimal bond presence, indicates a growth-oriented strategy with a significant hedge against inflation and market downturns through precious metals. This mix supports the portfolio's balanced risk profile, offering both growth potential and protection against volatility.

Sectors Info

  • Technology
    16%
  • Basic Materials
    11%
  • Financials
    10%
  • Industrials
    7%
  • Consumer Discretionary
    7%
  • Health Care
    6%
  • Telecommunications
    5%
  • Consumer Staples
    4%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    2%

Sectoral allocation highlights a diversified approach, with technology, basic materials, and financial services leading the exposure. This diversification across sectors can mitigate risks associated with sector-specific downturns, though the heavy allocation towards basic materials, primarily through precious metals ETFs, adds a layer of commodity risk that investors should monitor.

Regions Info

  • North America
    47%
  • Europe Developed
    9%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    2%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographic exposure is predominantly in North America, followed by developed Europe and emerging Asian markets. This distribution underscores a focus on established economies for core holdings, with selective exposure to emerging markets for growth. Diversifying further into underrepresented regions could enhance global exposure and potentially reduce geographic concentration risk.

Market capitalization Info

  • Mega-cap
    28%
  • No data
    27%
  • Large-cap
    22%
  • Mid-cap
    15%
  • Small-cap
    4%
  • Micro-cap
    1%

The market capitalization breakdown, with a mix of mega, big, and medium-sized companies, suggests a tilt towards stability and performance potential of large-cap entities. However, the presence of smaller caps and a significant unknown category indicates room for refinement in understanding and potentially optimizing market cap exposure for risk and return balance.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Vanguard Growth Index Fund ETF Shares
    Vanguard S&P 500 ETF
    High correlation

The high correlation among the Vanguard Total Stock Market, Growth Index Fund, and S&P 500 ETFs indicates overlapping exposures that may not provide the intended diversification benefits. Reducing redundancies in highly correlated assets can enhance portfolio efficiency by diversifying risk without sacrificing potential returns.

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.

Optimizing the portfolio involves addressing the identified high correlation among certain ETFs to improve diversification. By reallocating from overlapping assets to underrepresented sectors or geographies, the portfolio can achieve a more efficient risk-return profile. This adjustment should consider the investor's risk tolerance and investment horizon to maintain alignment with their financial goals.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • VanEck Gold Miners ETF 0.80%
  • Alpha Architect U.S. Quantitative Momentum ETF 1.40%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.26%

The portfolio's dividend yield, while modest, contributes to total returns, especially in volatile or bear markets. The yields from bond and equity ETFs offer a mix of income and growth, supporting the portfolio's balanced approach. Regularly reviewing dividend-yielding investments can ensure they align with the overall investment strategy and income needs.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • VanEck Gold Miners ETF 0.51%
  • SPDR® Gold Shares 0.40%
  • abrdn Physical Palladium Shares ETF 0.60%
  • Alpha Architect U.S. Quantitative Momentum ETF 0.29%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.22%

With a total Expense Ratio (TER) of 0.22%, the portfolio is cost-efficient, minimizing the drag on returns due to fees. This low cost structure is commendable, especially given the diversified nature of the holdings. Maintaining focus on cost efficiency is vital for enhancing long-term performance.

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