A balanced and highly diversified portfolio with a strategic mix of stocks and bonds

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

The portfolio is structured around a core of diversified ETFs, with a significant emphasis on stocks (79%) and a substantial allocation to bonds (20%). This blend indicates a balanced approach, aiming to capture growth through equities while using bonds to mitigate volatility. The selection of ETFs spans total stock market, international stocks, emerging markets, and short-term corporate bonds, reflecting a comprehensive approach to diversification across asset classes, sectors, and geographies.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 9.42%, with a maximum drawdown of -29.81%. This performance suggests resilience in varied market conditions, attributed to its diversified nature and balanced asset allocation. The days contributing most significantly to returns highlight the importance of staying invested over the long term to capture key growth periods, underscoring the potential risks of market timing.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. While past performance is not indicative of future results, these projections offer a glimpse into potential growth, with a median increase of 162.2%. This analysis supports the strategy of maintaining a diversified, balanced portfolio to navigate market uncertainties.

Asset classes Info

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

The allocation to stocks and bonds is well-suited for a balanced investment strategy. Stocks offer growth potential, while bonds provide income and act as a buffer against stock market volatility. This combination is particularly effective for investors with a moderate risk tolerance, aiming for growth while seeking to minimize large fluctuations in portfolio value.

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 sector allocation shows a heavy weighting towards technology and financial services, followed by consumer cyclicals and industrials. This sector spread is reflective of the broader market composition, offering exposure to both cyclical sectors, which can offer growth in expanding economies, and more stable, defensive sectors. However, investors should be mindful of overexposure to any single sector, especially in rapidly changing economic environments.

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%

Geographic allocation emphasizes North America, with significant exposure to emerging markets in Asia and developed markets in Europe. This global diversification helps mitigate regional risks and capitalizes on growth opportunities across different economies. However, investors should periodically review geographic exposure to ensure alignment with global economic trends and personal investment goals.

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 large-cap stocks, suggests a preference for stability and lower volatility associated with larger, established companies. While this may reduce exposure to the high growth potential of smaller companies, it aligns with the portfolio's balanced risk profile. Investors might consider a small allocation to smaller caps for potential growth.

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 suggests a well-optimized portfolio along the Efficient Frontier, indicating a favorable balance between risk and return. While always subject to market changes, this balance is crucial for achieving long-term investment goals without taking on unnecessary risk. Regular reviews and adjustments will ensure the portfolio continues to meet the investor's objectives as market conditions evolve.

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 portfolio's dividend yield of 2.30% contributes to its total return, offering a steady income stream in addition to potential capital appreciation. This yield, while modest, enhances the portfolio's attractiveness for income-focused investors, especially in low-interest-rate environments. Regular dividend income can also be reinvested to compound growth.

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 an overall expense ratio of 0.04%, the portfolio is cost-efficient, maximizing the investor's potential net returns. Low costs are crucial for long-term investment success, as they compound over time, significantly impacting total portfolio growth. This efficiency is a testament to the selection of low-cost ETFs, aligning with best practices in investment management.

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