A balanced and broadly diversified investment portfolio with a focus on global stocks and value orientation

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Balanced Investors

This portfolio suits an investor seeking balanced growth with moderate risk tolerance and a long-term horizon. It prioritizes steady returns while maintaining exposure to global equities, making it ideal for individuals looking to build wealth over time. The diversification across sectors and geographies aligns with a strategy designed to mitigate risk while capturing growth opportunities in both developed and emerging markets.

Positions

  • Vanguard Total Stock Market Index Fund ETF Shares
    VTI - US9229087690
    45.00%
  • Vanguard Total International Stock Index Fund ETF Shares
    VXUS - US9219097683
    40.00%
  • Vanguard Value Index Fund ETF Shares
    VTV - US9229087443
    10.00%
  • Vanguard Small-Cap Value Index Fund ETF Shares
    VBR - US9229086114
    5.00%

This portfolio is structured to provide broad exposure across major global markets, with a significant emphasis on stocks. The allocation is 45% in a total stock market ETF, 40% in international stocks, 10% in a value index, and 5% in small-cap value stocks. This composition indicates a strategic balance between domestic and international equities, with a tilt towards value investing. The inclusion of small-cap value stocks suggests an approach to capture potential growth in undervalued segments.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 11.01%, with a maximum drawdown of -35.19%. These figures suggest a resilient performance through market cycles, with significant recovery capabilities. The days contributing to 90% of returns highlight the impact of short-term, significant gains. Comparing this to benchmarks, the performance is indicative of a well-managed risk-return balance, suitable for investors seeking growth with a moderate risk appetite.

Projection Info

Monte Carlo simulations, based on historical data, project a wide range of outcomes. With 966 out of 1,000 simulations showing positive returns, the median simulation suggests a potential 281% growth. While promising, it's crucial to remember that these projections are not guarantees. They serve as a tool to visualize potential outcomes, emphasizing the importance of staying invested and maintaining a diversified portfolio to navigate uncertainty.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%
  • Other
    0%
  • No data
    0%

The portfolio's asset class distribution is heavily weighted towards stocks (99%), with a minimal cash holding (1%). This allocation is characteristic of a growth-oriented strategy, focusing on capital appreciation over liquidity or income. While this approach aligns with long-term growth objectives, investors should be mindful of their liquidity needs and risk tolerance, considering a more balanced asset class distribution if necessary.

Sectors Info

  • Technology
    21%
  • Financials
    19%
  • Industrials
    13%
  • Consumer Discretionary
    10%
  • Health Care
    10%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    4%
  • Real Estate
    3%
  • Utilities
    3%

Sector allocations show a diversified spread, with the highest concentrations in technology (21%) and financial services (19%). This sectoral distribution is reflective of the broader market trends and offers a balance between growth and stability. However, the significant exposure to technology and financial sectors may introduce volatility, suggesting a periodic review to ensure alignment with risk tolerance and market conditions.

Regions Info

  • North America
    63%
  • Europe Developed
    16%
  • Asia Emerging
    6%
  • Japan
    6%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Europe Emerging
    0%

Geographically, the portfolio is predominantly invested in North America (63%), with meaningful exposure to developed Europe (16%) and emerging Asian markets (6%). This diversified geographic allocation helps mitigate region-specific risks and capitalizes on global growth opportunities. However, investors may explore increasing exposure to underrepresented regions, like Latin America and Africa/Middle East, for enhanced diversification and potential growth.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    31%
  • Mid-cap
    20%
  • Small-cap
    7%
  • Micro-cap
    2%

The market capitalization breakdown—mega (38%), big (31%), medium (20%), small (7%), and micro (2%)—demonstrates a comprehensive coverage of companies of varying sizes. This distribution supports diversification and risk management, with a tilt towards larger, more stable companies. Investors might consider a slight increase in small and micro-cap exposures to potentially enhance returns, albeit with increased risk.

Dividends Info

  • Vanguard Small-Cap Value Index Fund ETF Shares 2.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Value Index Fund ETF Shares 2.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.98%

The portfolio's dividend yield averages at 1.98%, contributed by the individual ETFs' yields ranging from 1.20% to 2.80%. While the focus appears to be on growth rather than income, dividends contribute to the total return and provide a modest income stream. For investors seeking higher income, reallocating towards higher-yielding assets or sectors might be worth considering.

Ongoing product costs Info

  • Vanguard Small-Cap Value Index Fund ETF Shares 0.07%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Value Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

With an average Total Expense Ratio (TER) of 0.04%, the portfolio benefits from low costs, enhancing net returns over the long term. This cost efficiency is a significant advantage, especially in a low-yield environment. Investors should maintain vigilance on cost management as a key element of portfolio optimization, ensuring that any additions or reallocations continue to emphasize cost efficiency.

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.

The portfolio's current configuration suggests an efficient risk-return profile, potentially near the Efficient Frontier. This means it may already be optimized for the best possible risk-return ratio given the current assets and allocation. However, continuous monitoring and adjusting are essential to maintaining this optimization, especially as market conditions and investment goals evolve.

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