A balanced and highly diversified portfolio focusing on stocks and bonds with global exposure

Report created on Jul 28, 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 is structured with a significant emphasis on equities, comprising 75% of its allocation, split between U.S. and international stocks. The remaining 25% is allocated to bonds, with a minor cash position. This composition is in line with a balanced investment strategy that seeks growth through stock investments while using bonds to mitigate volatility and risk. The inclusion of a real estate investment trust (REIT) fund adds an additional layer of diversification and potential income through real estate exposure.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 9.25%, with a maximum drawdown of -28.39%. These figures suggest a strong performance, particularly given the balanced nature of the portfolio. The days contributing most to returns highlight the impact of significant market movements on performance. This historical performance, while indicative of past success, should be viewed with the understanding that past results do not guarantee future performance.

Projection Info

Monte Carlo simulations, projecting 1,000 potential outcomes, show a wide range of possible future performances. With a median 50th percentile growth of 140.5%, the simulations suggest optimism for future growth, while also highlighting potential downside risks (5th percentile at -6.6%). These projections are useful for understanding potential volatility and outcomes but should be seen as one of many tools in investment decision-making.

Asset classes Info

  • Stocks
    75%
  • Bonds
    24%
  • Cash
    1%

The allocation across asset classes with a heavy weighting in stocks versus bonds reflects a balanced approach, leaning towards growth. This mix is generally suitable for investors with a moderate risk tolerance and a long-term investment horizon. The small cash holding provides liquidity, which can be beneficial for taking advantage of market opportunities or covering unexpected expenses.

Sectors Info

  • Technology
    18%
  • Financials
    12%
  • Industrials
    8%
  • Consumer Discretionary
    8%
  • Health Care
    7%
  • Real Estate
    7%
  • Telecommunications
    6%
  • Consumer Staples
    4%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%

The sectoral allocation shows a diversified approach, with the highest exposure in technology and financial services. This sector spread is reflective of the broader market composition and suggests a strategy that is well-aligned with capturing overall market growth. However, the concentration in technology and financial services may also mean higher volatility linked to these sectors' performance.

Regions Info

  • North America
    53%
  • No data
    24%
  • Europe Developed
    10%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic exposure is predominantly in North America, with significant international diversification. This global spread helps mitigate risks associated with any single country or region. However, the portfolio may benefit from increased exposure to emerging markets and developed Asia, which could offer higher growth potential albeit with increased risk.

Market capitalization Info

  • Mega-cap
    30%
  • Large-cap
    23%
  • Mid-cap
    16%
  • Small-cap
    5%
  • Micro-cap
    1%

The market capitalization breakdown indicates a balanced approach, with a tilt towards larger companies. This bias towards mega and big cap stocks is likely to reduce volatility but may also limit potential upside from smaller, high-growth companies. Considering a slight increase in medium to small-cap exposure could enhance growth prospects while introducing manageable additional 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, the portfolio appears well-optimized for a balance of risk and return based on its current assets. Any adjustments to further optimize along the Efficient Frontier would involve reassessing the risk-return trade-off of each asset class and potentially adjusting the allocation ratios to achieve an even more efficient risk-return profile.

Dividends Info

  • Vanguard Total Bond Market Index Fund Admiral Shares 3.50%
  • VANGUARD REIT INDEX FUND ADMIRAL SHARES 2.80%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 2.10%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.90%
  • Weighted yield (per year) 1.91%

The dividend yield of the portfolio, averaging 1.91%, contributes to the total return, providing a steady income stream in addition to potential capital gains. This yield, while not the highest, balances income generation with growth potential. Investors relying on their portfolio for income might consider slightly increasing allocations to higher-yielding assets, mindful of the additional risk this may entail.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund Admiral Shares 0.04%
  • VANGUARD REIT INDEX FUND ADMIRAL SHARES 0.13%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 0.09%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.04%
  • Weighted costs total (per year) 0.06%

With a total expense ratio (TER) of 0.06%, the portfolio's costs are impressively low, which is crucial for enhancing long-term returns. Lower costs mean more of the investment's return is retained by the investor, a fundamental principle of successful long-term investing.

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