A balanced and broadly diversified portfolio with a focus on global stocks and consumer staples

Report created on May 1, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is structured around three major ETFs, with a 50% allocation to a total stock market index, 30% to an international stock index, and 20% to a consumer staples index. This composition suggests a balanced approach, aiming to capture the growth potential of the global stock market while mitigating risk through the stability of consumer staples. The heavy weighting towards ETFs indicates a preference for broad market exposure over picking individual stocks, which aligns with a strategy of diversification and risk management.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 10.07%, with a maximum drawdown of -32.61%. This performance suggests resilience and the potential for recovery from market downturns. The days contributing most to returns highlight the impact of significant market movements on portfolio performance. Comparing this to benchmark indices would offer insight into its relative resilience and growth potential, suggesting it has navigated market fluctuations effectively.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 211.2% in portfolio value. This forward-looking analysis, while based on historical data, underscores the inherent uncertainties in predicting market movements. It's important to note that these simulations offer scenarios, not guarantees. The high percentage of simulations with positive returns (95.7%) suggests optimism but should be balanced with an understanding that past performance is not indicative of future results.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily skewed towards stocks (99%), with a minimal cash reserve (1%). This allocation is indicative of a growth-oriented strategy but comes with higher volatility and risk. Diversification across different asset classes could provide a buffer against stock market fluctuations. However, the current setup is designed for investors with a balanced risk profile, comfortable with the inherent risks of stock market investments.

Sectors Info

  • Consumer Staples
    24%
  • Technology
    19%
  • Financials
    14%
  • Industrials
    9%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Telecommunications
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    2%

The sector allocation shows a diversified spread across consumer defensive, technology, and financial services, among others. The emphasis on consumer staples (24%) is strategic, offering potential stability in volatile markets. However, the significant technology exposure (19%) could introduce volatility. Balancing sector allocations in line with risk tolerance and market outlook could further optimize the portfolio's performance.

Regions Info

  • North America
    72%
  • Europe Developed
    12%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America (72%), with meaningful exposure to developed Europe (12%) and emerging Asian markets (5%). This distribution reflects a strong home bias, which might limit exposure to potential growth in emerging markets. Considering a more balanced geographic allocation could enhance diversification and tap into growth opportunities outside of developed markets.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    30%
  • Mid-cap
    20%
  • Small-cap
    5%
  • Micro-cap
    2%

The market capitalization breakdown shows a preference for mega (41%) and big (30%) cap stocks, which typically offer stability and lower volatility. However, the relatively smaller allocations to medium, small, and micro caps suggest a cautious approach towards higher-risk investments. Including a wider range of market caps could potentially increase returns, 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, this portfolio appears well-positioned for a balanced risk-return profile. However, continuous optimization could further enhance its position on the Efficient Frontier, ensuring the best possible risk-return trade-off. This might involve adjusting asset allocations based on changing market conditions or personal risk tolerance, always aiming for the most efficient portfolio composition.

Dividends Info

  • Fidelity® MSCI Consumer Staples Index ETF 2.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.40%
  • Vanguard Total International Stock Index Fund ETF Shares 3.10%
  • Weighted yield (per year) 2.07%

With an overall dividend yield of 2.07%, the portfolio provides a steady income stream, contributing to total returns. The higher yield from the international stock ETF (3.10%) complements the lower yield from the total stock market ETF (1.40%), balancing income generation with growth. Regularly reviewing dividend-yielding investments can ensure they continue to meet income and growth objectives.

Ongoing product costs Info

  • Fidelity® MSCI Consumer Staples Index ETF 0.08%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.05%

The portfolio's total expense ratio (TER) of 0.05% is impressively low, enhancing net returns. Keeping costs minimized is crucial for long-term investment success, as even small differences in fees can significantly impact compounded returns over time. This cost efficiency is a positive aspect of the portfolio, supporting better performance relative to more expensive alternatives.

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