Balanced and highly diversified portfolio with a strong emphasis on global equities and low costs

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

This portfolio predominantly invests in global equities through ETFs, with a significant allocation towards the US market (54%) and international stocks (36%). A smaller portion is dedicated to short-term treasury bonds (10%), providing liquidity and reducing overall volatility. The allocation across broad market ETFs and treasury bonds suggests a balanced approach to growth and stability, aiming to capture global market returns while mitigating short-term market downturns through fixed income securities.

Growth Info

Historically, the portfolio has delivered a Compound Annual Growth Rate (CAGR) of 13.33%, with a maximum drawdown of -24.85%. This performance indicates a resilient growth trajectory despite market fluctuations, highlighting the portfolio's ability to recover from downturns. The days contributing to 90% of returns being concentrated in 23.0 days underscores the impact of significant market movements on performance, emphasizing the importance of staying invested over the long term.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. The median projection suggests a potential 278% increase, with a 95% chance of positive returns. This forward-looking analysis, while not a guarantee, supports the portfolio's design for balanced growth, with a significant portion of simulations indicating robust long-term potential.

Asset classes Info

  • Stocks
    90%
  • Cash
    10%

The asset class distribution, with 90% in stocks and 10% in cash equivalents, underscores a growth-oriented strategy while maintaining some liquidity. This allocation is suitable for a balanced risk profile, leveraging the growth potential of equities and the stability of cash equivalents to cushion against short-term market volatility.

Sectors Info

  • Technology
    22%
  • Financials
    16%
  • Industrials
    11%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Basic Materials
    4%
  • Energy
    3%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation is diversified across technology, financial services, industrials, and consumer cyclicals, among others. This spread mitigates sector-specific risks and capitalizes on growth opportunities across the economy. The heavy weighting in technology and financial services reflects a common strategy for growth-oriented portfolios, given their significant role in economic expansion and innovation.

Regions Info

  • North America
    57%
  • Europe Developed
    14%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic distribution is well-diversified, with a majority in North America and meaningful exposures to developed Europe, emerging Asia, and Japan. This global reach enhances the portfolio's growth potential by tapping into various economic cycles and market dynamics, although it also introduces geopolitical and currency risks that are inherent in international investments.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    28%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    1%

The market capitalization breakdown shows a leaning towards mega and big-cap companies, which tend to offer stability and resilience during market downturns. The presence of medium, small, and micro-cap stocks adds a layer of growth potential, albeit with higher volatility and risk. This blend supports a balanced growth strategy, aiming to capture both the safety of large caps and the upside of smaller companies.

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 Efficient Frontier analysis suggests that the portfolio is close to optimal for its risk level, with a potential for slightly higher expected returns at the same risk level. This indicates that the current allocation is well-designed for balanced growth, though minor adjustments could enhance performance without increasing risk significantly.

Dividends Info

  • iShares Core MSCI Total International Stock ETF 3.10%
  • iShares® 0-3 Month Treasury Bond ETF 4.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 2.17%

The dividend yield across the portfolio averages to 2.17%, contributing to total returns through income in addition to capital appreciation. This yield, while modest, complements the growth strategy by providing a steady income stream, which can be particularly beneficial in volatile or down markets.

Ongoing product costs Info

  • iShares Core MSCI Total International Stock ETF 0.07%
  • iShares® 0-3 Month Treasury Bond ETF 0.07%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.05%

With an average total expense ratio (TER) of 0.05%, the portfolio is cost-efficient, maximizing the investor's return potential. Low costs are crucial for long-term growth, as they compound positively over time, leaving more money invested to grow.

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