Balanced portfolio with strong emphasis on stocks and diversified exposure across sectors and geographies

Report created on Jul 22, 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 primarily invests in equities, with a significant 50% allocation to a global stock ETF, complemented by focused investments in growth, value, and momentum strategies within the U.S. market. The remaining 10% in bonds provides a conservative balance, aiming to mitigate volatility. The broad diversification across asset classes and investment strategies suggests a well-considered approach to capturing market growth while seeking to manage risk through a modest bond holding.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 11.74%, with a maximum drawdown of -30.88%. This performance indicates a strong growth trajectory, albeit with notable volatility, as evidenced by the significant drawdown. The days contributing to 90% of returns being limited to 19 suggests that the portfolio's gains are heavily concentrated in short, robust market rallies, a common characteristic of equity-heavy portfolios.

Projection Info

Utilizing Monte Carlo simulations, which forecast future performance based on historical data, this portfolio's projections span a wide range of outcomes. With 978 out of 1,000 simulations showing positive returns, the median projection suggests a 297.5% increase, highlighting the potential for substantial growth. However, it's crucial to remember that such simulations are speculative, relying on past trends that may not predict future market movements accurately.

Asset classes Info

  • Stocks
    89%
  • Bonds
    10%
  • Cash
    1%

The portfolio's allocation leans heavily towards stocks (89%), with a minor allocation in bonds (10%) and a negligible cash position (1%). This composition underscores a growth-oriented strategy, favoring capital appreciation over income or stability. While the bond allocation offers some risk mitigation, the overwhelming focus on equities suggests a higher risk tolerance, relying on stock market performance for returns.

Sectors Info

  • Technology
    23%
  • Financials
    16%
  • Industrials
    10%
  • Consumer Discretionary
    9%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation is well-diversified, with technology (23%) and financial services (16%) leading, followed by industrials, consumer cyclicals, and healthcare. This distribution mirrors broader market trends, with a strong emphasis on sectors that have historically driven market growth. However, the significant weighting in technology also introduces sector-specific risks, including potential volatility from market corrections or regulatory changes.

Regions Info

  • North America
    72%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic allocation is predominantly North American (72%), with modest exposure to developed Europe (8%) and emerging Asian markets (3%). This concentration in developed markets, particularly the U.S., aligns with the portfolio's growth orientation but may limit exposure to emerging market growth opportunities. Diversifying further into emerging markets could enhance growth potential and risk mitigation through geographic diversification.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    30%
  • Mid-cap
    17%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's market capitalization exposure is skewed towards mega (37%) and big (30%) cap stocks, with lesser allocations to medium (17%), small (4%), and micro (1%) caps. This tilt towards larger companies is consistent with the portfolio's risk-balanced profile, as these firms typically offer more stability and less volatility than their smaller counterparts. However, incorporating more small and micro-cap investments could enhance return potential, albeit at a higher 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.

The current allocation appears well-positioned on the Efficient Frontier, suggesting an optimal balance between risk and return based on historical data. However, it's important to periodically reassess this balance, as shifting market dynamics can alter the risk-return profile of different assets. Regularly reviewing and adjusting the portfolio in response to changes in financial goals and market conditions can help maintain this optimization.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Vanguard U.S. Momentum Factor 0.90%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.50%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Vanguard Value Index Fund ETF Shares 2.20%
  • Weighted yield (per year) 1.70%

The dividend yield across the portfolio averages 1.70%, with the bond component contributing a higher yield of 3.80%. This yield reflects a balanced approach, capturing income through dividends and interest payments without compromising the portfolio's growth orientation. For investors seeking both growth and income, this dividend strategy offers a modest but consistent income stream.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Vanguard U.S. Momentum Factor 0.13%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.10%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Vanguard Value Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.07%

With a total expense ratio (TER) of 0.07%, the portfolio benefits from low costs, enhancing net returns over time. Low-cost index funds are a prudent choice for long-term investors, as they minimize the drag on performance attributable to fees. Maintaining this focus on cost efficiency is key to maximizing investment growth.

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