A balanced and broadly diversified portfolio with a focus on steady growth and low costs

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 primary ETFs, focusing on the S&P 500, international stocks, and consumer staples, making it broadly diversified across major asset classes and sectors. The heavy weighting towards the Vanguard S&P 500 ETF ensures exposure to the largest U.S. companies, while the Vanguard Total International Stock ETF provides a substantial international presence. The inclusion of the Fidelity® MSCI Consumer Staples Index ETF adds a defensive angle, potentially offering stability during market downturns. This composition aligns well with a balanced investment strategy, aiming for growth while managing risk through diversification.

Growth Info

Historical performance showcases a Compound Annual Growth Rate (CAGR) of 10.33%, with a maximum drawdown of -32.12%. This indicates a relatively strong past performance, with the ability to recover from significant market dips. The days contributing to 90% of returns being concentrated in just 23.0 days highlights the impact of short-term significant gains. This performance, compared to broader market benchmarks, suggests the portfolio's strategy has been effective, though investors should remember past performance is not indicative of future results.

Projection Info

Forward projections, based on Monte Carlo simulations, suggest a wide range of potential outcomes, with a median projected annualized return of 9.98%. This method uses historical data to estimate future performance, providing a probabilistic range of outcomes. While useful for planning, it's important to note these projections are hypothetical and subject to change based on actual market conditions. Investors should use these figures as one of many tools in decision-making, not as guarantees.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily skewed towards stocks (99%), with a minimal cash holding (1%). This allocation is typical for growth-oriented portfolios but does carry higher volatility and risk compared to those with significant allocations in bonds or other asset classes. Given the portfolio's aim for balanced growth, this stock-heavy approach aligns with expectations for higher long-term returns, albeit with an acceptance of short-term market fluctuations.

Sectors Info

  • Consumer Staples
    25%
  • Technology
    19%
  • Financials
    14%
  • Consumer Discretionary
    9%
  • Industrials
    8%
  • Health Care
    8%
  • Telecommunications
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation reveals a diversified approach, with the largest exposures in consumer defensive, technology, and financial services. This mix balances sectors with stable earnings and those with higher growth potential. The significant position in consumer staples, typically less sensitive to economic cycles, provides a defensive buffer. However, investors might consider if the current sector weights optimally reflect their outlook on future sector performance and risk tolerance.

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%

Geographic allocation underscores a strong bias towards North America (72%), supplemented by developed European (12%) and emerging Asian (5%) exposures. This distribution supports diversification across different economic environments, though the heavy North American focus may limit exposure to potential growth in emerging markets. Investors should evaluate their comfort with this geographic distribution, especially considering global economic shifts and opportunities.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    31%
  • Mid-cap
    20%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown—dominated by mega (44%) and big (31%) cap stocks—indicates a preference for established, large companies, known for their stability and potential for steady growth. Medium, small, and micro caps represent smaller portions, suggesting a cautious approach to risk. This setup is typically suited for investors seeking growth with moderated volatility, though some may seek greater exposure to smaller caps for higher growth potential.

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 regarding risk-return optimization, based on its current assets and allocation. While adjustments could potentially enhance returns or reduce volatility, the portfolio's existing setup provides a solid foundation for balanced growth. However, continuous review and adjustment in response to changing market conditions and investment objectives are essential for maintaining optimal alignment with the Efficient Frontier.

Dividends Info

  • Fidelity® MSCI Consumer Staples Index ETF 2.20%
  • Vanguard S&P 500 ETF 1.40%
  • Vanguard Total International Stock Index Fund ETF Shares 3.10%
  • Weighted yield (per year) 2.07%

The dividend yields from the ETFs contribute to the portfolio's total yield of 2.07%, offering a supplementary income stream on top of potential capital gains. This yield mix, coming from both domestic and international sources, provides a balanced approach to income generation, aligning with the portfolio's broader strategy for balanced growth. Investors might consider the role of these dividends in their overall income strategy, especially in lower yield environments.

Ongoing product costs Info

  • Fidelity® MSCI Consumer Staples Index ETF 0.08%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.05%

The portfolio benefits from exceptionally low costs, with a total expense ratio (TER) averaging 0.05%. This efficiency is crucial for long-term growth, as lower costs directly translate to higher net returns for investors. The choice of low-cost ETFs reflects a strategic approach to maximizing returns by minimizing expenses, a practice that aligns with best investment principles.

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