A balanced and highly diversified portfolio with a focus on global equities and bonds

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 showcases a strategic balance between equities and bonds, with a 75% allocation in stocks and a 25% allocation in bonds, complemented by a minimal cash position. The emphasis on Vanguard ETFs across both domestic and international markets, including emerging markets, indicates a well-thought-out approach to diversification. This structure is designed to mitigate risk while capturing growth from a broad spectrum of global equities.

Growth Info

Historical performance, with a Compound Annual Growth Rate (CAGR) of 8.96% and a maximum drawdown of -26.68%, suggests resilience and decent growth over time. The days contributing to 90% of returns highlight the portfolio's potential for significant gains on relatively few, but impactful, days. This performance, when benchmarked against a balanced risk profile, indicates a strong alignment with the expected outcomes of a diversified investment strategy.

Projection Info

Monte Carlo simulations, employing thousands of hypothetical scenarios to predict future performance, suggest a wide range of outcomes with a median increase of 122.6%. This projection, while optimistic, underscores the inherent uncertainties in investing and the importance of a diversified portfolio in navigating potential market volatility.

Asset classes Info

  • Stocks
    74%
  • Bonds
    25%
  • Cash
    1%

The allocation across asset classes, with a dominant share in stocks, supports the pursuit of growth, while bonds provide a cushion against market downturns. This mix aligns with the portfolio's balanced risk classification, aiming to achieve a moderate growth trajectory with controlled volatility.

Sectors Info

  • Technology
    19%
  • Financials
    13%
  • Consumer Discretionary
    8%
  • Industrials
    8%
  • Health Care
    7%
  • Telecommunications
    6%
  • Consumer Staples
    4%
  • Basic Materials
    3%
  • Energy
    3%
  • Real Estate
    2%
  • Utilities
    2%

The sectoral allocation, led by technology and financial services, positions the portfolio to benefit from growth in these dynamic sectors. However, the concentration in these areas also introduces sector-specific risks, which are somewhat mitigated by the portfolio's broad diversification across other sectors and asset classes.

Regions Info

  • North America
    46%
  • Asia Emerging
    9%
  • Europe Developed
    8%
  • Asia Developed
    4%
  • Japan
    3%
  • Africa/Middle East
    2%
  • Latin America
    1%
  • Australasia
    1%

Geographic diversification is well-represented, with significant exposure to North America and meaningful allocations to emerging and developed markets in Asia and Europe. This global reach enhances the portfolio's growth potential and spreads risk across different economic and geopolitical landscapes.

Market capitalization Info

  • Mega-cap
    32%
  • Large-cap
    23%
  • Mid-cap
    14%
  • Small-cap
    4%
  • Micro-cap
    1%

The market capitalization breakdown, favoring mega and large-cap stocks, suggests a preference for established, more stable companies. While this may reduce volatility, the lower allocation to small and micro-caps may also limit exposure to high-growth opportunities in these segments.

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-optimized for a balanced risk-return profile, as suggested by its performance and diversification metrics. However, continuous monitoring and periodic adjustments are essential to maintain alignment with the Efficient Frontier, ensuring the portfolio remains positioned for optimal risk-adjusted returns.

Dividends Info

  • Schwab U.S. TIPS ETF 2.70%
  • Vanguard Intermediate-Term Treasury Index Fund ETF Shares 3.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.80%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 2.22%

The dividend yields across the ETFs contribute to the portfolio's total income, enhancing returns in addition to potential capital appreciation. This income component is particularly valuable in a balanced portfolio, offering a steady return stream in various market conditions.

Ongoing product costs Info

  • Schwab U.S. TIPS ETF 0.03%
  • Vanguard Intermediate-Term Treasury Index Fund ETF Shares 0.04%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

The overall low cost, with a Total Expense Ratio (TER) averaging 0.04%, is commendable. Lower costs directly translate to higher net returns for investors, making this portfolio more efficient in the long term. This cost-effectiveness is a significant advantage in achieving investment goals.

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