A two-trick pony masquerading as a diversified portfolio
Report created on Jun 15, 2025Risk profile
4/7
Diversification profile
4/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 70.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 30.00%
At first glance, this portfolio looks like it's taking diversification seriously. But let's be real: holding just two ETFs and calling it a day is like saying you're a foodie because you eat both McDonald's and Burger King. Sure, you're getting a taste of everything from tech to tacos (or telecoms to consumer goods, in this case), but it's hardly a gourmet experience. It's the investing equivalent of a safety blanket - comfortable but not exactly adventurous.
Growth
With a historic CAGR of 11.46%, this portfolio has been cruising along nicely, but let's not get carried away with back-patting. A max drawdown of -34.59% is a stark reminder that when the market sneezes, this portfolio catches a cold. It's like relying on a two-legged stool; it might stand up fine in good conditions, but it won't take much to topple it over. Diversification beyond two funds might just save you from taking an unexpected seat.
Projection
Monte Carlo simulations are great for stress-testing portfolios against a variety of market conditions, kind of like a video game where you can see how different strategies play out without risking real money. But here's the kicker: with projections ranging from an 11.1% to a whopping 379.3% percentile performance, it's clear this portfolio could either be a modest win or hit the jackpot. However, with 966 out of 1,000 simulations showing positive returns, it seems like this portfolio is more likely to bring home the bacon than leave you starving.
Asset classes
- Stocks 99%
- Cash 1%
In a world of investment opportunities, this portfolio has boldly chosen to... almost entirely ignore them. With 99% in stocks and the rest in what might as well be under the mattress, it's like deciding the only tool you need in life is a hammer. Sure, you can use it for everything, but don't be surprised when everything starts to look like a nail. A sprinkle of bonds or real estate wouldn't hurt for some balance.
Sectors
- Technology 24%
- Financials 17%
- Industrials 11%
- Health Care 11%
- Consumer Discretionary 10%
- Telecommunications 8%
- Consumer Staples 6%
- Energy 4%
- Basic Materials 3%
- Real Estate 3%
- Utilities 3%
The sector allocation is like a party that everyone's invited to, but tech and financial services are hogging the buffet. With over 40% of the portfolio feasting on these two sectors alone, it's a bit like betting on red and black at the roulette table and hoping for the best. Diversification within sectors is like eating your veggies; it might not be exciting, but it's good for your financial health in the long run.
Regions
- North America 72%
- Europe Developed 12%
- Asia Emerging 5%
- Japan 5%
- Asia Developed 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
The geographic allocation screams "home bias" louder than a tourist wearing socks with sandals. With 72% allocated to North America, it's clear where the comfort zone lies. But just like travel broadens the mind, spreading investments across a wider range of geographies could help safeguard your portfolio from local economic sneezes. There's a whole world out there beyond the red, white, and blue.
Market capitalization
- Mega-cap 42%
- Large-cap 30%
- Mid-cap 19%
- Small-cap 6%
- Micro-cap 2%
With a heavy tilt towards mega and big cap stocks, this portfolio is like a kid choosing to ride only the biggest roller coasters at the theme park - it's thrilling until you realize you're missing out on all the other fun rides. Sure, big caps offer stability and are less likely to make your stomach churn, but sprinkling in some medium, small, or even micro caps could add some excitement and potential for growth.
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.
When it comes to risk vs. return optimization, this portfolio is like someone who thinks wearing both a belt and suspenders is a fashion statement. Sure, you're covered, but at what cost? With a risk score of 4 out of 7, it's playing it safe, yet the heavy stock allocation and narrow diversification suggest a disconnect between risk management and investment strategy. A little more balance could make for a smoother ride.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.30%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.75%
With dividend yields sitting at a comfortable 1.75% on average, it's like the portfolio is quietly humming along, paying out enough to buy yourself a nice dinner once in a while but not enough to fund a lavish lifestyle. It's a steady income stream, sure, but diversifying into assets with higher yield potential could turn that dinner into a feast.
Ongoing product costs
- 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) 0.04%
The total expense ratio (TER) of 0.04% is impressively low, like finding a luxury car with the fuel efficiency of a scooter. In the world of investing, where fees can eat into your returns like termites in a wooden house, this portfolio is built on a steel frame. It's a rare positive note in a symphony that's otherwise a bit off-key.
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