Balanced portfolio with strong equity focus and notable high-yield bond presence

Report created on Aug 18, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is primarily composed of equities (85%) and high-yield corporate bonds (15%), with a significant tilt towards the Vanguard Total Stock Market Index Fund ETF Shares. This allocation suggests a strategy aiming for growth through broad market exposure while using bonds to provide income and reduce volatility. The heavy reliance on a single equity ETF for market exposure, however, may limit sectoral and geographical diversification despite the international equity component.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 16.05%, with a maximum drawdown of -24.38%. These figures indicate a strong performance, particularly in bullish market conditions, but also highlight potential vulnerability during market downturns. The days contributing to 90% of returns suggest significant gains are concentrated in short periods, emphasizing the importance of staying invested through market cycles.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, this portfolio shows a wide range of outcomes. With 998 out of 1,000 simulations yielding positive returns, the median projected growth is substantial. However, the reliance on past performance must be tempered with the understanding that it does not guarantee future results, especially in a changing economic landscape.

Asset classes Info

  • Stocks
    85%
  • Bonds
    15%

The asset class allocation of 85% stocks and 15% bonds aligns with a balanced yet growth-oriented strategy. This mix aims to capture the growth potential of equities while using bonds to cushion against market volatility. However, the absence of alternative investments and cash holdings could limit flexibility and diversification.

Sectors Info

  • Technology
    24%
  • Financials
    13%
  • Industrials
    9%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

Sectoral allocation shows a heavy emphasis on technology and financial services, which may increase volatility and risk, especially during sector-specific downturns. While this allocation has likely contributed to the portfolio’s strong historical performance, diversifying across more sectors could reduce risk without significantly compromising potential returns.

Regions Info

  • North America
    72%
  • Europe Developed
    8%
  • Japan
    3%
  • Australasia
    1%
  • Asia Developed
    1%

Geographic allocation is heavily weighted towards North America (72%), with limited exposure to developed and emerging markets outside of this region. This concentration enhances exposure to the economic and political risks specific to North America and may miss out on growth opportunities in other regions.

Market capitalization Info

  • Mega-cap
    36%
  • Large-cap
    27%
  • Mid-cap
    15%
  • Small-cap
    5%
  • Micro-cap
    2%

The market capitalization breakdown, favoring mega and big cap stocks (63% combined), suggests a preference for established companies. While this can offer stability and lower volatility, incorporating more medium, small, and micro-cap stocks could enhance growth potential and diversification.

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 may not be fully optimized for the best possible risk-return ratio based solely on its current assets. Adjusting the allocation could potentially offer a better balance, especially by increasing diversification across asset classes, sectors, and geographies without significantly altering the risk profile.

Dividends Info

  • BNY Mellon International Equity ETF 2.70%
  • iShares Broad USD High Yield Corporate Bond ETF 6.80%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 2.26%

The dividend yields, especially from the high-yield corporate bond ETF, contribute to the portfolio's income stream, complementing growth from equity investments. This balanced approach supports a strategy aiming for both income and capital appreciation, although it's important to monitor the sustainability of high yields in changing market conditions.

Ongoing product costs Info

  • BNY Mellon International Equity ETF 0.04%
  • iShares Broad USD High Yield Corporate Bond ETF 0.08%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.04%

With a total expense ratio (TER) of 0.04%, the portfolio benefits from low costs, which can significantly enhance long-term returns. Keeping costs low is crucial in maximizing investment efficiency, and this portfolio exemplifies effective cost management across its holdings.

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