A balanced and highly diversified portfolio with a strategic focus on growth and income

Report created on Sep 7, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is thoughtfully composed, with 80% allocated to stocks and 20% to bonds, indicating a balanced approach towards growth and income. The stock allocation is spread across major ETFs, including the Vanguard S&P 500 ETF, iShares Core MSCI Total International Stock ETF, and Invesco NASDAQ 100 ETF, which provides broad exposure to U.S. and international equities. The bond portion includes the Vanguard Total Bond Market Index Fund ETF Shares and Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares, offering both stability and protection against inflation. This composition aligns well with a balanced risk profile, aiming for long-term growth while mitigating short-term market volatility.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 11.62%, with a maximum drawdown of -23.62%. These figures highlight the portfolio's ability to generate strong returns over time, despite periods of significant market downturns. The days contributing to 90% of the returns emphasize the impact of short-term market movements on overall performance. Comparing these metrics to benchmarks can provide further insight, but this performance suggests a well-managed risk-return balance, suitable for investors with a medium to long-term horizon.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, show a wide range of potential portfolio values, with the median outcome suggesting substantial growth. However, it's crucial to understand that these projections are based on past performance, which is not a reliable indicator of future results. The simulations indicate a high likelihood of positive returns, aligning with the portfolio's balanced risk classification. This forward-looking analysis is helpful for setting realistic expectations and preparing for various market scenarios.

Asset classes Info

  • Stocks
    80%
  • Bonds
    19%
  • Cash
    1%

The asset class distribution of 80% stocks and 20% bonds is a classic balanced portfolio setup, designed to capture growth through equities while using bonds to reduce volatility. The inclusion of cash, albeit a small percentage, offers liquidity for rebalancing or taking advantage of new investment opportunities. This allocation is well-suited for investors with a moderate risk tolerance, looking for growth and income. The portfolio's diversification across asset classes helps in smoothing out the returns over time, making it a solid choice for long-term investors.

Sectors Info

  • Technology
    25%
  • Financials
    10%
  • Consumer Discretionary
    9%
  • Telecommunications
    8%
  • Industrials
    7%
  • Health Care
    7%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    1%

Sector allocation shows a well-rounded exposure with a significant tilt towards technology, which is reflective of the current market environment where tech companies have a large weight in major indices. The portfolio also maintains a balanced exposure to other sectors like financial services, consumer cyclicals, and healthcare, which can provide stability and potential growth. However, the heavy weighting in technology could increase volatility, suggesting a need for periodic review to ensure alignment with the investor's risk tolerance and market outlook.

Regions Info

  • North America
    61%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is predominantly invested in North America with meaningful exposure to developed Europe and emerging markets in Asia. This distribution supports diversification across different economic regions, reducing the risk associated with any single market. However, the relatively low exposure to emerging markets and certain developed regions might limit potential growth opportunities. Expanding geographic diversity could enhance returns and provide better protection against regional downturns.

Market capitalization Info

  • Mega-cap
    35%
  • Large-cap
    29%
  • Mid-cap
    14%
  • Small-cap
    2%

The market capitalization breakdown, with a focus on mega and large-cap stocks, underscores the portfolio's conservative approach towards growth and stability. While these companies typically offer more predictable returns and dividends, the relatively smaller allocation to mid, small, and micro-cap stocks could mean missing out on higher growth opportunities. Investors might consider increasing exposure to smaller caps for potential higher returns, albeit with increased volatility.

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 Efficient Frontier analysis would suggest that the portfolio is well-optimized for the current risk-return profile. However, continuous review and adjustment are key to maintaining this optimization, especially as market conditions change. The portfolio's current allocation appears to balance growth and income generation with risk management effectively. Investors should periodically review their allocations to ensure they remain aligned with their financial goals and risk tolerance.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • iShares Core MSCI Total International Stock ETF 2.90%
  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 2.06%

The portfolio's dividend yield stands at 2.06%, contributing to its income generation capabilities. This yield, combined with the growth potential from the equity components, offers a balanced approach to wealth accumulation. The various ETFs have differing yields, indicating a thoughtful selection aimed at balancing income with growth. Investors should consider the role of dividends in their overall investment strategy, especially in terms of reinvestment or income needs.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • iShares Core MSCI Total International Stock ETF 0.07%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.07%

With a total expense ratio (TER) of 0.07%, the portfolio is efficiently managed, minimizing the drag on returns due to costs. This low cost is commendable, especially given the diversified exposure across asset classes, sectors, and geographies. Keeping costs low is crucial for enhancing long-term investment returns, and this portfolio exemplifies how strategic fund selection can achieve that goal.

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