Balanced and highly diversified portfolio emphasizing global equities with a strong bond foundation

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 is well-structured, combining a significant allocation to equities through the Vanguard Total Stock Market Index Fund ETF Shares (45%) and the Vanguard Total International Stock Index Fund ETF Shares (20%), with a solid foundation in fixed income via the Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares (20%). The inclusion of the Vanguard FTSE Emerging Markets Index Fund ETF Shares (15%) enhances global exposure, particularly to high-growth emerging markets. This composition suggests a balanced approach, aiming to capture growth while mitigating risk through diversification across asset classes and geographies.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 9.57%, with a maximum drawdown of -29.97%. These figures indicate a favorable balance between risk and return, with the portfolio demonstrating resilience during market downturns and an ability to capitalize on growth trends. The days contributing to 90% of returns highlight the impact of significant market movements, underscoring the importance of staying invested during volatile periods for long-term growth.

Projection Info

Monte Carlo simulations, which use historical data to project potential future outcomes, show a wide range of possibilities for this portfolio. With 949 out of 1,000 simulations yielding positive returns and a median projected increase of 166.5%, the analysis supports the portfolio's potential for growth. However, it's crucial to remember that these projections are not guarantees but tools to visualize potential outcomes, emphasizing the importance of maintaining a balanced and diversified approach to mitigate risk.

Asset classes Info

  • Stocks
    79%
  • Bonds
    20%
  • Cash
    1%

The portfolio's asset allocation—79% in stocks and 20% in bonds—aligns with a balanced investment strategy that seeks to harness the growth potential of equities while using bonds to reduce volatility and provide income. This mix is appropriate for investors with a moderate risk tolerance and a long-term investment horizon, offering a blend of growth and income while mitigating risks associated with market fluctuations.

Sectors Info

  • Technology
    20%
  • Financials
    14%
  • Consumer Discretionary
    9%
  • Industrials
    9%
  • Health Care
    7%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Basic Materials
    3%
  • Energy
    3%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation shows a significant emphasis on technology (20%), financial services (14%), and consumer cyclicals (9%), which are sectors known for their growth potential. However, this concentration also introduces sector-specific risks, such as higher volatility in technology stocks. Diversification across other sectors like industrials, healthcare, and consumer defensive adds stability, balancing the portfolio's risk and return profile.

Regions Info

  • North America
    46%
  • Asia Emerging
    12%
  • Europe Developed
    8%
  • Asia Developed
    5%
  • Japan
    3%
  • Africa/Middle East
    2%
  • Latin America
    2%
  • Australasia
    1%

Geographic diversification is a strength of this portfolio, with significant exposure to North America (46%) and a strategic allocation to emerging markets (15%) and other developed regions. This global spread not only captures growth across different economies but also reduces the impact of regional downturns, contributing to a more stable performance over time.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    24%
  • Mid-cap
    14%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown—34% mega, 24% big, 14% medium, 4% small, and 1% micro—indicates a bias towards larger, more established companies. This skew towards larger caps can provide stability and lower volatility, but incorporating a greater mix of small and micro-cap stocks could enhance growth potential, albeit with higher risk.

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 to offer a favorable risk-return balance. However, there's always room for optimization, particularly by adjusting allocations slightly to enhance diversification or reduce volatility further. Regular reviews and adjustments in response to changing market conditions and investment goals can help maintain this optimal balance.

Dividends Info

  • Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares 4.10%
  • 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) 2.36%

The portfolio's average dividend yield of 2.36% contributes to its total return, providing a steady income stream in addition to potential capital gains. This yield, derived from both the equity and bond components, underscores the portfolio's balanced approach, offering growth potential with the added benefit of income generation.

Ongoing product costs Info

  • Vanguard Intermediate-Term Corporate Bond 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%

With a total expense ratio (TER) of 0.04%, the portfolio is cost-efficient, which is crucial for maximizing long-term returns. Lower costs mean more of the investment's return is retained by the investor, a significant advantage over time. This efficiency is especially beneficial in a balanced portfolio where the goal is steady growth with controlled risk.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey