A balanced and highly diversified portfolio with a strategic mix across asset classes and regions

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 exhibits a well-considered balance between equities (79%) and bonds (20%), with a minimal cash position (1%). The equity portion is thoughtfully divided between U.S. and international markets, including emerging markets, ensuring a global exposure that enhances diversification. The bond allocation is focused on investment-grade corporate bonds, providing a stable income stream and reducing overall portfolio volatility. This composition aligns well with a balanced risk profile, aiming to achieve growth while mitigating risk through diversification across asset classes and geographies.

Growth Info

With a historical CAGR of 9.53%, the portfolio has demonstrated solid growth potential. The maximum drawdown of -30.14% indicates a relatively moderate risk level, consistent with its balanced classification. The performance is further highlighted by the fact that a significant portion of returns was generated in a limited number of days, suggesting that timing the market is less crucial than maintaining a consistent investment strategy. This historical performance, while informative, should be viewed as a guide rather than a guarantee of future returns.

Projection Info

Using Monte Carlo simulations, the portfolio's forward projection shows a wide range of potential outcomes, with a median increase of 165.7%. This method, while based on historical data, provides a probabilistic view of future performance, emphasizing the uncertainty inherent in investing. It's important to note that these projections are hypothetical and should not be the sole basis for investment decisions.

Asset classes Info

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

The allocation to stocks and bonds is well-suited to a balanced investment strategy, aiming to capture growth through equities while using bonds to provide income and reduce volatility. The minimal cash holding suggests an active investment approach, maximizing the potential for growth. This asset class distribution supports a medium to long-term investment horizon, where the investor is prepared to weather short-term market fluctuations in pursuit of higher returns.

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%

The sector allocation reveals a strong emphasis on technology and financial services, reflecting a growth-oriented approach within the equity portion of the portfolio. However, the presence of consumer cyclicals, industrials, and healthcare sectors ensures a degree of diversification that can help buffer against sector-specific risks. This sectoral spread is indicative of a strategy that seeks to balance growth potential with risk mitigation.

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 standout feature of this portfolio, with significant allocations to North America, Asia Emerging, and Europe Developed markets. This broad exposure reduces the risk of regional downturns significantly impacting the portfolio. However, the emphasis on North America suggests a home bias, which, while common, should be periodically reviewed to ensure it aligns with the investor's diversification goals and risk appetite.

Market capitalization Info

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

The market capitalization breakdown indicates a diversified approach, with a strong tilt towards mega and big-cap stocks, which tend to be more stable and less volatile than their smaller counterparts. However, the inclusion of medium, small, and micro-cap stocks introduces growth potential, albeit with increased risk. This blend supports the portfolio's balanced risk profile, aiming for growth while managing 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 current portfolio is well-positioned on the Efficient Frontier, indicating an optimal balance of risk and return based on historical data. This balance suggests that, for the given risk level, the portfolio is expected to provide the highest possible return. However, it's important to remember that market conditions evolve, and what is efficient today may not be tomorrow. Regular reviews and adjustments are essential to maintain this optimal positioning.

Dividends Info

  • iShares iBoxx $ Investment Grade Corporate Bond ETF 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 dividend yield of 2.36% contributes to the portfolio's income stream, complementing capital gains with passive income. This yield, derived from both the equity and bond components, enhances the portfolio's attractiveness for investors seeking regular income in addition to growth. It's a strategic element that adds to the portfolio's balanced approach, providing cash flow that can be reinvested or used as income.

Ongoing product costs Info

  • iShares iBoxx $ Investment Grade Corporate Bond ETF 0.14%
  • 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) 0.06%

With a total expense ratio (TER) of just 0.06%, the portfolio benefits from low costs, maximizing the potential for net returns. This efficiency is particularly noteworthy given the diversified and global nature of the investments. Keeping costs low is a critical component of long-term investment success, as even small differences in fees can significantly impact compound growth over time.

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