A comprehensive look at a single-ETF portfolio focusing on developed markets
Report created on Dec 8, 2025Risk profile
4/7
Diversification profile
4/5
Positions
-
VE Vanguard FTSE Developed Markets Index Fund ETF Shares
VEA - US9219438580 100.00%
This portfolio is singularly invested in the Vanguard FTSE Developed Markets Index Fund ETF Shares, making it highly focused yet broadly diversified across developed markets. The ETF's allocation spans across multiple sectors, with a significant emphasis on financial services, industrials, and technology. This structure provides exposure to a wide array of companies and industries within developed regions, aligning with a balanced risk profile that seeks growth while maintaining a moderate level of risk.
Growth
Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 9.89%, with a maximum drawdown of -35.74%. These figures suggest a resilient performance through various market cycles, with the potential for significant volatility. The days contributing most to returns indicate that a small number of highly positive days drive a large portion of overall gains, highlighting the importance of staying invested over the long term.
Projection
Monte Carlo simulations offer a forward-looking perspective based on historical data, projecting a wide range of potential outcomes. For this portfolio, simulations predict an annualized return of 10.28%, with a majority of scenarios (976 out of 1,000) showing positive returns. This suggests a strong likelihood of future growth, though it's important to remember that these projections cannot guarantee future performance.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's asset allocation is nearly entirely in stocks (99%), with a small cash position (1%). This high equity exposure is typical for portfolios aiming for growth but comes with higher volatility. The absence of bonds or alternative investments limits opportunities for risk mitigation through diversification across different asset classes.
Sectors
- Financials 23%
- Industrials 19%
- Technology 12%
- Health Care 9%
- Consumer Discretionary 9%
- Basic Materials 7%
- Consumer Staples 6%
- Energy 4%
- Telecommunications 4%
- Utilities 3%
- Real Estate 3%
Sector allocation is well-diversified, covering financial services, industrials, technology, and more. This broad sector coverage helps mitigate sector-specific risks. However, the concentration in financial services and industrials suggests a reliance on the economic cycle, potentially increasing volatility during economic downturns.
Regions
- Europe Developed 50%
- Japan 21%
- North America 12%
- Asia Developed 9%
- Australasia 6%
- Africa/Middle East 1%
Geographic allocation is heavily weighted towards Europe (50%) and Japan (21%), with smaller allocations to North America and other developed regions. This distribution offers a broad exposure to developed markets, potentially reducing country-specific risks. However, the limited exposure to the U.S. and the absence of emerging markets could mean missing out on higher growth opportunities elsewhere.
Market capitalization
- Mega-cap 46%
- Large-cap 31%
- Mid-cap 17%
- Small-cap 4%
The market capitalization breakdown shows a bias towards mega (46%) and big (31%) cap stocks, which are typically less volatile than smaller companies. This aligns with the portfolio's balanced risk profile. However, the limited exposure to small and micro-cap stocks could mean missing out on higher growth potential from these segments.
Dividends
- Vanguard FTSE Developed Markets Index Fund ETF Shares 2.70%
- Weighted yield (per year) 2.70%
The dividend yield of 2.70% contributes to the portfolio's total return, providing a steady income stream in addition to potential capital appreciation. For investors seeking growth with a moderate income component, this yield is a favorable aspect, balancing the need for growth with the desire for periodic income.
Ongoing product costs
- Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.05%
The portfolio's total expense ratio (TER) of 0.05% is impressively low, maximizing the potential for net returns over the long term. Low costs are crucial for long-term investment success, as they compound positively by leaving more money invested to grow over time.
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