Balanced portfolio with strong growth focus and solid global diversification

Report created on Apr 1, 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 predominantly composed of equity ETFs, with 65% in the Vanguard Growth Index Fund ETF, 20% in the Vanguard Total International Stock Index Fund ETF, and 15% in the Vanguard Total Bond Market Index Fund ETF. This composition aligns with a balanced investment strategy, providing a mix of growth potential from equities and stability from bonds. Compared to typical benchmarks, this portfolio leans more towards growth equities, which may offer higher returns but also increased volatility. For a balanced approach, consider maintaining this mix to balance risk and reward effectively.

Growth Info

Historically, the portfolio has delivered a CAGR of 11.54%, indicating strong growth over time. This performance is commendable, especially when considering the max drawdown of -33.31%, which reflects the worst peak-to-trough decline. When compared to benchmarks, this CAGR suggests the portfolio has navigated market fluctuations well, offering robust returns. However, it's important to note that past performance does not guarantee future results. To sustain this growth, continue monitoring market conditions and adjusting allocations as needed.

Projection Info

The forward projection, based on a Monte Carlo simulation with 1,000 iterations, suggests an annualized return of 8.33%. This simulation uses historical data to predict potential future outcomes, with a 5th percentile return of -9.0% and a 50th percentile return of 160.9%. While such projections offer valuable insights, they rely on past data and cannot account for unforeseen market shifts. This projected return aligns with your balanced risk profile, but it's crucial to remain adaptable to changing market conditions.

Asset classes Info

  • Stocks
    84%
  • Bonds
    15%
  • Cash
    1%

The portfolio's asset allocation consists of 84% stocks and 15% bonds, with a minimal cash position. This allocation is typical for a balanced portfolio, offering growth potential from equities and stability from bonds. Compared to benchmarks, the equity allocation is slightly higher, which may enhance returns but also increase risk. To optimize diversification, consider periodically reassessing the bond allocation to ensure it aligns with your risk tolerance and investment goals.

Sectors Info

  • Technology
    35%
  • Consumer Discretionary
    12%
  • Telecommunications
    10%
  • Financials
    9%
  • Health Care
    6%
  • Industrials
    5%
  • Consumer Staples
    3%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Energy
    1%
  • Utilities
    1%

Sector-wise, the portfolio has a notable concentration in technology at 35%, followed by consumer cyclicals and communication services. Compared to common benchmarks, this tech-heavy allocation may lead to higher volatility, especially during periods of interest rate hikes. While the sectoral diversity is commendable, consider monitoring sector trends and making adjustments to avoid overexposure to any single sector, particularly in volatile market conditions.

Regions Info

  • North America
    67%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is heavily weighted towards North America at 67%, with smaller allocations in Europe and Asia. This geographic distribution provides a solid foundation in developed markets but may limit exposure to emerging markets, which can offer higher growth potential. Compared to benchmarks, this allocation is typical for U.S.-based investors, but consider gradually increasing exposure to emerging markets to enhance diversification and capture global growth opportunities.

Market capitalization Info

  • Mega-cap
    52%
  • Large-cap
    21%
  • Mid-cap
    11%
  • Small-cap
    1%

The portfolio is predominantly invested in mega-cap stocks at 52%, with additional exposure to big and medium-cap stocks. This market capitalization distribution aligns with a strategy focused on stability and established growth. Compared to benchmarks, this concentration in larger companies offers lower volatility but may limit upside potential from smaller, high-growth companies. To balance risk and reward, consider a modest increase in small-cap exposure, which may enhance long-term growth prospects.

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 portfolio can be optimized using the Efficient Frontier, which seeks the best possible risk-return ratio. This involves adjusting the current asset allocations to achieve the most efficient mix, maximizing returns for a given level of risk. While this optimization focuses on the existing assets, consider periodic reviews to ensure the portfolio remains aligned with your risk tolerance and investment goals, adapting to market changes as needed.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.60%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.36%

The portfolio's dividend yield is 1.36%, with the highest contribution from the Vanguard Total Bond Market Index Fund ETF at 3.60%. Dividends provide a steady income stream, enhancing total returns, especially in volatile markets. While the yield is moderate, it supports the portfolio's growth focus. To increase income, consider gradually increasing exposure to dividend-focused equities or funds, balancing the need for income with growth objectives.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

The portfolio's total expense ratio (TER) is impressively low at 0.04%, reflecting the cost-efficiency of Vanguard ETFs. Minimizing costs is crucial for enhancing long-term returns, as lower fees mean more of your investment earnings are retained. Compared to industry averages, this TER is highly competitive. Continue prioritizing low-cost investments to maximize net returns, and periodically review expenses to ensure they remain aligned with your investment strategy.

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