A balanced and highly diversified portfolio with a focus on stocks and global exposure

Report created on Jun 20, 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 structured around a core of U.S. and international equities, with a 60% allocation to the iShares Core S&P Total U.S. Stock Market ETF and a 30% allocation to the iShares Core MSCI Total International Stock ETF, complemented by a 10% allocation to U.S. bonds via the iShares Core U.S. Aggregate Bond ETF. This composition reflects a balanced approach, leaning towards growth with a significant equity exposure while maintaining a risk-mitigating component through bonds. The high diversification score indicates a broad spread across sectors and geographies, which is crucial for reducing volatility and enhancing long-term returns.

Growth Info

Historically, the portfolio has delivered a Compound Annual Growth Rate (CAGR) of 10.29%, with a maximum drawdown of -32.08%. The drawdown indicates the largest peak-to-trough decline during the portfolio's history, which is an important measure of risk. However, the days contributing to 90% of returns being limited to 25 suggests that timing the market would be challenging, emphasizing the importance of a long-term investment strategy. Comparing these metrics to benchmarks can provide context, but remember, past performance is not indicative of future results.

Projection Info

Monte Carlo simulations, which run numerous potential future scenarios to project outcomes, suggest a median annualized return of 7.79% for this portfolio. With 945 out of 1,000 simulations showing positive returns, this indicates a relatively high probability of achieving positive growth over time. However, it's important to note that these projections are based on historical data and assumptions, and actual future performance can vary due to unforeseen market changes.

Asset classes Info

  • Stocks
    90%
  • Bonds
    10%

With 90% of the portfolio allocated to stocks and 10% to bonds, the asset class distribution aligns with a growth-oriented strategy that also seeks to mitigate risk through fixed income. This mix is suitable for investors with a balanced risk profile, aiming for significant growth potential while having some protection against market volatility. Comparing this allocation to standard benchmarks for balanced portfolios can help in assessing its appropriateness for your risk tolerance and investment horizon.

Sectors Info

  • Technology
    23%
  • Financials
    15%
  • Industrials
    10%
  • Consumer Discretionary
    10%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Basic Materials
    3%
  • Energy
    3%
  • Real Estate
    2%
  • Utilities
    2%

The sectoral allocation, with a notable emphasis on technology and financial services, positions the portfolio to benefit from growth in these dynamic sectors. However, it also exposes the portfolio to sector-specific risks, such as regulatory changes or economic shifts impacting these industries. Diversifying across sectors, as this portfolio does, can help mitigate such risks, though investors should be aware of the potential for higher volatility associated with heavy tech and financial services investments.

Regions Info

  • North America
    62%
  • Europe Developed
    12%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic diversification is a strong suit of this portfolio, with significant exposures to North America and developed European markets, complemented by investments in emerging markets in Asia and Latin America. This global exposure enhances the portfolio's growth potential by tapping into various economic cycles and market dynamics. However, it's important to monitor geopolitical and currency risks that can affect international investments.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    28%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    1%

The market capitalization breakdown, with a focus on mega and big cap stocks, suggests a conservative approach within the equity allocation, favoring stability and lower volatility associated with larger, well-established companies. However, the presence of medium, small, and micro caps, albeit in smaller proportions, introduces growth potential by including companies with higher growth prospects, albeit with potentially higher 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.

Considering the Efficient Frontier, which aims to maximize returns for a given level of risk, this portfolio appears well-positioned. However, continuous assessment is necessary to ensure it remains optimized as market conditions evolve. Adjusting allocations between asset classes or within sectors and geographies can help maintain an optimal risk-return balance, tailored to the investor's changing risk tolerance and investment goals.

Dividends Info

  • iShares Core U.S. Aggregate Bond ETF 3.80%
  • iShares Core S&P Total U.S. Stock Market ETF 1.00%
  • iShares Core MSCI Total International Stock ETF 3.10%
  • Weighted yield (per year) 1.91%

The dividend yields from the ETFs contribute to the portfolio's total return, offering a blend of growth and income. With the bond ETF providing a higher yield, it serves as a steady income source, complementing the growth potential from the stock ETFs. This approach can be particularly appealing for investors seeking a mix of income and capital appreciation.

Ongoing product costs Info

  • iShares Core U.S. Aggregate Bond ETF 0.03%
  • iShares Core S&P Total U.S. Stock Market ETF 0.03%
  • iShares Core MSCI Total International Stock ETF 0.07%
  • Weighted costs total (per year) 0.04%

The portfolio benefits from low total expense ratios (TERs) across the ETFs, averaging 0.04%. Lower costs directly translate to higher net returns over time, making this an efficient portfolio from a cost perspective. Investors should always consider the impact of fees on their investment outcomes, as even small differences in costs can have a significant impact over the long term.

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