A balanced portfolio with a strong focus on US equities and global diversification

Report created on Jul 30, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards the Vanguard S&P 500 ETF, making up 80% of the allocation, with the remaining 20% in the Vanguard Total International Stock Index Fund ETF Shares. This structure indicates a strong bias towards US equities, given the S&P 500's focus on large-cap US companies. The international component adds global exposure, albeit to a lesser extent. This setup reflects a balanced approach, aiming to capture growth from the US market while slightly hedging with international diversification.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.22%, with a maximum drawdown of -33.89%. This performance suggests resilience and the potential for substantial growth, despite significant market downturns. The days contributing to 90% of returns being limited to 29 indicates that a few key periods have driven the portfolio's growth, emphasizing the importance of staying invested during market highs and lows.

Projection Info

Utilizing the Monte Carlo simulation, which forecasts potential investment outcomes by analyzing historical data, the portfolio shows a wide range of future scenarios. With 984 out of 1,000 simulations predicting positive returns and a median projected growth of 291.9%, the portfolio appears well-positioned for future growth. However, it's crucial to remember that these projections are speculative and not guaranteed.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is predominantly in stocks (99%), with a minimal cash component (1%). This high equity exposure aligns with the portfolio's balanced risk profile but leans towards a higher risk and return potential. Investors should consider their comfort with short-term market fluctuations given this equity concentration.

Sectors Info

  • Technology
    29%
  • Financials
    16%
  • Consumer Discretionary
    11%
  • Industrials
    9%
  • Health Care
    9%
  • Telecommunications
    9%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

Sector allocation is diverse, with technology (29%) and financial services (16%) leading, followed by consumer cyclicals and healthcare. This sector spread is typical for portfolios heavily invested in the S&P 500, reflecting the current market capitalization trends. However, the significant weight in technology could introduce volatility, especially in market corrections or shifts in industry prospects.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is heavily skewed towards North America (81%), with modest exposure to developed Europe (8%) and emerging markets in Asia (3%). This distribution underscores a strong reliance on the US economy's performance, potentially missing out on growth opportunities in emerging markets and other developed regions.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    34%
  • Mid-cap
    18%
  • Small-cap
    1%

The portfolio's market capitalization breakdown shows a preference for mega (46%) and big (34%) cap stocks, with medium, small, and micro caps representing a smaller portion. This bias towards larger companies may contribute to stability but can limit exposure to high-growth potential found in smaller companies.

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, the current allocation between the S&P 500 and international stocks appears to strike a balance between risk and return. However, there might be room for optimization by slightly adjusting the allocation to improve diversification without significantly impacting the portfolio's risk-return profile. It's important to note that optimization is based on historical data, which may not predict future performance accurately.

Dividends Info

  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.52%

The portfolio offers a combined dividend yield of 1.52%, with the international component boosting the overall yield due to its higher dividend rate (2.80%). This yield contributes to the portfolio's total return, offering a steady income stream in addition to potential capital gains.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.03%

With total portfolio costs averaging 0.03%, this portfolio is highly cost-efficient, enhancing long-term return potential. Low costs are crucial for maximizing investment growth, especially in a low-yield environment, making this portfolio well-structured from a cost perspective.

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