A balanced and highly diversified portfolio with a strong foundation in ETFs and bonds

Report created on Nov 4, 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 showcases a well-considered mix of 76% equities (47% in U.S. stocks and 29% in international stocks) and 24% in U.S. bonds, creating a balanced approach between growth potential and risk mitigation. The inclusion of both domestic and international equities enhances diversification, potentially reducing volatility and improving returns over time. The bond allocation serves as a buffer against market downturns, providing steady income and further stabilizing the portfolio.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 10.18%, with a maximum drawdown of -28.10%. These figures suggest a resilient performance through various market conditions, balancing growth and risk effectively. The days contributing to 90% of returns indicate significant gains can be concentrated in relatively few trading days, emphasizing the importance of staying invested over the long term to capture potential market upswings.

Projection Info

Utilizing Monte Carlo simulations, which forecast potential future performance based on historical data, this portfolio shows a median projected growth of 198.6% over the simulation period. While these projections provide valuable insights, it's crucial to remember that they are based on past performance, which is not a reliable indicator of future results. Diversification and regular portfolio reviews remain key to adapting to changing market conditions.

Asset classes Info

  • Stocks
    75%
  • Bonds
    24%
  • Cash
    1%

The allocation to stocks (75%) versus bonds (24%) aligns with a balanced risk profile, aiming for growth while managing risk through fixed income securities. This blend supports long-term wealth accumulation with reduced volatility compared to a stocks-only portfolio. The minimal cash holding (1%) suggests an efficient use of capital, though maintaining a small liquidity reserve can be beneficial for taking advantage of new investment opportunities.

Sectors Info

  • Technology
    20%
  • Financials
    13%
  • Industrials
    9%
  • Consumer Discretionary
    8%
  • Health Care
    7%
  • Telecommunications
    6%
  • Consumer Staples
    4%
  • Basic Materials
    3%
  • Energy
    3%
  • Real Estate
    2%
  • Utilities
    2%

The sectoral distribution is broad, with technology (20%) and financial services (13%) leading, followed by industrials and consumer cyclicals. This composition reflects a growth-oriented strategy while maintaining a level of balance across economic sectors. Regularly reviewing sector allocations can help in identifying any over-concentrations or underrepresented areas that could affect portfolio performance during sector-specific downturns.

Regions Info

  • North America
    49%
  • No data
    24%
  • Europe Developed
    11%
  • Asia Emerging
    5%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic exposure is predominantly in North America (49%), with significant international diversification (51%), including developed and emerging markets. This global footprint can enhance returns and reduce risk through exposure to different economic cycles and opportunities. However, the unknown geographic allocation (24%) warrants further investigation to ensure it aligns with the investor's diversification goals and risk tolerance.

Market capitalization Info

  • Mega-cap
    33%
  • Large-cap
    23%
  • Mid-cap
    14%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's market capitalization exposure—33% mega, 23% big, 14% medium, 4% small, and 1% micro—suggests a bias towards larger, more established companies, which typically offer stability and lower volatility. However, incorporating a broader mix, including more small and micro-cap investments, could enhance growth potential, albeit with increased risk.

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, this portfolio appears well-positioned towards achieving an optimal risk-return balance given its current asset allocation. However, continuous evaluation and slight adjustments could further enhance its position on the Efficient Frontier, maximizing returns for the given level of risk.

Dividends Info

  • Vanguard Total Bond Market Index Fund Admiral Shares 3.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 2.14%

The dividend yields from the bonds (3.50%) and stocks (1.10% and 2.70% for U.S. and international, respectively) contribute to the portfolio's total yield of 2.14%. This income stream, particularly from bonds, offers a cushion during market dips and contributes to total returns, highlighting the portfolio's balanced approach between income and growth.

Ongoing product costs Info

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

With an overall expense ratio of 0.04%, the portfolio is efficiently managed, ensuring more of the returns are retained by the investor. Lower costs are a significant factor in long-term investment success, as they compound over time, potentially saving investors a substantial amount of money.

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