A balanced and highly diversified portfolio with a strategic mix of global stocks and bonds

Report created on Jul 22, 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 with a significant emphasis on equities, comprising 45% in a total stock market ETF and 27.5% in an international stock ETF, highlighting a broad exposure to global equities. The inclusion of 22.5% in a total world bond ETF and 5% in gold ETFs illustrates a conservative approach to balance and diversify against market volatility. This composition aligns well with a balanced investment strategy, aiming to capture growth through equities while mitigating risks through bonds and gold.

Growth Info

Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 10.14%, with a maximum drawdown of -25.87%. These figures suggest a resilient performance through market cycles, with the portfolio's diversification playing a key role in smoothing out returns. The days contributing to 90% of returns being limited to 20 indicates that significant gains were concentrated in relatively few, strong market days, emphasizing the importance of staying invested over the long term.

Projection Info

Monte Carlo simulations, which use historical data to project potential future outcomes, suggest a wide range of possible results for this portfolio. With a median projected growth of 258.4% and 991 out of 1,000 simulations showing positive returns, the outlook appears optimistic. However, it's crucial to remember that these projections are based on past performance, which is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    72%
  • Bonds
    22%
  • Other
    5%
  • Cash
    1%

The portfolio's asset allocation—72% in stocks, 22% in bonds, and 5% in other assets (including gold)—is indicative of a balanced approach, leaning slightly towards growth. This mix provides a solid foundation for capital appreciation through equities, while bonds and gold offer a cushion against market downturns. The 1% allocation to cash allows for flexibility and liquidity, which is beneficial for taking advantage of investment opportunities as they arise.

Sectors Info

  • Technology
    18%
  • Financials
    13%
  • Industrials
    8%
  • Consumer Discretionary
    8%
  • Health Care
    7%
  • Telecommunications
    6%
  • Consumer Staples
    4%
  • Basic Materials
    3%
  • Energy
    3%
  • Real Estate
    2%
  • Utilities
    2%

With sector allocations spread across technology (18%), financial services (13%), and industrials (8%), among others, the portfolio is well-positioned to benefit from growth in key areas of the economy. However, the heavy weighting in technology could introduce volatility, especially in market downturns. Diversification across sectors should help mitigate this risk, but investors should remain mindful of sector-specific trends and their potential impact.

Regions Info

  • North America
    47%
  • Europe Developed
    11%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic distribution shows a strong bias towards North America (47%), with developed Europe (11%) and emerging Asian markets (4%) providing international exposure. This geographic spread enhances diversification, reducing the portfolio's vulnerability to region-specific economic downturns. However, the limited exposure to emerging markets may mean missing out on higher growth opportunities available in these regions.

Market capitalization Info

  • Mega-cap
    31%
  • Large-cap
    22%
  • Mid-cap
    13%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown—31% mega, 22% big, 13% medium, 4% small, and 1% micro—reflects a conservative bias towards larger, more established companies. This allocation is likely to provide stability and lower volatility, but may also limit potential for outsized gains from smaller, faster-growing firms.

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-optimized for a balance between risk and return. The current allocation suggests a strategic approach to maximizing returns for a given level of risk. However, continuous reassessment is vital to maintain this balance, especially as market conditions and personal investment goals evolve.

Dividends Info

  • Vanguard Total World Bond ETF 4.00%
  • iShares Core MSCI Total International Stock ETF 3.00%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 2.26%

The portfolio's dividend yield of 2.26% contributes to its total return, offering a steady income stream in addition to potential capital appreciation. This yield, derived from both the stock and bond ETFs, underscores the portfolio's balanced approach, providing cash flow which can be reinvested or used as income.

Ongoing product costs Info

  • Vanguard Total World Bond ETF 0.05%
  • SPDR Gold Mini Shares 0.10%
  • iShares Core MSCI Total International Stock ETF 0.07%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.05%

With an overall Total Expense Ratio (TER) of 0.05%, the portfolio benefits from low costs, which is crucial for enhancing long-term returns. Low-cost ETFs are an efficient way to gain broad market exposure without eroding returns through high fees, ensuring more of the investment's growth is retained by the investor.

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