Balanced and highly diversified portfolio with strong emphasis on global equities and fixed income

Report created on Aug 7, 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 diversified equity and fixed-income ETFs, with a significant allocation to the Vanguard Total Stock Market Index Fund ETF Shares at 40%. The inclusion of both developed and emerging market funds, alongside specific sector and momentum ETFs, suggests a strategy aiming for broad market exposure while seeking additional growth through targeted investments. The balance between large-cap, small-cap, developed, and emerging markets, complemented by a fixed income component, indicates a thoughtful approach to diversification and risk management.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 11.33%, with a maximum drawdown of -26.15%. These figures highlight the portfolio's ability to generate strong returns while also experiencing significant volatility. The days contributing most to returns are relatively few, suggesting that timing the market could be less important than maintaining a long-term investment strategy. Comparing this performance to a suitable benchmark would provide further context, especially regarding the portfolio's risk-adjusted returns.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, indicate a wide range of potential future performances for this portfolio. With a median projected increase of 293.4% and 957 out of 1,000 simulations showing positive returns, the forward-looking outlook appears robust. However, it's crucial to remember that these projections are speculative and depend heavily on past market behavior, which is not a reliable indicator of future performance.

Asset classes Info

  • Stocks
    89%
  • Bonds
    10%
  • Cash
    1%

The portfolio's allocation is predominantly in stocks (89%), with a smaller portion in bonds (10%) and a minimal cash reserve (1%). This asset class distribution supports the portfolio's balanced profile, leaning towards growth through equities while using bonds to mitigate volatility. The minimal cash holding suggests a strategy fully invested in the market, aiming to maximize growth potential over holding liquidity for short-term opportunities or safety.

Sectors Info

  • Technology
    21%
  • Financials
    16%
  • Consumer Discretionary
    11%
  • Industrials
    11%
  • Telecommunications
    7%
  • Health Care
    6%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    4%
  • Utilities
    2%
  • Real Estate
    2%

With technology and financial services making up 37% of the portfolio, there's a clear emphasis on sectors that can offer high growth potential. However, this concentration also introduces sector-specific risks, particularly in volatile market conditions or during economic downturns affecting these industries. The presence of consumer cyclicals, industrials, and a spread across other sectors, though, helps balance this risk, contributing to the portfolio's diversified nature.

Regions Info

  • North America
    61%
  • Europe Developed
    9%
  • Asia Emerging
    7%
  • Japan
    4%
  • Asia Developed
    4%
  • Africa/Middle East
    2%
  • Australasia
    1%
  • Latin America
    1%

The geographic allocation shows a strong bias towards North America (61%), which is common for U.S.-based investors but does introduce home country bias risk. The exposure to developed Europe (9%), Asia Emerging (7%), and other regions provides some level of global diversification. However, the relatively low allocations to emerging markets and other developed regions might limit the portfolio's exposure to global growth opportunities and diversification benefits.

Market capitalization Info

  • Mega-cap
    33%
  • Large-cap
    23%
  • Mid-cap
    16%
  • Small-cap
    10%
  • Micro-cap
    6%

The portfolio's market capitalization breakdown demonstrates a strategic allocation across mega (33%), big (23%), medium (16%), small (10%), and micro (6%) cap stocks. This spread across the size spectrum supports diversification and risk management, allowing the portfolio to capture growth in smaller companies while relying on the stability of larger firms. However, the significant allocation to mega and big cap stocks suggests a conservative tilt, potentially at the expense of higher growth opportunities in smaller cap segments.

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, given its current asset allocation. However, continuous review and adjustment are essential to maintain this balance, especially as market conditions change. Rebalancing to ensure alignment with the investor's risk tolerance and investment goals can help optimize the risk-return profile over time.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.70%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Vanguard Extended Duration Treasury Index Fund ETF Shares 4.80%
  • Invesco NASDAQ 100 ETF 0.50%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.70%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 2.04%

The portfolio's overall dividend yield of 2.04% contributes to its total return, providing a steady income stream in addition to potential capital gains. The variation in yields across the ETFs, from 0.50% to 4.80%, reflects the diverse income-generating potential within the portfolio. For investors valuing income alongside growth, this diversified approach to dividend-yielding investments is positive, though the focus should remain on total return.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard Extended Duration Treasury Index Fund ETF Shares 0.06%
  • Invesco NASDAQ 100 ETF 0.15%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.09%

With a total expense ratio (TER) of 0.09%, the portfolio is cost-efficient, minimizing the drag on returns caused by fees. This low-cost approach is particularly beneficial over the long term, as even small differences in fees can significantly impact compounded returns. The portfolio's focus on ETFs, known for their lower costs compared to actively managed funds, supports its performance potential.

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