A balanced and broadly diversified portfolio with a strong tilt towards US stocks

Report created on Jul 21, 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 equities, with a significant 75% allocation in the Vanguard Total Stock Market Index Fund ETF Shares, focusing on the US market. An additional 15% is invested in the Vanguard Total International Stock Index Fund ETF Shares, providing international exposure. The remaining 10% is held in the Vanguard Federal Money Market Fund, offering liquidity and stability. This composition suggests a balanced approach, leaning towards growth with a cushion against market volatility through the money market fund.

Growth Info

The portfolio has demonstrated robust performance with a Compound Annual Growth Rate (CAGR) of 11.90%. The maximum drawdown experienced was -32.57%, indicating the portfolio's resilience during market downturns. The days contributing to 90% of the returns highlight significant gains concentrated in brief periods, emphasizing the importance of staying invested over the long term to capture these spikes.

Projection Info

Monte Carlo simulations, using historical data to project future outcomes, suggest a wide range of potential returns. With 962 out of 1,000 simulations showing positive returns, the median projected annualized return is 8.33%. This indicates a strong likelihood of positive future performance, though it's important to remember that past performance is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    89%
  • Cash
    1%

The portfolio's asset allocation is heavily skewed towards stocks (89%), with a minimal cash position (1%). This allocation supports the pursuit of growth but comes with higher volatility. The lack of significant investments in other asset classes like bonds or commodities limits diversification benefits that could reduce risk.

Sectors Info

  • Technology
    25%
  • Financials
    14%
  • Consumer Discretionary
    10%
  • Industrials
    9%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation reveals a heavy emphasis on technology (25%), followed by financial services (14%) and consumer cyclicals (10%). This sector distribution aligns with the growth-oriented nature of the portfolio but also exposes it to sector-specific risks, such as regulatory changes or economic cycles affecting these industries disproportionately.

Regions Info

  • North America
    76%
  • Europe Developed
    6%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographic allocation shows a strong bias towards North America (76%), with modest exposure to developed Europe (6%) and emerging Asia (2%). This geographic spread provides some level of international diversification, though the portfolio may benefit from increased exposure to emerging markets and other developed regions to mitigate regional risks.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    28%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    2%

The portfolio's market capitalization breakdown favors mega (37%) and big (28%) cap stocks, which are typically less volatile than smaller companies. However, the relatively lower allocation to small (5%) and micro (2%) caps limits potential for higher returns that these segments can offer, 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.

The current portfolio is well-optimized for a balanced risk-return profile, as indicated by its historical performance and Monte Carlo projections. However, exploring the Efficient Frontier could reveal opportunities to adjust asset allocation for potentially improved risk-adjusted returns without significantly altering the portfolio's overall risk profile.

Dividends Info

  • Vanguard Federal Money Market Fund Investor Shares 4.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.74%

The portfolio's dividend yield stands at 1.74%, with the money market fund contributing a notable 4.20% yield. While the overall yield is modest, it provides a stream of income, contributing to the portfolio's total return and offering some cushion during market volatility.

Ongoing product costs Info

  • 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) 0.03%

The portfolio benefits from exceptionally low costs, with Total Expense Ratios (TERs) of 0.03% for the stock ETFs and 0.05% for the international stock ETF. These low costs enhance long-term returns by minimizing the drag on performance, showcasing the efficiency of index fund investing.

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