A balanced and highly diversified portfolio with global exposure and a focus on stocks
Report created on Sep 10, 2025Risk profile
4/7
Diversification profile
5/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 50.00% -
IE iShares Core MSCI EAFE ETF
IEFA - US46432F8427 25.00% -
EE iShares MSCI Emerging Markets ETF
EEM - US4642872349 15.00% -
FD Fidelity Govt Cash Rsrvs
FDRXX - US3160671075 5.00% -
GL SPDR® Gold Shares
GLD - US78463V1070 5.00%
The portfolio composition reveals a strategic allocation with 50% in a broad U.S. stock market ETF, 25% in developed international markets, 15% in emerging markets, and a 10% combined allocation to cash equivalents and gold. This blend underscores a robust approach to diversification across asset classes and geographies, aiming to balance growth potential with risk mitigation. The heavy weighting towards equities, particularly with a significant portion in the U.S. market, suggests a tilt towards capital appreciation, while the inclusion of cash and gold serves as a hedge against market volatility.
Growth
Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 11.69%, with a maximum drawdown of -31.59%. These figures indicate a strong performance relative to the inherent risks, as evidenced by the portfolio's balanced risk classification. The days contributing to 90% of returns highlight the impact of significant market movements on portfolio performance. While past performance is encouraging, it's crucial to remember that it doesn't guarantee future results, underscoring the importance of ongoing risk management.
Projection
Forward projections, based on Monte Carlo simulations, offer a range of potential outcomes from optimistic to conservative. With a median projection suggesting a 192% increase and a high likelihood of positive returns in 968 out of 1,000 simulations, the portfolio appears well-positioned for growth. However, these simulations are inherently limited by reliance on historical data, which may not fully anticipate future market conditions. Investors should use these projections as one of several tools in planning their financial future.
Asset classes
- Stocks 90%
- Other 5%
The allocation across asset classes, with a dominant 90% in stocks and a 5% allocation to gold as an alternative investment, reflects a growth-oriented strategy with a moderate risk profile. This allocation aligns with the portfolio's balanced risk classification, aiming to capitalize on the higher potential returns of equities while using gold and cash equivalents to provide stability during market downturns. Adjusting this mix can further tailor the risk-return profile to individual investor preferences.
Sectors
- Technology 22%
- Financials 16%
- Industrials 10%
- Consumer Discretionary 10%
- Health Care 8%
- Telecommunications 8%
- Consumer Staples 5%
- Basic Materials 3%
- Energy 3%
- Real Estate 2%
- Utilities 2%
Sectoral allocation shows a diversified yet focused approach, with technology and financial services making up a significant portion of the portfolio. This concentration in sectors known for growth and innovation may enhance returns but also exposes the portfolio to sector-specific risks, such as regulatory changes or economic cycles affecting these industries. Balancing sector exposure can mitigate these risks while still capturing the growth potential of these dynamic sectors.
Regions
- North America 50%
- Europe Developed 15%
- Asia Emerging 8%
- Japan 6%
- Asia Developed 5%
- Australasia 2%
- Africa/Middle East 2%
- Latin America 1%
Geographic exposure is broadly diversified, with a notable tilt towards North America and developed European markets, supplemented by strategic positions in emerging markets and Asia. This global footprint enhances diversification, reducing the impact of regional economic downturns on the overall portfolio. However, the relatively lower exposure to emerging markets and certain developed regions might limit potential gains from high-growth areas, suggesting a review of geographic allocation could be beneficial.
Market capitalization
- Mega-cap 40%
- Large-cap 28%
- Mid-cap 15%
- No data 5%
- Small-cap 4%
- Micro-cap 1%
The market capitalization breakdown, favoring mega and big-cap stocks, suggests a preference for established, large-scale companies known for their stability and potential for steady growth. While this may reduce volatility, it could also limit exposure to the higher growth potential of smaller companies. Diversifying across different market caps could introduce more growth opportunities, 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, the portfolio appears well-optimized for its current risk-return profile. However, continuous review and rebalancing could further refine its efficiency, ensuring that the allocation remains aligned with evolving market conditions and personal investment goals. Optimization is not a one-time task but an ongoing process that can significantly impact portfolio performance over time.
Dividends
- iShares MSCI Emerging Markets ETF 2.30%
- iShares Core MSCI EAFE ETF 3.00%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Weighted yield (per year) 1.70%
The dividend yield component of this portfolio contributes to its total return, providing a steady income stream in addition to potential capital gains. With a total yield of 1.70%, the portfolio offers a balance between income and growth. Investors seeking higher income might explore opportunities to increase the yield through assets with higher dividend payouts while considering the impact on the portfolio's overall risk profile.
Ongoing product costs
- iShares MSCI Emerging Markets ETF 0.70%
- Fidelity Govt Cash Rsrvs 0.26%
- SPDR® Gold Shares 0.40%
- iShares Core MSCI EAFE ETF 0.07%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Weighted costs total (per year) 0.17%
Portfolio costs are impressively low, with a Total Expense Ratio (TER) of 0.17%, underscoring efficient management and selection of cost-effective investment vehicles. Lower costs directly translate to higher net returns for investors, making cost control a critical aspect of portfolio management. Continuously monitoring and minimizing investment costs remains a key strategy for enhancing long-term performance.
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