Balanced and broadly diversified portfolio with a focus on global stocks and value investing

Report created on Nov 5, 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 anchored by a significant allocation to the Vanguard Total Stock Market Index Fund ETF Shares, comprising 60% of the total, alongside a 30% stake in the Vanguard Total International Stock Index Fund ETF Shares. The inclusion of the iShares US Small Cap Value Factor ETF and the Vanguard Value Index Fund ETF Shares, each at 5%, introduces a tilt towards value and small-cap stocks. This composition suggests a strategy that balances exposure to the broad U.S. equity market with international diversification and an emphasis on value investing.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 14.91% and a maximum drawdown of -25.02%, the portfolio has demonstrated robust growth potential alongside significant volatility. The days contributing to 90% of returns indicate that a small number of very good days drive a large portion of the portfolio's performance. This underscores the importance of staying invested through market cycles to capture these critical gains.

Projection Info

Using Monte Carlo simulation, which projects future performance based on historical data, the portfolio shows a wide range of outcomes with a median increase of 568.6%. While simulations suggest a high likelihood of positive returns, investors should remember that past performance is not indicative of future results, and these projections do not guarantee success.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The nearly exclusive allocation to stocks (99%) with a minimal cash reserve (1%) positions this portfolio for growth while accepting higher volatility. This asset class distribution aligns with the portfolio's balanced risk classification but may require periodic reassessment to ensure it continues to meet the investor's risk tolerance and time horizon.

Sectors Info

  • Technology
    25%
  • Financials
    17%
  • Industrials
    12%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    4%
  • Utilities
    3%
  • Real Estate
    3%

Sector allocations are concentrated in technology, financial services, and industrials, which are sectors typically associated with growth and cyclical trends. This sectoral emphasis might increase the portfolio's sensitivity to economic cycles. Diversifying further across sectors could mitigate some risk without significantly diluting the growth potential.

Regions Info

  • North America
    72%
  • Europe Developed
    11%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation heavily favors North America (72%), with diversified but smaller exposures to developed European markets, emerging Asian economies, and other regions. This distribution reflects a solid foundation in the more stable, developed markets while still tapping into the growth potential of emerging markets.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    30%
  • Mid-cap
    18%
  • Small-cap
    6%
  • Micro-cap
    6%

The market capitalization breakdown shows a preference for mega and big-cap stocks, which tend to be more stable and less volatile than smaller companies. However, the presence of small and micro-cap exposures, especially through the iShares US Small Cap Value Factor ETF, introduces higher 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.

The portfolio's current expected return is slightly below the optimal level suggested by the Efficient Frontier analysis, which indicates there might be room for risk-return optimization without increasing the overall risk level. Adjusting asset allocations to align more closely with the Efficient Frontier could enhance returns for the same level of risk.

Dividends Info

  • iShares US Small Cap Value Factor ETF 1.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Value Index Fund ETF Shares 2.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.66%

The overall dividend yield of 1.66% contributes to the portfolio's total return, with the Vanguard Value Index Fund ETF Shares and Vanguard Total International Stock Index Fund ETF Shares providing higher yields. This income can help cushion the portfolio against market volatility and provide reinvestment opportunities for additional compounding.

Ongoing product costs Info

  • iShares US Small Cap Value Factor ETF 0.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Value Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

The portfolio's average total expense ratio (TER) of 0.04% is impressively low, maximizing the potential for net returns over the long term. Keeping costs low is crucial for long-term investment success, as even small differences in fees can significantly impact total returns over decades.

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