A balanced and highly diversified portfolio with a focus on stocks and global exposure

Report created on Aug 2, 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 characterized by a heavy allocation towards equities, with a 95% investment in various ETFs that cover the total stock market, international stocks, the NASDAQ 100, and U.S. dividend equities. The remaining 5% is invested in bonds, offering a modest buffer against the volatility inherent in stock investments. The broad diversification across major asset classes and geographic regions positions this portfolio well for balanced investors seeking growth while managing risk.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 12.04% and a maximum drawdown of -25.85%, the portfolio has demonstrated strong growth potential alongside notable volatility. The days contributing to 90% of returns highlight the impact of significant market movements on performance. Comparing these figures against a balanced benchmark could provide further insight into the portfolio's risk-adjusted returns, suggesting it has navigated market fluctuations effectively to deliver robust growth.

Projection Info

Monte Carlo simulations, which use historical data to project potential future outcomes, indicate a wide range of possible performance scenarios for this portfolio. With 982 out of 1,000 simulations showing positive returns and a median projected increase of 257%, the analysis suggests a high likelihood of future growth. However, it's crucial to remember that such projections cannot guarantee future results and should be viewed as one of many tools in making informed investment decisions.

Asset classes Info

  • Stocks
    94%
  • Bonds
    5%
  • Cash
    1%

The portfolio's asset class distribution, with a 94% allocation to stocks and 5% to bonds, reflects a growth-oriented strategy with a moderate tolerance for risk. This allocation is well-suited for investors aiming for long-term capital appreciation. However, the minimal bond holding offers limited protection against stock market volatility, which could be a concern during downturns.

Sectors Info

  • Technology
    25%
  • Financials
    14%
  • Consumer Discretionary
    10%
  • Industrials
    10%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    7%
  • Energy
    5%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sectoral allocation shows a significant emphasis on technology, financial services, and consumer cyclicals, which are sectors often associated with higher growth and, consequently, higher volatility. This concentration may increase the portfolio's sensitivity to market cycles and sector-specific risks. Diversifying across a wider range of sectors could help mitigate these risks and stabilize returns over time.

Regions Info

  • North America
    67%
  • Europe Developed
    12%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation underscores a strong bias towards North American markets, complemented by diversified exposure to developed and emerging markets worldwide. This global spread helps mitigate the impact of regional downturns but also introduces currency and geopolitical risks. The relatively low exposure to emerging markets may limit potential high-growth opportunities available in those regions.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    32%
  • Mid-cap
    18%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown, with a focus on mega and large-cap stocks, suggests a preference for established, potentially less volatile companies. While this may contribute to stability, the relatively smaller allocation to mid, small, and micro-cap stocks could mean missing out on higher growth opportunities these segments can offer.

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, which aims to maximize returns for a given level of risk, this portfolio appears well-positioned but may benefit from slight adjustments. For instance, increasing bond exposure or diversifying into alternative asset classes could potentially offer a better risk-return trade-off, aligning more closely with the Efficient Frontier's optimal path.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.50%
  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.90%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.99%

The dividend yields, especially from the Schwab U.S. Dividend Equity ETF and the Vanguard Total Bond Market Index Fund ETF Shares, contribute to the portfolio's total return. These yields provide a steady income stream, which can be particularly valuable during market downturns or for investors seeking regular income.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • 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) 0.06%

The overall portfolio cost, reflected by a Total Expense Ratio (TER) of 0.06%, is impressively low, enhancing long-term return potential by minimizing the drag on performance. Keeping costs low is crucial for maximizing investment growth, especially in a diversified portfolio where the impact of fees can compound over time.

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