A balanced and highly diversified portfolio with a strong emphasis on global equities and bonds

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Balanced Investors

This portfolio suits an investor seeking balanced growth with moderate risk tolerance and a long-term horizon. It prioritizes steady returns while maintaining exposure to global equities, making it ideal for individuals looking to build wealth over time. The investor likely appreciates the blend of growth and income, with a keen interest in maintaining a diversified portfolio that can weather various market conditions.

Positions

  • Vanguard Total Stock Market Index Fund ETF Shares
    VTI - US9229087690
    57.00%
  • Vanguard Total International Stock Index Fund ETF Shares
    VXUS - US9219097683
    23.00%
  • Vanguard Total Bond Market Index Fund ETF Shares
    BND - US9219378356
    20.00%

This portfolio showcases a strategic blend of 57% in U.S. equities, 23% in international equities, and 20% in U.S. bonds, positioning it as a balanced portfolio with a slight tilt towards stocks. The high allocation in the Vanguard Total Stock Market Index Fund ETF Shares indicates a robust exposure to the U.S. market, while the Vanguard Total International Stock Index Fund ETF Shares enhance global diversification. The Vanguard Total Bond Market Index Fund ETF Shares provide a stabilizing effect, potentially reducing volatility and offering a cushion against market downturns. This composition aligns well with a balanced risk profile, aiming to achieve growth while managing risk through bonds.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 10.98% and a maximum drawdown of -29.77%, the portfolio demonstrates resilience and the potential for strong returns over time. The days that contribute to 90% of returns being limited to 32 days highlights the impact of significant market movements on portfolio performance. Comparing these metrics to benchmarks, the portfolio's historical performance suggests it has navigated market cycles effectively, balancing growth with risk management. However, investors should remember that past performance is not indicative of future results.

Projection Info

Monte Carlo simulations, using historical data to project potential future outcomes, suggest a wide range of results, with a 50th percentile outcome of 191.1% growth. This variance underscores the inherent uncertainty in investing and the importance of maintaining a long-term perspective. While the simulations are optimistic, with 978 out of 1,000 showing positive returns, investors should approach these projections with caution, as they are based on past data and cannot predict future market conditions accurately.

Asset classes Info

  • Stocks
    79%
  • Bonds
    20%
  • Cash
    1%
  • Other
    0%
  • No data
    0%

Allocating 79% to stocks and 20% to bonds, with a marginal 1% in cash, this portfolio is designed for balanced growth. The stock allocation is split between U.S. and international markets, providing broad exposure to global economic growth, while the bond portion offers income and reduces overall volatility. This asset class distribution is in line with a balanced investment strategy, aiming to capture equity market growth while mitigating risk through fixed-income securities.

Sectors Info

  • Technology
    22%
  • Financials
    13%
  • Industrials
    9%
  • Consumer Discretionary
    8%
  • Health Care
    7%
  • Telecommunications
    7%
  • Consumer Staples
    4%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    2%

The portfolio's sector allocation is well-diversified, with technology (22%), financial services (13%), and industrials (9%) as the top sectors. This diversification supports resilience against sector-specific downturns and capitalizes on growth opportunities across the economy. However, the heavy weighting in technology, a sector known for volatility, may introduce higher risk. Balancing sector exposures can help manage this risk, ensuring no single sector disproportionately affects portfolio performance.

Regions Info

  • North America
    59%
  • Europe Developed
    9%
  • Asia Emerging
    4%
  • Japan
    3%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    0%
  • Europe Emerging
    0%

Geographic diversification is evident, with a 59% allocation to North America and significant investments in developed Europe (9%) and emerging Asia (4%). This global exposure enables the portfolio to benefit from growth in various economies while mitigating the risk tied to any single region. However, the relatively low exposure to emerging markets could limit potential high-growth opportunities. Considering a slight increase in emerging markets exposure could enhance growth prospects and diversification.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    24%
  • Mid-cap
    15%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown—34% mega, 24% big, 15% medium, 4% small, and 1% micro—indicates a conservative tilt towards larger, more established companies. This bias towards mega and big caps can provide stability and lower volatility but may also limit growth potential compared to more small and micro-cap investments. Diversifying further into smaller capitalizations could offer higher growth prospects, albeit with increased risk.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 2.06%

The portfolio's dividend yield, averaging 2.06%, contributes to its total return, providing a steady income stream in addition to potential capital gains. The bond fund's higher yield of 3.80% bolsters income, while the equity funds' yields reflect a balance between growth and income. For investors seeking regular income or a more conservative growth approach, maintaining or slightly increasing the bond allocation could be beneficial.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • 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%

With total portfolio costs averaging 0.03%, this portfolio benefits from exceptionally low expenses, which can significantly enhance long-term returns. Low-cost index funds, like those chosen here, are efficient vehicles for capturing market returns without eroding gains through high fees. Continuing to prioritize low-cost investments will remain a cornerstone of effective portfolio management.

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.

Considering the Efficient Frontier, this portfolio appears well-positioned near the optimal balance of risk and return for its given asset allocation. However, there's always room for refinement. Regularly reviewing and adjusting the asset mix in response to changing market conditions or personal financial goals can help maintain this balance. Incorporating assets with different risk, return, and correlation characteristics might further optimize the portfolio's position on the Efficient Frontier.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.