Broad global equity index portfolio with strong diversification and very low ongoing costs

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 setup fits an investor comfortable with moderate‑to‑high risk and significant price swings in pursuit of strong growth. The ideal horizon is long term, often 10 years or more, where there’s time to ride out bear markets and let recoveries work. Goals might include building retirement wealth, growing a nest egg for future major expenses, or compounding assets for the next generation rather than funding near‑term spending. This investor is usually okay seeing temporary drops of 30% or more without feeling forced to sell. They tend to value simplicity, broad diversification, and low costs over trying to outguess the market with constant tactical moves.

Positions

  • STATE STREET EQUITY 500 INDEX II PORTFOLIO STATE STREET EQUITY 500 INDEX II PORTFOLIO
    SSEYX - US85749R3628
    65.00%
  • STATE STREET GLOBAL EQUITY EX-U.S. INDEX PORTFOLIO STATE STREET GLOBAL EQUITY EX-U.S. INDEX PORTFOLIO
    SSGVX - US85749R3545
    20.00%
  • State Street Small/Mid Cap Equity Index
    SSMKX - US85749T4004
    15.00%

This portfolio is almost pure equity, with about two‑thirds in a large US index fund, one‑fifth in global stocks outside the US, and the rest in US small and mid‑cap companies. That structure lines up well with many global equity benchmarks and explains the “Balanced” but equity‑heavy profile. Having three broad index funds keeps things simple and helps avoid accidental concentration in individual companies. For someone relying on this as a core portfolio, the main thing to watch is the complete lack of bonds or defensive assets. If stability or short‑term spending needs are important, gradually adding a small buffer in safer holdings or cash reserves outside this portfolio could help smooth the ride.

Growth Info

Using a simple example, a $10,000 investment growing at a 16.67% compound annual growth rate (CAGR) for 10 years would end up around $46,000. CAGR is just the “average speed” of growth per year over time. That level of return has been excellent versus typical equity benchmarks, though it comes with a max drawdown of about -35%, meaning at one point the value could have fallen from $10,000 to roughly $6,500. This kind of drop is very normal for stock‑heavy portfolios. It’s important to remember that past performance only shows what happened in one period and doesn’t guarantee anything about the next decade.

Projection Info

The Monte Carlo analysis simulates many possible futures based on how similar portfolios behaved historically, then shuffles those returns randomly. Here, 1,000 simulations show an annualized return around 17.4%, with 999 finishing positive. The 5th percentile ending value at 142% means even in weaker scenarios, the portfolio still grows, while the median and higher percentiles are very strong. This paints an optimistic picture but should be treated as a probability range, not a promise. Markets can change in ways the model has never seen. It’s useful to treat these projections as a planning tool and sanity check, then revisit them periodically as conditions evolve.

Asset classes Info

  • Stocks
    98%
  • Cash
    2%
  • Bonds
    0%
  • Other
    0%
  • Not Classified
    0%

Almost all of this portfolio is in stocks, with about 98% equity and a small 2% in cash, and no bonds at all. That’s more aggressive than many “balanced” mixes, which often blend stocks with a meaningful slice of bonds to smooth volatility. Equities are the main driver of long‑term growth, but they also swing much more during downturns. This allocation is well‑balanced and aligns closely with global standards for an equity‑focused approach. For someone with a long time horizon and ability to ride out big drops, this can be fine, but if spending needs are within the next five to ten years, holding a separate cushion in safer assets can reduce the pressure to sell during bad markets.

Sectors Info

  • Technology
    29%
  • Financials
    16%
  • Industrials
    11%
  • Consumer Discretionary
    10%
  • Health Care
    10%
  • Telecommunications
    9%
  • Consumer Staples
    5%
  • Basic Materials
    3%
  • Energy
    3%
  • Real Estate
    3%
  • Utilities
    2%

Sector exposure is very broad: technology leads at 29%, followed by financials, industrials, consumer cyclicals, healthcare, and communication services. This sector composition matches benchmark data, which is a strong indicator of diversification and helps avoid heavy bets on any single area of the economy. A tech tilt does mean returns can be more sensitive to interest rates or growth expectations, since growth‑oriented sectors often move more when rates change. Because the exposure mirrors major indexes, it’s essentially a “market‑weight” view rather than an active bet. Keeping this structure and resisting the urge to chase the latest hot sector can support more stable decision‑making through different cycles.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Japan
    3%
  • Asia Emerging
    3%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Europe Emerging
    0%

Geographically, about 81% of the portfolio is in North America, with the rest spread across developed Europe, Japan, other developed Asia, and small slices in emerging regions. That US tilt is similar to many domestic investor portfolios and has been rewarding during recent years of strong US performance. At the same time, it means results will be heavily driven by US economic and policy conditions. The non‑US exposure does add meaningful diversification, especially if other regions outperform in future decades. Over time, some investors choose to slowly rebalance so that international holdings keep pace as markets evolve, rather than letting one region dominate entirely as returns compound.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    29%
  • Mid-cap
    19%
  • Small-cap
    8%
  • Micro-cap
    3%

The spread across company sizes is quite healthy: a large anchor in mega and big companies, with solid exposure down the spectrum to mid, small, and a small slice of micro caps. Larger firms tend to be more stable and widely followed, while smaller ones can be more volatile but sometimes offer higher growth potential. This blend gives access to the full corporate landscape without leaning too hard into the riskiest small names. Because the allocation tracks broad indexes, it naturally adjusts as companies grow or shrink over time. Staying with this market‑cap structure, instead of trying to time size tilts, can keep the portfolio simpler and reduce unnecessary trading.

Dividends Info

  • STATE STREET EQUITY 500 INDEX II PORTFOLIO STATE STREET EQUITY 500 INDEX II PORTFOLIO 2.10%
  • STATE STREET GLOBAL EQUITY EX-U.S. INDEX PORTFOLIO STATE STREET GLOBAL EQUITY EX-U.S. INDEX PORTFOLIO 3.10%
  • Weighted yield (per year) 1.98%

The total dividend yield is about 1.98%, with slightly higher income from non‑US stocks. Dividend yield is the annual cash payout as a percentage of portfolio value, similar to rental income from a property. For a growth‑oriented equity mix, this level of income is very typical and supports a strategy where most of the return comes from price appreciation rather than cash flow. Reinvesting dividends back into the portfolio quietly boosts compounding over time. For someone seeking higher regular income, extra yield would usually come at the cost of concentrating in income‑heavy areas, so it’s often cleaner to keep this diversified structure and plan withdrawals based on an overall spending rule instead.

Ongoing product costs Info

  • STATE STREET EQUITY 500 INDEX II PORTFOLIO STATE STREET EQUITY 500 INDEX II PORTFOLIO 0.02%
  • STATE STREET GLOBAL EQUITY EX-U.S. INDEX PORTFOLIO STATE STREET GLOBAL EQUITY EX-U.S. INDEX PORTFOLIO 0.04%
  • State Street Small/Mid Cap Equity Index 0.04%
  • Weighted costs total (per year) 0.03%

Total ongoing costs (TER) around 0.03% are extremely low, especially for a portfolio this diversified. TER, or total expense ratio, is the percentage skimmed each year to run the funds, similar to a small annual service fee. The costs are impressively low, supporting better long‑term performance because more of the return stays in the account instead of going to managers. Over decades, even a difference of 0.3–0.5% a year can compound into a large dollar gap, so this ultra‑low‑fee setup is a real strength. The main thing is simply to maintain this cost discipline and be cautious about layering on higher‑fee products without a very clear purpose.

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.

On a risk‑return chart, this portfolio should sit reasonably close to the Efficient Frontier for an equity‑only mix. The Efficient Frontier is just the set of allocations that offer the best trade‑off between risk (volatility) and return using the chosen building blocks. Here, the split between US large caps, global ex‑US, and US small/mid caps looks quite sensible, and small tweaks between them would likely only nudge risk or return slightly. Efficiency in this sense is about getting the most expected return per unit of bumpiness, not about hitting every possible diversification angle. The bigger decision lever is the overall stock vs. safer assets split, which sits outside this current design.

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