A broadly diversified stock focused portfolio with strong historic returns 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 suits an investor who is comfortable with market ups and downs and prioritizes long‑term growth over short‑term stability. They likely have a multi‑decade horizon, such as saving for retirement or building generational wealth, and can tolerate seeing their account drop significantly during bear markets without panicking. They value simplicity, broad diversification, and low fees rather than frequent trading or complex strategies. A moderate‑to‑above‑average risk tolerance fits here, as this person accepts volatility as the “price of admission” for higher potential returns, while trusting that broad global equity exposure will reward patience over long stretches of time.
Positions
-
Vanguard S&P 500 ETF
VOO - US9229083632 50.00% -
Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 50.00%
This setup is beautifully simple: two broad stock ETFs split roughly 50/50 between domestic and international markets, plus a tiny cash sleeve. That means almost the entire portfolio is tied to global equities, with no separate bond or alternative holdings. For a “balanced” risk profile, this is more like a pure stock portfolio, which can swing more in bad markets but typically grows more over long periods. Anyone using a mix like this might consider whether they truly want an all‑equity approach or prefer adding some stability through assets that tend to move differently from stocks over time.
Growth
Looking at the past, a hypothetical $10,000 invested and compounding at a 13.58% CAGR (Compound Annual Growth Rate) would have grown very strongly. CAGR is like your average speed on a long road trip: it smooths out all the ups and downs into a single yearly growth number. That said, there was also a max drawdown of about ‑34%, meaning at one point the portfolio value dropped by roughly a third from a prior peak. This mix clearly rewarded long‑term holders, but it also demanded the emotional ability to sit through large temporary losses without bailing out.
Projection
The Monte Carlo analysis ran 1,000 simulations using past returns and volatility patterns to imagine many possible futures. Think of it like rolling dice thousands of times to see how a long investment journey might play out, not just a single straight line. The median outcome of about 479% suggests strong potential growth, while the 5th percentile near 99% shows that, in unlucky scenarios, results could be flat or slightly negative. The average simulated return of 14.5% looks great but depends on markets behaving similarly to history, which is never guaranteed and can change with new economic or political shocks.
Asset classes
- Stocks 99%
- Cash 1%
- Other 0%
- No data 0%
Asset‑class exposure is almost entirely in stocks, with about 99% equities and 1% in cash. Compared with many “balanced” approaches that mix in bonds or other income‑oriented assets, this is closer to a growth‑tilted profile. The upside is that over long timeframes, stocks have historically offered higher returns than more conservative assets. The trade‑off is sharper downturns and bigger swings in account value. This all‑equity lean fits investors willing to tolerate volatility in exchange for growth, but anyone preferring smoother returns might explore gradually layering in other asset types that can cushion market shocks and provide stability.
Sectors
- Technology 25%
- Financials 18%
- Industrials 12%
- Consumer Discretionary 10%
- Health Care 9%
- Telecommunications 8%
- Consumer Staples 5%
- Basic Materials 5%
- Energy 4%
- Utilities 3%
- Real Estate 2%
Sector exposure is impressively diversified across 11 major segments, with a tilt toward technology, financial services, and industrials. Tech at about a quarter of the portfolio is common in broad market funds and aligns closely with major benchmarks, which is a strong indicator of healthy diversification rather than a concentrated bet. In periods of rising rates or regulatory pressure, tech‑heavy allocations can be bumpier, while more defensive sectors like consumer staples and utilities often hold up better. This spread means the portfolio should broadly reflect the global economy, but it will still feel the impact if market‑wide shocks hit growth‑oriented areas at the same time.
Regions
- North America 54%
- Europe Developed 19%
- Asia Emerging 8%
- Japan 8%
- Asia Developed 6%
- Australasia 2%
- Africa/Middle East 2%
- Latin America 1%
- Europe Emerging 0%
Geographic exposure is well‑spread: just over half in North America, with meaningful stakes in Europe, developed Asia, Japan, and smaller slices in emerging regions. This allocation lines up closely with global market weights, which is a textbook approach for broad diversification. Being globally diversified helps reduce the risk of any single country’s political or economic trouble derailing total returns. At the same time, global stocks can all fall together during big crises, so diversification is more about softening local shocks than completely avoiding downturns. Still, this global mix is well‑balanced and aligns closely with commonly used world equity benchmarks.
Market capitalization
- Mega-cap 46%
- Large-cap 33%
- Mid-cap 17%
- Small-cap 2%
- Micro-cap 0%
Market cap exposure leans heavily toward mega and large companies, with modest exposure to mid caps and only a small slice in small caps. Large firms tend to be more stable, widely researched, and resilient during downturns, which can make the ride a bit smoother than a portfolio dominated by small, more speculative names. However, smaller companies have historically offered periods of stronger growth, albeit with more volatility. This mix mirrors broad market indexes, which is a big positive: it means risk is spread across thousands of businesses, and no single company size segment dominates in a way that would distort overall behavior.
Dividends
- Vanguard S&P 500 ETF 1.10%
- Vanguard Total International Stock Index Fund ETF Shares 2.90%
- Weighted yield (per year) 2.00%
The overall dividend yield around 2% reflects a mix of lower‑yielding U.S. stocks and higher‑yielding international shares. Dividends are the cash payments companies make to shareholders, and they can be an important part of total return, especially when reinvested automatically. This yield is quite typical for a global equity blend and suggests the portfolio balances growth‑oriented companies with more mature, income‑paying firms. For investors who do not need current income, reinvesting these dividends can quietly boost long‑term compounding. For those eventually wanting cash flow, this yield level could form a base, potentially supplemented later with other, more income‑focused holdings if needed.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.04%
Ongoing costs are impressively low, with an overall expense ratio around 0.04%. The expense ratio is like a small yearly “membership fee” charged as a percentage of money invested, and keeping it low helps more of the portfolio’s growth stay in your pocket. Over decades, even tiny fee differences can compound into big dollar amounts, so this cost level is a real strength. It aligns extremely well with best practices for long‑term investing, where low‑cost, broadly diversified building blocks often outperform higher‑fee, more complex setups once all costs are factored into the final results.
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.
From a risk‑return optimization angle, this portfolio sits on the higher‑risk side because it is almost entirely in stocks. The Efficient Frontier is a concept that maps combinations of assets that offer the best possible trade‑off between risk (volatility) and return, given a specific menu of choices. Within just these two ETFs, “optimization” mainly means adjusting the split between domestic and international stocks, not adding new asset types. Shifting that mix might slightly tweak volatility or potential return, but it will still behave like a pure equity portfolio. Efficiency here means best risk‑return ratio with these holdings, not necessarily the smoothest ride.
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