A balanced and broadly diversified portfolio emphasizing global equity exposure

Report created on Aug 3, 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 showcases a strong emphasis on global equities, with 45% in a U.S. large-cap ETF and 55% spread across international, small-cap, and emerging markets ETFs. This composition reflects a strategic balance between the stability offered by large-cap U.S. stocks and the growth potential in international and smaller markets. The singular focus on equities, complemented by a minimal cash holding, positions this portfolio for growth, albeit with a level of risk inherent in stock investments.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 10.15%, with a maximum drawdown of -24.67%. This performance is indicative of a robust growth trajectory, though the drawdown underscores the volatility and risk associated with a stock-heavy allocation. The days contributing most to returns highlight the impact of significant market movements, emphasizing the importance of long-term holding and the potential for volatility.

Projection Info

Monte Carlo simulations, utilizing 1,000 iterations, suggest a wide range of potential outcomes, from a 5th percentile loss to significant gains at the 67th percentile. This variance underscores the uncertainty inherent in stock markets and the value of diversification and long-term investment strategies. The simulations provide a probabilistic forecast based on historical data, though they cannot guarantee future results.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

With 99% of the portfolio allocated to stocks, the diversification across asset classes is limited. This concentration in equities is aligned with a growth-oriented strategy but comes with higher volatility. Expanding into other asset classes, such as bonds or real estate, could provide additional diversification benefits, potentially reducing portfolio volatility while still aiming for growth.

Sectors Info

  • Technology
    20%
  • Financials
    20%
  • Industrials
    13%
  • Consumer Discretionary
    12%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Basic Materials
    6%
  • Energy
    5%
  • Utilities
    2%
  • Real Estate
    2%

The sectoral allocation is well-balanced, covering a broad spectrum of industries from technology to consumer goods. This diversification within equities can help mitigate sector-specific risks. However, the significant weight in technology and financial services sectors suggests a potential vulnerability to sector-specific downturns, warranting a periodic review to ensure alignment with investment objectives.

Regions Info

  • North America
    58%
  • Europe Developed
    16%
  • Japan
    8%
  • Asia Emerging
    7%
  • Asia Developed
    5%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

The geographic distribution emphasizes a strong North American presence, complemented by diversified international exposure. This global footprint enhances the portfolio's potential to capitalize on growth across different economies. However, the relatively lower allocation to emerging markets and certain developed regions might limit exposure to high-growth opportunities outside the U.S.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    28%
  • Mid-cap
    18%
  • Small-cap
    9%
  • Micro-cap
    6%

The market capitalization breakdown shows a strategic tilt towards mega and big-cap companies, known for their stability and lower volatility compared to smaller companies. However, the inclusion of small and micro-cap ETFs introduces growth potential and diversification, albeit with increased risk. This mix supports a balanced approach to capturing growth while managing volatility.

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.

When considering risk vs. return optimization, this portfolio appears well-positioned on the Efficient Frontier, indicating an effective balance between expected returns and risk level. This balance is key for long-term growth, suggesting that the current allocation is close to optimal given the investor's risk tolerance and investment goals. However, continuous monitoring and periodic rebalancing are essential to maintain this optimization over time.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.80%
  • Avantis® Emerging Markets Value ETF 4.00%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Vanguard FTSE All-World ex-US Index Fund ETF Shares 2.80%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 2.13%

The dividend yields across the ETFs contribute to the portfolio's total yield of 2.13%, providing a source of income alongside potential capital appreciation. This yield reflects a balanced approach, capturing income from higher-yielding international and small-cap value ETFs while maintaining growth potential through lower-yielding large-cap ETFs. Dividends can offer a cushion during market dips, underscoring their role in a diversified investment strategy.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard FTSE All-World ex-US Index Fund ETF Shares 0.07%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.11%

The portfolio's overall expense ratio is remarkably low, averaging 0.11% across all holdings. This cost-efficiency is crucial for long-term growth, as lower costs directly translate to higher net returns. The choice of low-cost ETFs demonstrates a strategic focus on maximizing investor returns by minimizing expenses, a principle that aligns with best practices in portfolio management.

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