A cautious portfolio balancing growth and stability with a focus on US assets

Report created on Oct 29, 2025

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

This portfolio is predominantly invested in two asset classes: stocks and cash equivalents, with a significant allocation towards U.S. small-cap value stocks (45%) and ultra-short-term Treasury bonds (45%). The remaining 10% is in a broad-market ETF tracking the S&P 500. This composition reflects a cautious approach, aiming to balance growth potential with risk management. The heavy weighting in cash equivalents suggests a strong preference for capital preservation, while the small-cap and S&P 500 allocations provide exposure to equity markets for growth.

Growth Info

The portfolio's historical performance, with a Compound Annual Growth Rate (CAGR) of 12.86%, is notable. The maximum drawdown of -19.86% indicates a relatively moderate level of risk, considering the portfolio's cautious profile. Days contributing to 90% of returns being few suggests that performance peaks were concentrated, a common characteristic in portfolios with significant equity components. This performance data, while encouraging, should be viewed with the understanding that past results do not guarantee future returns.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 525.7% in portfolio value, highlighting the potential for substantial growth. However, the broad spread between the 5th and 67th percentiles underscores the uncertainty inherent in these projections. While these simulations offer a glimpse into possible futures, they rely on historical data and assumptions that may not fully account for unforeseen market developments.

Asset classes Info

  • Stocks
    55%
  • Cash
    45%

The split between stocks (55%) and cash equivalents (45%) in this portfolio underlines a cautious investment strategy, prioritizing stability and liquidity over higher returns typically associated with greater equity exposure. This allocation is particularly suitable for investors with a lower risk tolerance, aiming to protect against market volatility while still participating in equity market growth.

Sectors Info

  • Financials
    13%
  • Consumer Discretionary
    10%
  • Industrials
    8%
  • Energy
    7%
  • Technology
    6%
  • Basic Materials
    3%
  • Health Care
    2%
  • Consumer Staples
    2%
  • Telecommunications
    2%
  • Real Estate
    1%

Sectoral allocation within the equity component is diversified across financial services, consumer cyclicals, industrials, and energy, among others. This spread mitigates sector-specific risks and aligns with a strategy seeking to capture value across different economic cycles. However, the emphasis on financial services and consumer cyclicals indicates a tilt towards sectors that may offer growth in a recovering economy.

Regions Info

  • North America
    54%
  • Latin America
    1%

Geographic allocation is heavily skewed towards North America (54%), with minimal exposure to international markets. This concentration enhances the portfolio's stability by focusing on the familiar U.S. market but limits potential gains from global diversification. Expanding geographic exposure could offer broader growth opportunities and risk mitigation.

Market capitalization Info

  • Micro-cap
    22%
  • Small-cap
    22%
  • Mega-cap
    5%
  • Large-cap
    4%
  • Mid-cap
    3%

The portfolio's market capitalization exposure is varied, with significant investments in micro and small-cap stocks. This indicates a strategy aiming to capitalize on the higher growth potential of smaller companies, albeit with increased volatility. The presence of mega and large-cap stocks, though minimal, adds a layer of stability and resilience to the portfolio.

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, this portfolio appears well-positioned for investors seeking a cautious approach, balancing potential returns with risk management. However, there may be opportunities to optimize further by adjusting allocations slightly to improve the risk-return profile without significantly increasing volatility. This optimization process should be revisited periodically to adapt to changing market conditions and investment objectives.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • iShares® 0-3 Month Treasury Bond ETF 4.30%
  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 2.81%

The portfolio's average dividend yield of 2.81% contributes to its total return, providing a steady income stream in addition to potential capital appreciation. This yield, particularly from the high-dividend Treasury ETF, supports the portfolio's cautious profile by offering returns even in flat or declining markets.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • iShares® 0-3 Month Treasury Bond ETF 0.07%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.15%

With a total expense ratio (TER) of 0.15%, the portfolio is cost-efficient, minimizing the drag on returns due to fees. This efficiency is crucial for a cautious strategy, where the objective is to preserve capital and achieve steady growth. Keeping costs low enhances net returns, a vital consideration for long-term investment success.

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.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey