A growth-focused portfolio with strong US exposure and moderate international diversification

Report created on Jan 11, 2025

Risk profile Info

5/7
Growth
← Less risk More risk →

Diversification profile Info

4/5
Broadly Diversified
← Less diversification More diversification →

Positions

This portfolio is heavily weighted towards stocks, reflecting a growth-oriented strategy. With 40% in the Vanguard Total Stock Market Index Fund ETF and 25% in the Avantis® U.S. Small Cap Value ETF, it has a significant domestic focus. The remaining 35% is allocated to international equities, offering some global exposure. A comparison with typical growth benchmarks shows a higher stock allocation and minimal bonds. This composition suits those seeking capital appreciation but may lack the stability bonds provide. To enhance diversification, consider adding a small percentage of bonds or alternative assets, which can help mitigate risks during market downturns.

Growth Info

Historically, the portfolio has delivered a strong Compound Annual Growth Rate (CAGR) of 13.69%, with a maximum drawdown of -38.55%. This indicates robust growth potential but also significant volatility. Compared to typical growth benchmarks, the performance is commendable, but the drawdown suggests a higher risk level. Understanding that past performance does not guarantee future results is vital. To potentially reduce volatility, consider rebalancing periodically to maintain desired risk levels and capture gains.

Projection Info

The Monte Carlo simulation, using 1,000 simulations, projects potential outcomes by analyzing historical data. Results show a 67th percentile return of 589.14%, indicating a promising growth outlook. However, the 5th percentile return is only 4.83%, underscoring inherent risks. While simulations provide insights, remember they rely on historical trends, which may not predict future market conditions. Regularly reviewing and adjusting your portfolio based on changing market dynamics can help align with your growth objectives.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is predominantly allocated to stocks (99.33%), with negligible exposure to bonds and cash. This high stock allocation aligns with a growth strategy but limits diversification benefits that other asset classes provide. Compared to balanced benchmarks, this lack of asset class diversity could amplify volatility. To enhance risk management, consider incorporating a small allocation to bonds or other asset classes, which can provide stability and income, especially during market downturns.

Sectors Info

  • Financials
    20%
  • Technology
    18%
  • Industrials
    14%
  • Consumer Discretionary
    13%
  • Health Care
    8%
  • Energy
    7%
  • Basic Materials
    6%
  • Consumer Staples
    5%
  • Telecommunications
    5%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation shows a significant focus on Financial Services (19.57%) and Technology (17.60%). While these sectors can drive growth, they may also increase volatility, particularly during economic shifts or interest rate changes. The portfolio's sector composition aligns closely with common benchmarks, indicating a well-diversified sectoral approach. However, to further mitigate risks, ensure regular sector reviews and consider adjusting allocations to underrepresented sectors as market conditions change.

Regions Info

  • North America
    67%
  • Europe Developed
    14%
  • Japan
    7%
  • Asia Emerging
    4%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America (67.45%), with moderate exposure to Europe (13.88%) and Japan (7.05%). This provides a solid foundation in developed markets but limits exposure to emerging markets, which can offer higher growth potential. Compared to global benchmarks, the geographic allocation is less diversified. To enhance diversification and capture growth opportunities, consider increasing exposure to emerging markets, balancing risks with potential rewards.

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.

The portfolio can potentially be optimized using the Efficient Frontier, which seeks the best risk-return ratio. By adjusting asset allocations, you may achieve a more efficient portfolio without altering diversification goals. This optimization focuses on maximizing returns for a given level of risk, enhancing overall performance. Regularly reassessing your portfolio's position on the Efficient Frontier can help ensure it remains aligned with your risk tolerance and growth objectives.

Dividends Info

  • Avantis® International Small Cap Value ETF 4.40%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 3.40%
  • Weighted yield (per year) 2.21%

The portfolio's dividend yield is 2.21%, with the Avantis® International Small Cap Value ETF offering the highest yield at 4.4%. Dividends provide a steady income stream, which can be reinvested to enhance growth. For growth-focused investors, a moderate dividend yield can complement capital appreciation. To optimize income, consider periodically reviewing dividend-paying assets, ensuring they align with your overall growth strategy and risk tolerance.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.13%

The portfolio's Total Expense Ratio (TER) is 0.13%, which is impressively low. This cost efficiency supports better long-term returns by minimizing the impact of fees on overall performance. Compared to industry averages, the portfolio's costs are competitive, enhancing its appeal to cost-conscious investors. To maintain cost-effectiveness, regularly review fund expenses and consider replacing higher-cost assets with lower-cost alternatives, ensuring alignment with your investment objectives.

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