A growth focused stock portfolio with strong diversification and low ongoing costs for long term investors

Report created on Aug 12, 2024

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 a pure stock mix, with about half in a global total market fund and the rest tilting toward US dividends growth and small cap value. That structure combines a broad “own the world” base with targeted tilts toward specific return drivers. This is relevant because a core plus tilt setup often balances simplicity with the chance of modest outperformance versus broad markets. The current blend is already well aligned with common growth benchmarks. If anything, the main tweak to think about over time is whether the size of the US tilts matches the desired balance between global exposure and home country focus.

Growth Info

Historically, a 10,000 dollar investment growing at a 15.64% CAGR (compound annual growth rate) would have roughly quadrupled over a decade. CAGR is like your average speed on a road trip, smoothing out bumps along the way. This level of return is very strong and comfortably above typical broad equity benchmarks, though part of that may be due to a very favorable decade for US and growth stocks. The max drawdown of about -35% shows this portfolio can still drop sharply in bad markets. It suits someone who can sit through deep but temporary setbacks without reacting emotionally.

Projection Info

The Monte Carlo analysis uses 1,000 simulations to project future values by remixing historical return and volatility patterns in many random paths. Think of it as running thousands of alternate histories based on past behavior. A 5th percentile outcome around 68% growth and a median outcome above 600% suggest a very wide range of possibilities, which is normal for an all‑stock portfolio. The high average simulated return is encouraging but not a promise; markets rarely repeat the past exactly. This tool is best used as a rough risk compass, not a precise forecast for planning specific dollar outcomes.

Asset classes Info

  • Stocks
    99%

The portfolio is 99% in stocks, with essentially no bonds or cash as long‑term holdings. That lines up cleanly with a growth‑oriented profile where maximizing long‑term return matters more than smoothing short‑term swings. Pure equity exposure is powerful for building wealth over decades but can be uncomfortable in sharp downturns, because there is no smoother asset class acting as a shock absorber. For many investors, this structure is well suited to long horizons and strong risk tolerance. Anyone needing money within a few years might consider holding their near‑term needs separately in safer, more stable vehicles.

Sectors Info

  • Technology
    25%
  • Financials
    15%
  • Consumer Discretionary
    12%
  • Industrials
    10%
  • Health Care
    10%
  • Telecommunications
    8%
  • Energy
    8%
  • Consumer Staples
    7%
  • Basic Materials
    3%
  • Utilities
    1%
  • Real Estate
    1%

Sector exposure is broadly diversified: technology leads at about a quarter of the portfolio, with healthy allocations to financials, consumer areas, industrials, healthcare, and others. This is very similar to common global and US benchmarks, which is a strong sign of balance. A tech tilt does mean more sensitivity to growth expectations and interest rate moves, as growth companies’ values can swing more when rates change. Still, having all major sectors represented helps avoid relying on a single theme. Periodically checking whether any one area has grown far beyond benchmark weights can help keep risk from creeping up unnoticed.

Regions Info

  • North America
    82%
  • Europe Developed
    7%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, about 82% of the exposure is in North America, with relatively small allocations to Europe, Japan, and the rest of the world. This is a classic “home bias” tilt many US investors have, especially after a long stretch where US stocks outperformed. The upside is familiarity and alignment with the local economy; the downside is more vulnerability if US markets go through a long weaker patch. Since the core global fund already spreads risk worldwide, the extra US heavy tilts make this portfolio very US‑centric overall. Over time, rebalancing toward more non‑US exposure could modestly reduce concentration risk.

Market capitalization Info

  • Mega-cap
    32%
  • Large-cap
    30%
  • Mid-cap
    17%
  • Small-cap
    11%
  • Micro-cap
    9%

The market cap mix is well spread: roughly one‑third mega caps, another third large caps, plus meaningful exposure down the size spectrum to mid, small, and even micro companies. This is a strength because smaller companies often behave differently from giants, adding another layer of diversification. They can offer higher long‑term return potential but with bumpier rides and larger short‑term swings. The dedicated small cap value fund amplifies this effect. The blend here is more diversified by size than a typical large‑cap dominated benchmark, which is a positive. Just keep in mind that small caps can underperform for long stretches.

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.

On a risk‑return chart, this portfolio likely sits close to the Efficient Frontier for an all‑equity mix. The Efficient Frontier is a curve showing the best possible trade‑off between risk and return using the current building blocks, without adding new types of assets. Efficiency here means getting the most expected return for a given level of volatility, not maximizing diversification in every dimension. Small shifts between global, dividend, growth, and small cap value weights could potentially nudge the position slightly closer to that frontier. Any such changes would mostly be fine‑tuning rather than fixing a major inefficiency.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 1.82%

The blended dividend yield of about 1.82% comes from combining a high‑yield dividend ETF with more growth‑oriented and broad market funds. Dividends are cash payments companies make to shareholders, and they can form a steady portion of total return, especially when reinvested. This setup strikes a nice middle ground: the dedicated dividend fund boosts income, while the growth and global funds keep the focus on capital appreciation. For someone mainly chasing long‑term growth rather than current income, this yield is perfectly reasonable. Reinvesting dividends automatically is likely the most effective approach at this risk level and time horizon.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.09%

With a total expense ratio around 0.09%, the ongoing costs are impressively low. TER (total expense ratio) is like the annual “membership fee” you pay to hold a fund, and lower fees leave more of the returns in your pocket. This cost structure is clearly aligned with best practices and compares very favorably to many actively managed or higher‑fee options. Over decades, even small fee differences can compound into big dollar amounts. There is no obvious pressure here to hunt for cheaper alternatives; the focus can stay on keeping the allocation aligned with goals rather than worrying about cost drag.

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