A growth-oriented portfolio with a diverse mix of ETFs and a unique inclusion of Bitcoin

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

Growth Investors

This portfolio suits an investor seeking high growth with a moderate to high risk tolerance and a long-term investment horizon. It's designed for individuals comfortable with market volatility and looking for substantial capital appreciation. The inclusion of a wide range of ETFs, along with a significant position in cryptocurrency, indicates a preference for innovative and potentially high-reward investment strategies. This investor likely has a deep understanding of market dynamics and is prepared to weather short-term fluctuations for long-term gains.

Positions

  • Avantis U.S. Quality ETF
    AVUQ
    20.00%
  • Avantis® International Small Cap Value ETF
    AVDV - US0250728021
    15.00%
  • Avantis® U.S. Small Cap Value ETF
    AVUV - US0250728773
    15.00%
  • Invesco S&P International Developed Momentum ETF
    IDMO - US46138E2220
    15.00%
  • Invesco S&P 500® Momentum ETF
    SPMO - US46138E3392
    15.00%
  • Avantis® Emerging Markets Value ETF
    AVES - US0250723725
    10.00%
  • Fidelity Wise Origin Bitcoin Trust
    FBTC - US3159481098
    10.00%

This portfolio exhibits a strong growth orientation with a substantial allocation towards ETFs that focus on quality, value, and momentum strategies across various geographies, including the U.S., international developed, and emerging markets. The inclusion of the Fidelity Wise Origin Bitcoin Trust adds an unconventional layer of diversification, potentially increasing the portfolio's risk and return profile. The asset allocation leans heavily towards stocks (90%), with a minor yet significant allocation to cryptocurrencies (10%), indicating a higher risk tolerance and a pursuit for aggressive growth.

Warning Historical data is limited for this portfolio, which reduces the confidence in the calculated values.

Growth Info

Historically, this portfolio has demonstrated a remarkable Compound Annual Growth Rate (CAGR) of 32.03%, with a maximum drawdown of -12.80%. These figures suggest a high level of volatility but also the potential for substantial rewards. The days contributing to 90% of the returns being so few highlight the portfolio's reliance on significant, albeit infrequent, gains. Such performance, while impressive, underscores the importance of risk tolerance and the ability to withstand short-term fluctuations for long-term growth.

Warning Due to limited historical data, this may show extreme values that are not realistic.

Projection Info

The Monte Carlo simulation, which projects future performance based on historical data, suggests a wide range of outcomes but with a generally positive outlook. The median projection indicates a significant increase in portfolio value, reinforcing the growth potential of this investment strategy. However, it's crucial to remember that these projections are theoretical and depend on historical market behavior, which may not predict future movements accurately.

Asset classes Info

  • Stocks
    90%
  • Other
    10%
  • Cash
    0%
  • No data
    0%
  • Bonds
    0%

The portfolio's asset class distribution, with a dominant focus on stocks and a notable allocation to cryptocurrencies, aligns with its growth profile. Stocks, particularly from sectors and geographies with higher expected returns, can offer substantial growth opportunities. The inclusion of cryptocurrencies, while riskier, can potentially enhance returns but also adds volatility. This asset mix is suitable for investors with a higher risk tolerance and a long-term investment horizon.

Sectors Info

  • Financials
    21%
  • Technology
    18%
  • Industrials
    13%
  • Consumer Discretionary
    11%
  • Telecommunications
    7%
  • Basic Materials
    6%
  • Energy
    5%
  • Consumer Staples
    4%
  • Health Care
    2%
  • Utilities
    2%
  • Real Estate
    1%

Sector allocations within this portfolio reveal a strategic emphasis on financial services, technology, and industrials, which are sectors often associated with growth and innovation. However, the relatively lower allocation to defensive sectors like healthcare and utilities may increase the portfolio's sensitivity to market downturns. Balancing growth-oriented sectors with more stable, defensive sectors could help mitigate risk without significantly compromising potential returns.

Regions Info

  • North America
    54%
  • Europe Developed
    14%
  • Japan
    6%
  • Asia Emerging
    5%
  • Asia Developed
    5%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%
  • Europe Emerging
    0%

Geographic diversification is well addressed, with over half of the portfolio invested in North America and significant exposures to Europe, Asia, and emerging markets. This global spread can help mitigate the impact of regional downturns and capitalize on growth opportunities worldwide. However, the relatively lower exposure to emerging markets, given their growth potential, could be an area for increased allocation.

Market capitalization Info

  • Mega-cap
    28%
  • Large-cap
    20%
  • Mid-cap
    17%
  • Small-cap
    14%
  • Micro-cap
    9%

The market capitalization breakdown shows a balanced approach, with investments spread across mega, big, medium, small, and micro-cap companies. This diversity helps in risk management, as different market caps react differently to market changes. However, the emphasis on smaller caps, known for their growth potential and higher volatility, aligns with the portfolio's overall growth strategy.

Redundant positions Info

  • Invesco S&P 500® Momentum ETF
    Avantis U.S. Quality ETF
    High correlation

The analysis identifies a high correlation between certain ETFs, particularly those focused on the U.S. market. This redundancy suggests that despite the portfolio's diversified appearance, it may not be as effectively diversified as intended. Reducing overlap by reallocating from highly correlated assets to those with lower correlations can enhance the portfolio's diversification and potentially its risk-adjusted returns.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.30%
  • Avantis® Emerging Markets Value ETF 3.70%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Invesco S&P International Developed Momentum ETF 1.70%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Avantis U.S. Quality ETF 0.20%
  • Weighted yield (per year) 1.49%

The overall dividend yield of the portfolio stands at 1.49%, which is relatively low. This is consistent with the portfolio's growth focus, as investments are likely chosen for their potential for capital appreciation rather than for generating income. For investors seeking growth, reinvesting dividends rather than relying on them for income can be a strategy to compound returns over time.

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%
  • Fidelity Wise Origin Bitcoin Trust 0.25%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.21%

With a Total Expense Ratio (TER) averaging 0.21%, the portfolio is efficiently managed in terms of costs. Lower costs can significantly impact long-term growth, as less of the investment return is consumed by fees. This efficiency is commendable and contributes positively to the portfolio's overall attractiveness by enhancing net returns.

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.

The Efficient Frontier analysis suggests that the portfolio could achieve a higher expected return of 42.73% at a similar risk level through optimization. This involves addressing the identified overlap in highly correlated assets. By reallocating these funds into less correlated, potentially more diversified investments, the portfolio could enhance its risk-return profile without necessarily increasing its overall risk.

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