A balanced and highly diversified portfolio with strategic exposure across market caps and regions

Report created on Nov 9, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio's composition showcases a strategic blend of U.S. and international equities, emphasizing small-cap and value-oriented ETFs. With a quarter of the portfolio in Avantis® U.S. Small Cap Value ETF and significant positions in both U.S. and international markets, it reflects a well-thought-out approach to capturing growth opportunities while attempting to manage risk through diversification. The presence of both momentum and quality factor ETFs suggests an attempt to balance cyclical and defensive strategies.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 11.10%, with a maximum drawdown of -20.95%. This performance, characterized by a relatively high return and moderate drawdown, indicates resilience during market volatility. The days contributing most to returns highlight the portfolio's ability to capitalize on short-term market movements effectively. However, it's important to remember that past performance is not indicative of future results.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median scenario suggesting significant growth potential. This method, while useful for understanding potential volatility and outcomes, relies on historical data and cannot predict future market conditions accurately. Investors should consider these projections as one of many tools in assessing potential risk and return.

Asset classes Info

  • Stocks
    95%
  • Bonds
    3%
  • Other
    1%

The portfolio's heavy allocation towards stocks (95%) aligns with its balanced risk profile, aiming for growth while accepting moderate levels of volatility. The minimal presence of bonds and other asset classes serves to slightly temper the portfolio's risk, though the primary focus clearly remains on equities. This asset mix is suitable for investors with a medium to long-term horizon, who can withstand periods of market fluctuations.

Sectors Info

  • Financials
    16%
  • Technology
    15%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Energy
    6%
  • Basic Materials
    5%
  • Telecommunications
    5%
  • Health Care
    4%
  • Consumer Staples
    3%
  • Utilities
    1%
  • Real Estate
    1%

Sector allocations reveal a diversified approach, with significant investments in financial services and technology, followed by industrials and consumer cyclicals. This sector spread indicates a balance between growth-oriented and value sectors, potentially mitigating sector-specific risks. However, the concentration in high-growth sectors like technology may increase sensitivity to market swings related to interest rate changes or economic cycles.

Regions Info

  • North America
    59%
  • Europe Developed
    12%
  • Japan
    7%
  • Asia Emerging
    5%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic distribution underscores a strong bias towards North American equities, complemented by diversified international exposure. While the portfolio benefits from the stability and growth potential of developed markets, its allocations to emerging markets aim to capture higher growth rates. This geographic diversification helps mitigate region-specific risks and capitalizes on global economic trends.

Market capitalization Info

  • Mega-cap
    22%
  • Large-cap
    22%
  • Mid-cap
    19%
  • Small-cap
    17%
  • Micro-cap
    14%

The market capitalization breakdown shows a balanced approach, with allocations spread across mega to micro-cap stocks. This diversity supports risk management by not overly concentrating in any single cap-size, which can vary in performance across economic cycles. Small and micro-cap investments, while riskier, offer potential for higher returns, aligning with the portfolio's growth objectives.

Redundant positions Info

  • Avantis® International Small Cap Value ETF
    Avantis® International Equity ETF
    High correlation
  • iShares MSCI USA Quality Factor ETF
    Dimensional U.S. Equity ETF
    High correlation

The analysis identifies highly correlated assets within the portfolio, particularly among international equity ETFs and between the quality factor and U.S. equity ETFs. These correlations suggest redundancy, as these investments tend to move in tandem, reducing the diversification benefit. Reducing overlap could enhance the portfolio's efficiency by lowering risk without sacrificing expected 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.

Click on the colored dots to explore allocations.

The portfolio's current setup, while diversified, has room for optimization. The presence of overlapping assets suggests that simplifying the portfolio by reducing highly correlated investments could improve efficiency. Achieving an optimal risk-return balance, as suggested by the Efficient Frontier analysis, could potentially increase expected returns to 10.57% without taking on additional risk. This optimization underscores the importance of regularly reviewing and adjusting the portfolio to maintain alignment with investment goals and market conditions.

Dividends Info

  • Avantis® International Equity ETF 2.60%
  • Avantis® International Small Cap Value ETF 3.50%
  • Avantis® Emerging Markets Value ETF 3.70%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • iMGP DBi Managed Futures Strategy ETF 4.70%
  • Dimensional U.S. Equity ETF 1.00%
  • iShares MSCI USA Momentum Factor ETF 0.90%
  • iShares MSCI USA Quality Factor ETF 0.90%
  • Weighted yield (per year) 2.18%

The portfolio's average dividend yield of 2.18% contributes to its total return, offering a blend of income and growth. While not the primary focus, dividends provide a steady income stream, which can be particularly beneficial during market downturns. The varying yields across ETFs reflect the diverse investment strategies and geographic exposures within the portfolio.

Ongoing product costs Info

  • Avantis® International Equity ETF 0.23%
  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • iMGP DBi Managed Futures Strategy ETF 0.85%
  • Dimensional U.S. Equity ETF 0.09%
  • iShares MSCI USA Momentum Factor ETF 0.15%
  • iShares MSCI USA Quality Factor ETF 0.15%
  • Weighted costs total (per year) 0.27%

With a total expense ratio (TER) of 0.27%, the portfolio is cost-efficient, minimizing the drag on returns due to fees. This low cost structure is commendable, as it allows a greater portion of the investment returns to compound over time. Keeping costs low is crucial for enhancing long-term portfolio performance.

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