This portfolio has only about 1.7 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

A balanced and broadly diversified portfolio leaning towards large-cap equities with a global reach

Report created on Aug 11, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is structured with a heavy emphasis on equities, particularly large-cap stocks, as evidenced by the 60% allocation to the Vanguard S&P 500 ETF. The diversification is further enhanced by international exposure through the Vanguard Total International Stock Index Fund ETF Shares and niche allocations to small-cap and emerging markets via Avantis® ETFs. This composition aligns with a balanced risk profile, aiming to capture growth from different global markets while attempting to mitigate risk through diversification across geographies and market capitalizations.

Growth Info

Historically, this portfolio has shown a strong Compound Annual Growth Rate (CAGR) of 23.44%, with a maximum drawdown of -16.98%. The days contributing most to returns indicate significant gains were made on relatively few days, highlighting the importance of staying invested over the long term to capture these spikes. When compared to benchmarks, this performance suggests the portfolio has been well-positioned to capitalize on market upswings while maintaining a balanced risk approach.

Projection Info

Monte Carlo simulations, which forecast potential future performance based on historical data, show a wide range of outcomes but are predominantly positive, with all simulations yielding gains. This underscores the portfolio's potential for substantial growth while also highlighting the inherent uncertainties in predicting market movements. Investors should interpret these projections with caution, as past performance is not indicative of future results.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset class distribution is heavily skewed towards stocks (99%), with a minor cash holding (1%). This allocation is typical for growth-oriented investors seeking higher returns, albeit with increased volatility. The absence of bonds or alternative investments may limit the portfolio's ability to hedge against stock market downturns, suggesting a review of risk tolerance and investment goals could be beneficial for ensuring alignment.

Sectors Info

  • Technology
    24%
  • Financials
    18%
  • Consumer Discretionary
    12%
  • Industrials
    12%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Energy
    5%
  • Basic Materials
    5%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation is diversified, with technology and financial services making up the largest portions. This sector composition is reflective of the broader market trends, where these sectors have shown significant growth. However, the concentration in technology could expose the portfolio to sector-specific risks, such as regulatory changes or shifts in consumer behavior. A more balanced sector distribution could help mitigate these risks.

Regions Info

  • North America
    72%
  • Europe Developed
    11%
  • Japan
    5%
  • Asia Emerging
    5%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America (72%), with meaningful allocations to developed Europe and emerging markets. This distribution provides a good balance between the stability of developed markets and the growth potential of emerging markets. However, investors may consider increasing exposure to underrepresented regions to enhance global diversification and capture growth opportunities outside of the heavily weighted regions.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    28%
  • Mid-cap
    20%
  • Small-cap
    8%
  • Micro-cap
    4%

The market capitalization breakdown shows a preference for mega and big-cap stocks, which are typically less volatile than smaller companies. This aligns with the portfolio's balanced risk profile. However, the allocations to small and micro-cap stocks, while modest, introduce higher growth potential with corresponding risks. A periodic review of this distribution can ensure it remains in line with the investor's risk tolerance and market outlook.

Redundant positions Info

  • Avantis® U.S. Small Cap Value ETF
    American Century ETF Trust
    High correlation

The high correlation between the Avantis® U.S. Small Cap Value ETF and the American Century ETF Trust suggests redundancy in the portfolio, limiting diversification benefits. Identifying and reducing overlapping holdings can enhance the portfolio's efficiency by reducing unnecessary exposure to similar risk factors.

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.

Optimizing the portfolio using the Efficient Frontier could improve the risk-return profile. This involves adjusting asset allocations to achieve the highest possible return for a given level of risk. The current emphasis on correlated assets suggests room for improvement by diversifying into less correlated investments, thereby potentially enhancing returns without increasing overall portfolio risk.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.70%
  • Avantis® Emerging Markets Value ETF 3.90%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • American Century ETF Trust 1.30%
  • Weighted yield (per year) 1.81%

The portfolio's dividend yield contributes to its total return, providing a steady income stream in addition to capital appreciation. The varied yields across the ETFs reflect the different income potentials and growth prospects within the portfolio. Reinvesting these dividends can compound growth over time, enhancing long-term returns.

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%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • American Century ETF Trust 0.20%
  • Weighted costs total (per year) 0.09%

Portfolio costs are impressively low, averaging a Total Expense Ratio (TER) of 0.09%, which is beneficial for long-term growth as lower costs translate to higher net returns. The low-cost structure is primarily due to the inclusion of Vanguard ETFs, known for their efficiency and affordability. Continuously monitoring and minimizing investment costs remains a key strategy for optimizing portfolio performance.

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