A growth-focused portfolio with strong diversification and balanced geographic exposure

Report created on Mar 22, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio comprises seven ETFs, with a significant focus on small-cap value stocks and a moderate allocation to large-cap equities. The portfolio also includes a substantial bond component, enhancing stability. Compared to a typical growth benchmark, this portfolio is well-diversified, with a balanced mix of equity and fixed-income assets. Such a composition can help cushion against market volatility while providing exposure to growth opportunities. To further enhance diversification, consider regularly reviewing the asset allocation to ensure it aligns with your evolving risk tolerance and financial goals.

Growth Info

The portfolio has demonstrated a commendable historic performance, with a CAGR of 10.86%. This indicates strong growth over time, outperforming many benchmarks. However, it's important to note the portfolio's max drawdown of -33.49%, suggesting potential vulnerability during market downturns. Understanding the days that make up 90% of returns—just 14—highlights the importance of staying invested to capture gains. To mitigate risks, consider strategies like dollar-cost averaging to maintain consistent exposure without overreacting to market fluctuations.

Projection Info

Monte Carlo simulations predict a range of potential outcomes by analyzing historical data. With a median projection of 152.4% and an annualized return of 8.94%, the portfolio shows promise for future growth. However, the 5th percentile indicates a possible -28.2% decline, underscoring uncertainty. While simulations provide valuable insights, remember they can't predict exact future results. Regularly reviewing and adjusting your portfolio in response to changing market conditions can help manage risks and capitalize on opportunities.

Asset classes Info

  • Stocks
    89%
  • Bonds
    10%
  • Cash
    1%

The portfolio's allocation is heavily weighted towards stocks, with 89% in equities, 10% in bonds, and a small cash position. This equity-centric focus aligns well with growth objectives but may introduce higher volatility. Compared to typical benchmarks, the bond allocation helps provide some stability. To ensure the portfolio remains aligned with your risk tolerance, consider periodically rebalancing between asset classes, especially during significant market movements, to maintain your desired risk-return balance.

Sectors Info

  • Financials
    18%
  • Technology
    15%
  • Industrials
    12%
  • Consumer Discretionary
    12%
  • Energy
    7%
  • Basic Materials
    6%
  • Health Care
    6%
  • Consumer Staples
    5%
  • Telecommunications
    5%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation is well-diversified, with notable exposure to financial services, technology, and industrials. This balance aligns closely with common benchmarks, providing a buffer against sector-specific volatility. However, the portfolio's tech exposure could lead to increased volatility during interest rate changes. To maintain sector balance, consider monitoring economic trends and adjusting allocations in response to sector performance. This proactive approach can help you capitalize on emerging opportunities while managing risks effectively.

Regions Info

  • North America
    52%
  • Europe Developed
    10%
  • Asia Emerging
    9%
  • Asia Developed
    7%
  • Japan
    5%
  • Africa/Middle East
    3%
  • Latin America
    2%
  • Australasia
    2%
  • Europe Emerging
    1%

Geographic allocation is diverse, with 52% in North America, complemented by exposure to Europe, Asia, and other regions. This aligns well with global benchmarks, enhancing diversification. However, the portfolio's modest exposure to emerging markets could limit potential growth opportunities. To optimize geographic diversification, consider periodically reviewing regional allocations and adjusting them based on global economic trends. This approach can help you capture growth in emerging markets while managing regional risks.

Market capitalization Info

  • Mega-cap
    21%
  • Mid-cap
    20%
  • Small-cap
    20%
  • Large-cap
    16%
  • Micro-cap
    13%

The portfolio's market capitalization distribution includes a balanced mix of mega, medium, small, big, and micro-cap stocks. This diverse exposure enhances diversification and aligns well with growth objectives. However, the significant small-cap allocation may introduce higher volatility. To maintain a balanced risk-return profile, consider monitoring market trends and adjusting allocations based on your evolving risk tolerance. This proactive strategy can help you capture growth opportunities while managing potential risks associated with market capitalization shifts.

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 allocation can be optimized using the Efficient Frontier, which aims to achieve the best possible risk-return ratio with existing assets. By adjusting allocations within the portfolio, you can potentially enhance returns without increasing risk. It's important to note that optimization focuses on the current asset mix and may not account for future changes. To maintain an efficient portfolio, consider periodically reviewing and rebalancing allocations based on market conditions and your evolving financial goals.

Dividends Info

  • Avantis® International Small Cap Value ETF 4.00%
  • Avantis® U.S. Small Cap Value ETF 1.40%
  • WisdomTree Emerging Markets SmallCap Dividend Fund 2.70%
  • Vanguard Extended Duration Treasury Index Fund ETF Shares 4.40%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.50%
  • Vanguard S&P 500 ETF 1.30%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 3.00%
  • Weighted yield (per year) 2.34%

The portfolio's total dividend yield of 2.34% contributes to overall returns, providing a steady income stream. This yield aligns well with growth objectives, offering a balance between capital appreciation and income generation. To optimize dividend income, consider reinvesting dividends to enhance compounding effects. Additionally, regularly reviewing the dividend yield of individual holdings can help you maintain a balanced income strategy that supports your financial goals.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • WisdomTree Emerging Markets SmallCap Dividend Fund 0.58%
  • Vanguard Extended Duration Treasury Index Fund ETF Shares 0.06%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.18%

The portfolio's total expense ratio (TER) of 0.18% is impressively low, supporting better long-term performance. Low costs help maximize returns by minimizing the impact of fees. Compared to industry averages, this cost structure is highly competitive. To ensure continued cost efficiency, consider regularly reviewing expense ratios and seeking opportunities to further reduce costs, such as exploring lower-cost alternatives or negotiating fees with service providers.

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