Balanced and broadly diversified portfolio with a global focus and strategic sector allocation

Report created on Jul 28, 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 showcases a strategic blend of global equities, emphasizing diversification across both sectors and geographies. With 50% allocated to a total world stock index, it underscores a commitment to capturing global market returns. The inclusion of specialized ETFs focused on momentum, growth, and value strategies within the U.S. and international markets further refines its approach. This mix is designed to harness various market conditions, balancing between aggressive growth and value-driven stability. The portfolio's broad diversification is evident in its asset class concentration, heavily skewed towards stocks, which suits its balanced risk profile.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.38%, with a maximum drawdown of -24.74%. This performance reflects a robust resilience and growth potential, considering the inherent market volatilities. The days contributing to 90% of returns highlight the portfolio's ability to capitalize on significant market movements. Comparing these metrics against benchmarks could provide further insights into its relative performance, emphasizing the importance of understanding market timing and its impact on long-term growth.

Projection Info

Utilizing Monte Carlo simulations, the portfolio's forward projection offers a wide range of potential outcomes, reinforcing the uncertainty inherent in investing. With a median projected increase of 404.1%, the analysis suggests substantial growth potential. However, the broad spread between the 5th and 67th percentiles underscores the risk of volatility. This projection method, while insightful, relies on historical data, meaning past performance is not indicative of future results. It's crucial for investors to consider this alongside other factors like economic conditions and personal risk tolerance.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily weighted towards stocks, with a small cash reserve. This composition aligns with its balanced risk classification, aiming for growth while maintaining some liquidity. The absence of bonds or other asset classes might limit risk diversification, especially during stock market downturns. Considering the addition of bonds or alternative assets could enhance the portfolio's resilience against volatility while potentially dampening overall returns.

Sectors Info

  • Technology
    21%
  • Financials
    20%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Telecommunications
    8%
  • Health Care
    8%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    4%
  • Utilities
    3%
  • Real Estate
    2%

Sector allocation is well-diversified, with significant positions in technology and financial services, followed by industrials and consumer cyclicals. This distribution reflects a balance between high-growth potential sectors and those offering stability. However, the heavy weighting in technology and financial services could expose the portfolio to sector-specific risks. Diversifying further into underrepresented sectors like utilities and real estate might provide additional stability during market fluctuations.

Regions Info

  • North America
    65%
  • Europe Developed
    16%
  • Japan
    6%
  • Asia Emerging
    5%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic allocation emphasizes North American and developed European markets, with smaller exposures to emerging markets and Asia. This distribution suggests a conservative approach to international investing, focusing on more stable, developed economies. However, the limited exposure to emerging markets and specific regions like Latin America and Africa/Middle East might mean missing out on potential high-growth opportunities. Increasing allocations to these areas could enhance returns but also increase risk.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    33%
  • Mid-cap
    19%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's market capitalization exposure leans towards mega and big cap stocks, indicative of a preference for established, less volatile companies. While this supports stability, the relatively smaller allocation to small and micro-cap stocks limits potential for outsized gains these segments can offer. Considering a slight increase in exposure to smaller cap stocks could introduce more growth opportunities, albeit with higher risk.

Redundant positions Info

  • Avantis® International Small Cap Value ETF
    Dimensional International Value ETF
    High correlation

The observed high correlation between certain international value ETFs suggests redundancy, potentially limiting diversification benefits. This redundancy could amplify risks during market downturns in specific sectors or regions these ETFs are exposed to. Reallocating funds from highly correlated assets to less correlated ones could improve the portfolio's risk-adjusted returns by enhancing diversification.

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 asset allocation suggests room for optimization, particularly by addressing the overlap in highly correlated assets. Utilizing the Efficient Frontier could identify an allocation that offers the highest expected return for a given level of risk. This optimization, while theoretical, can guide adjustments to improve the portfolio's risk-return profile. It's important to remember that such optimizations are based on historical data and should be one of many tools used in decision-making.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.70%
  • Avantis® Emerging Markets Value ETF 3.90%
  • Dimensional International Value ETF 3.30%
  • Invesco S&P International Developed Momentum ETF 2.00%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Russell 1000 Growth Index Fund ETF Shares 0.50%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Vanguard Value Index Fund ETF Shares 2.10%
  • Weighted yield (per year) 1.79%

The portfolio's dividend yield strategy, with an average yield of 1.79%, contributes to its total return, offering a balance between growth and income. The variation in yields across ETFs highlights a strategic allocation that leverages both high-growth, low-dividend assets and more stable, income-generating investments. Reviewing dividend performance in conjunction with growth objectives can ensure that the portfolio maintains an optimal balance for long-term wealth accumulation.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Value ETF 0.36%
  • Dimensional International Value ETF 0.27%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Russell 1000 Growth Index Fund ETF Shares 0.08%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Vanguard Value Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.12%

With an average Total Expense Ratio (TER) of 0.12%, the portfolio is efficiently managed, minimizing costs to maximize investor returns. This low-cost approach is particularly beneficial over the long term, as even small differences in fees can significantly impact net returns. Continuously monitoring and comparing costs against performance and similar investment options remains crucial to ensuring cost efficiency without compromising on quality.

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