A growth tilted stock only portfolio with solid factor exposure and reasonable costs

Report created on Nov 13, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is made up of four stock ETFs: a broad large cap fund, two small cap value funds, and a dividend equity fund. That means 100% of the money is in stocks and there is no built in cash or bond cushion. For a growth oriented profile, this structure lines up well with a focus on long term appreciation, but it will move sharply with stock markets. Benchmark style portfolios at a similar risk level often include a slice of bonds, so this setup is a bit more aggressive. Anyone using this mix could think about whether they want to keep it pure stock or later blend in a stabilizing component outside this portfolio.

Growth Info

Historically, this mix has delivered a strong compound annual growth rate (CAGR) of 15.82%. CAGR is the “average yearly speed” over time, smoothing out the ups and downs like calculating a car’s average speed on a long trip. That kind of result would have turned 10,000 dollars into roughly 43,500 dollars over ten years, if repeated. The flip side is the max drawdown of about –38%, meaning a deep temporary loss during bad markets. That level of drop is normal for an all stock growth mix and is similar to past stock benchmarks. It’s important to remember that past returns are not a promise of what will happen next.

Projection Info

The Monte Carlo results are very strong overall. Monte Carlo simulation is basically running thousands of “what if” futures using patterns from historical data, then seeing how often things end well. Here, 986 out of 1,000 paths were positive, with a median (50th percentile) outcome of about 542% growth and an average simulated annual return of 16.68%. The low end (5th percentile) shows much more modest growth, which is a useful reality check. These projections give a wide range, highlighting both upside and risk. They rely on history and assumed volatility, though, so they can’t foresee new crises or regime shifts in markets.

Asset classes Info

  • Stocks
    100%

All of the allocation is in stocks, across just one asset class. That keeps things simple and gives maximum exposure to long term equity growth, which historically has beaten inflation over long horizons. However, it also means there is no built in shock absorber during market panics, unlike portfolios that mix in bonds, cash, or alternatives. Compared with common growth benchmarks, this is more aggressive and more concentrated in a single risk driver. The upside is strong long run potential; the downside is bigger short term swings. Anyone using this structure can manage overall risk by holding safer assets elsewhere or by adjusting contributions rather than tinkering too frequently.

Sectors Info

  • Technology
    19%
  • Financials
    15%
  • Consumer Discretionary
    13%
  • Industrials
    13%
  • Energy
    10%
  • Health Care
    8%
  • Consumer Staples
    7%
  • Basic Materials
    6%
  • Telecommunications
    6%
  • Utilities
    1%
  • Real Estate
    1%

Sector exposure is fairly broad: sizable weights in technology, financials, consumer cyclicals, industrials, and energy, with smaller slices in healthcare, defensive areas, and more niche sectors. This kind of spread across nine major groups is close to what broad stock benchmarks show and is a good sign of diversification. The tilt toward economically sensitive areas fits a growth oriented approach but can be bumpy in recessions or when interest rates move quickly. On the positive side, no single sector dominates the entire portfolio, which helps avoid being overly exposed to one particular story. Keeping an eye on any one sector creeping too high over time can help maintain balance.

Regions Info

  • North America
    82%
  • Europe Developed
    8%
  • Japan
    7%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Asia Developed
    1%

Geographically, the portfolio is heavily tilted toward North America at 82%, with smaller allocations to developed Europe, Japan, and a bit of other developed regions. That’s similar to many U.S. centered benchmarks and is a common home country tilt for American investors. The benefit is familiarity, strong market depth, and exposure to many global leaders already listed in North America. The tradeoff is relatively little direct exposure to emerging markets and some foreign economies that might grow faster over time. This geographic mix is well aligned with typical global standards, but someone wanting more global balance could consider whether to add more foreign exposure elsewhere in their overall plan.

Market capitalization Info

  • Large-cap
    26%
  • Mid-cap
    25%
  • Small-cap
    19%
  • Mega-cap
    18%
  • Micro-cap
    12%

The spread across company sizes is a real strength here: meaningful chunks in mega, big, mid, small, and even micro caps. Many standard benchmarks lean heavily into mega and large caps, so this allocation is more evenly distributed than usual. That multi size exposure can increase diversification and tap into different growth drivers, especially with the deliberate tilt toward small cap value. Smaller companies often swing more in price but can provide higher long term return potential. This balance gives a nice blend of stability from larger firms and dynamism from smaller ones. It also means short term volatility will likely be higher than a pure large cap index.

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.

On a risk return basis, this portfolio already sits in a strong position, but it could potentially be nudged closer to the Efficient Frontier. The Efficient Frontier is the set of mixes that give the best possible tradeoff between risk and return using the same building blocks. “Efficient” here simply means the most return for each unit of volatility, not necessarily the most diversification or income. Shifting weights slightly between the core large cap, small cap value, and dividend tilts might reduce swings without sacrificing expected growth, or modestly increase expected return for similar risk. Any such tweaks would be about fine tuning rather than fixing major issues, since the current setup is already robust.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.30%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Schwab U.S. Dividend Equity ETF 2.80%
  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 1.98%

The total yield of about 1.98% is modest but respectable for a growth leaning portfolio. Yield means the cash paid out each year as dividends relative to the portfolio size. The dividend oriented ETF and the international small cap value fund boost income here, while the broad market ETF contributes a lower but stable yield. Dividends can provide a useful stream of cash for reinvestment, helping to compound returns over time, especially when markets are flat. This income profile is well aligned with a total return approach: not purely income focused, but with enough dividends to be meaningful. Just remember that yields can fluctuate with company policies and market prices.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.15%

The overall cost, with a total expense ratio (TER) of about 0.15%, is impressively low for an actively tilted factor strategy. TER is the yearly fee charged by the funds as a percentage of your investment, similar to a small membership fee. Keeping costs down is one of the few things investors can reliably control, and shaving even a fraction of a percent can add up significantly over decades. This mix uses very low cost core exposure alongside slightly pricier niche funds, which is a sensible balance. From a cost standpoint, this structure strongly supports long term performance and compares favorably with many actively managed or higher fee options.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey