This portfolio has only about 11 months 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.

Cautious and Highly Diversified Portfolio with Strong Historical Performance and Balanced Global Allocation

Report created on Dec 5, 2024

Risk profile Info

3/7
Cautious
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is mainly composed of ETFs, with a significant allocation in Vanguard Total Stock Market Index Fund ETF Shares at 58%. This is complemented by international exposure through the Vanguard Total International Stock Index Fund ETF Shares at 20%. Smaller allocations to Avantis ETFs and a minimal 2% in iShares Bitcoin Trust add variety. This composition suggests a cautious approach with an emphasis on diversification. The presence of both U.S. and international ETFs indicates a strategy to capture global market growth while maintaining a solid base in U.S. equities.

Growth Info

Historically, the portfolio has performed exceptionally well, boasting a CAGR of 25.11% with a max drawdown of -8.67%. Such impressive growth implies that the portfolio has capitalized on favorable market conditions, while the drawdown suggests a level of resilience during downturns. This performance indicates a well-balanced risk-return profile, which is ideal for investors seeking growth without excessive volatility. Maintaining this performance would require consistent monitoring and adjustments to align with changing market dynamics.

Projection Info

Using a Monte Carlo simulation, which runs numerous scenarios to predict future performance, the portfolio shows promising potential. With a 50th percentile end value of 5,978.02% and a 67th percentile of 10,388.03%, the portfolio is expected to deliver substantial returns. The annualized return from all simulations is 38.4%, highlighting the portfolio's strong growth potential. However, it's important to remember that these projections are hypothetical and should be interpreted with caution, as actual market conditions can vary significantly.

Asset classes Info

  • Stocks
    97%
  • Other
    2%

The portfolio is heavily weighted towards stocks, comprising over 97% of the total allocation. This indicates a strong focus on equity markets, which generally offer higher returns but come with increased volatility. The minimal exposure to other asset classes, such as bonds or cash, suggests a preference for growth over income or stability. To further diversify and potentially reduce risk, consider allocating more into non-equity asset classes, which can provide balance and mitigate market fluctuations.

Sectors Info

  • Technology
    22%
  • Financials
    17%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Energy
    5%
  • Basic Materials
    5%
  • Real Estate
    3%
  • Utilities
    2%

The sector allocation is diverse, with significant investments in Technology (21.8%), Financial Services (17.1%), and Industrials (11.9%). This spread across multiple sectors helps mitigate sector-specific risks and capitalizes on various economic drivers. However, a concentrated focus on Technology may increase vulnerability to sector downturns. To enhance resilience, consider rebalancing towards underrepresented sectors, ensuring a more even distribution that aligns with economic cycles and reduces dependency on any single sector.

Regions Info

  • North America
    70%
  • Europe Developed
    10%
  • Asia Emerging
    6%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is predominantly invested in North America (69.7%), with additional exposure to Europe Developed (10%) and Asia Emerging (6%). This allocation reflects a strong bias towards the U.S. market, which can be beneficial during periods of U.S. economic growth. However, it also exposes the portfolio to regional risks. To achieve a more balanced global exposure, consider increasing allocations to other regions, such as Europe and Asia, which can provide diversification benefits and capture growth opportunities in emerging markets.

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 is already optimized for a cautious investor with a balanced risk-return profile. However, there is room to adjust along the efficient frontier to achieve a more conservative or riskier stance. For a more conservative approach, consider increasing allocations to lower-risk asset classes like bonds. Conversely, to pursue higher returns, allocate more towards equities with higher growth potential. Before making changes, ensure that any adjustments align with the overall investment strategy and risk tolerance, maintaining a diversified and resilient portfolio.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.00%
  • Avantis® Emerging Markets Value ETF 3.70%
  • Avantis® U.S. Small Cap Value ETF 1.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.76%

The portfolio offers a total dividend yield of 1.76%, with the highest contributions from Avantis Emerging Markets Value ETF at 3.7% and Avantis International Small Cap Value ETF at 3.0%. This yield provides a modest income stream that can supplement capital appreciation. While dividends are a valuable component of total returns, the focus remains on growth. For investors seeking higher income, consider increasing allocations to dividend-focused investments, balancing the need for income with growth objectives.

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%
  • iShares Bitcoin Trust 0.12%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.10%

The portfolio's cost structure is efficient, with a Total Expense Ratio (TER) of 0.1%. This low cost is primarily driven by the Vanguard ETFs, which are known for their cost-effectiveness. Keeping expenses low is crucial for maximizing net returns, as high fees can erode gains over time. The minimal costs associated with this portfolio ensure that more of the returns are retained by the investor. Continuously monitor and compare expense ratios to ensure cost efficiency remains a priority.

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