Balanced and globally diversified portfolio with a focus on value and growth

Report created on Jul 11, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio exhibits a strategic mix of 70% in broad market ETFs and 30% in value-oriented small-cap ETFs across various geographies. This composition suggests a balanced approach, aiming for growth through market-wide exposure while seeking additional returns via value investing in smaller companies. The heavy allocation to ETFs ensures broad diversification across sectors and regions, which is a solid foundation for managing risk and capturing growth across different market cycles.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 10.06%, with a maximum drawdown of -25.30%. These figures indicate a robust performance, especially considering the drawdown, which reflects the portfolio's resilience during market downturns. The days contributing most to returns suggest that the portfolio's growth has been driven by significant market movements on relatively few days, underscoring the importance of staying invested over attempting to time the market.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of possible outcomes, show a median projected growth of 206.0% over the simulation period. While promising, it's crucial to remember that these projections are theoretical and depend on past market behavior, which is not a guaranteed indicator of future performance. This tool helps in understanding potential volatility and the range of outcomes but should not be the sole basis for investment decisions.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's nearly exclusive allocation to stocks (99%) positions it for higher growth potential, albeit with increased volatility compared to more conservative allocations that include bonds or other asset classes. This single-class focus is suitable for investors with a balanced risk profile and a long-term horizon, as it leverages the historical trend of equities outperforming other asset classes over extended periods.

Sectors Info

  • Financials
    20%
  • Technology
    18%
  • Industrials
    14%
  • Consumer Discretionary
    12%
  • Health Care
    8%
  • Basic Materials
    6%
  • Telecommunications
    6%
  • Energy
    6%
  • Consumer Staples
    6%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation is well-diversified, with financial services and technology leading the mix. This distribution is reflective of the broader market's composition and suggests a balanced exposure that mitigates sector-specific risks. However, the emphasis on technology and financial services, sectors known for their volatility and growth potential, aligns with the portfolio's overall growth-oriented strategy.

Regions Info

  • North America
    58%
  • Europe Developed
    16%
  • Japan
    8%
  • Asia Emerging
    7%
  • Asia Developed
    5%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographic allocation emphasizes North America (58%) and developed markets in Europe and Japan, with a smaller but significant exposure to emerging markets. This global spread enhances diversification, reducing the impact of regional downturns on the portfolio. However, the modest allocation to emerging markets, while reducing volatility, may also limit exposure to high-growth regions.

Market capitalization Info

  • Mega-cap
    31%
  • Large-cap
    23%
  • Mid-cap
    19%
  • Small-cap
    14%
  • Micro-cap
    9%

The market capitalization breakdown shows a thoughtful mix across mega, big, medium, small, and micro-cap stocks. This diversification supports the portfolio's balanced risk profile by combining the stability of large-cap companies with the growth potential of smaller caps. The presence of small and micro-cap stocks, particularly in the value ETFs, indicates a strategy aiming to capitalize on the higher return potential of undervalued companies.

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.

Considering the Efficient Frontier, the portfolio appears well-optimized for a balance between risk and return, based on its current asset allocation. Optimization in this context means the portfolio is positioned to achieve the best possible returns for the level of risk taken. However, continuous monitoring is necessary to adapt to changing market conditions and to maintain this balance over time.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.80%
  • Avantis® Emerging Markets Value ETF 4.00%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 2.16%

The dividend yields, ranging from 1.20% to 4.00%, contribute to the portfolio's total return, providing a steady income stream in addition to potential capital gains. The overall yield of 2.16% is respectable, balancing income generation with growth investment. This approach is particularly appealing for investors looking for a mix of income and growth in their investment strategy.

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 Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.12%

The portfolio's total expense ratio (TER) of 0.12% is impressively low, especially given its broad diversification and international exposure. Lower costs directly translate to higher net returns for investors over time, making this portfolio cost-effective for long-term growth. The emphasis on low-cost ETFs is a prudent strategy, ensuring that investment costs do not erode returns unnecessarily.

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