Balanced and highly diversified portfolio with a strategic focus on small-cap and value ETFs

Report created on Sep 14, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio showcases a strategic allocation across various asset classes and geographies, with a notable emphasis on small-cap and value ETFs. It includes a blend of U.S. and international stocks, emerging markets, and bonds, represented through ETFs. The allocation is 25% in U.S. small-cap value, 25% in S&P 500, 20% in developed markets, 10% in international small-cap value, 10% in emerging markets small-cap dividends, and 10% in bonds. This composition suggests a balanced approach, aiming to capture growth through small-cap value stocks while maintaining stability through large-cap and bond investments.

Growth Info

Historically, this portfolio has demonstrated strong performance with a Compound Annual Growth Rate (CAGR) of 17.38% and a maximum drawdown of -15.87%. These figures indicate a robust growth trajectory over time, albeit with periods of significant value fluctuations. The days contributing most to returns highlight the portfolio's potential for significant gains in short periods, underscoring the importance of staying invested through market cycles for optimal growth.

Projection Info

Monte Carlo simulations, which forecast potential future performance by analyzing historical data, suggest a wide range of outcomes for this portfolio. With all simulations showing positive returns and a median projected growth of 887.8%, the analysis supports the portfolio's strong growth potential. However, it's important to remember that these projections are not guarantees and should be used as one of many tools in evaluating investment strategies.

Asset classes Info

  • Stocks
    90%
  • Bonds
    18%

The portfolio's asset class distribution is heavily weighted towards stocks (90%), with a smaller allocation to bonds (10%). This stock-heavy focus aligns with the portfolio's balanced risk profile, aiming for growth while using bonds to mitigate volatility. The absence of alternative asset classes might limit diversification benefits; however, the current allocation is strategically positioned for the portfolio's growth objectives.

Sectors Info

  • Financials
    18%
  • Technology
    14%
  • Industrials
    14%
  • Consumer Discretionary
    12%
  • Energy
    7%
  • Basic Materials
    6%
  • Health Care
    6%
  • Consumer Staples
    5%
  • Telecommunications
    5%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation spans across financial services, technology, industrials, and consumer cyclicals, among others, with no single sector dominating. This sectoral diversity helps in spreading risk and capturing growth across different market cycles. However, the concentration in sectors like financial services and technology, which are known for volatility, suggests a need for periodic review to ensure alignment with risk tolerance.

Regions Info

  • North America
    53%
  • Europe Developed
    14%
  • Japan
    8%
  • Asia Developed
    6%
  • Asia Emerging
    3%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%
  • Europe Emerging
    1%

Geographically, the portfolio is predominantly invested in North America (53%), with significant exposures to Europe and Japan. While this provides a solid foundation in developed markets, the relatively lower allocation to emerging and frontier markets may limit exposure to high-growth regions. Increasing diversification into these areas could enhance growth prospects and risk mitigation.

Market capitalization Info

  • Mega-cap
    21%
  • Mid-cap
    19%
  • Small-cap
    19%
  • Large-cap
    16%
  • Micro-cap
    13%

Market capitalization exposure is balanced across mega, medium, small, big, and micro caps, reflecting a strategy that leverages the growth potential of smaller companies while maintaining stability through larger firms. This diversification supports the portfolio's balanced risk profile and growth objectives, capturing opportunities across the market cap spectrum.

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 composition is close to the efficient frontier for its risk level, indicating an optimal balance between risk and return. While the optimal portfolio suggests a slightly higher expected return of 11.34% at a marginally increased risk level, the current allocation already aligns well with the investor's balanced risk profile. Periodic rebalancing and reviewing asset allocation can help maintain this efficiency.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.50%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • WisdomTree Emerging Markets SmallCap Dividend Fund 2.60%
  • PIMCO ETF Trust 5.90%
  • SPDR® Portfolio S&P 500 ETF 1.10%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.60%
  • Weighted yield (per year) 2.40%

Dividend yields across the ETFs contribute to the portfolio's income, with a total yield of 2.40%. This income stream, combined with capital appreciation, enhances overall returns. Given the varying yields, from 1.10% to 5.90%, the portfolio benefits from a mix of growth and income-generating investments, aligning with a balanced investment strategy.

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%
  • PIMCO ETF Trust 0.55%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.23%

The portfolio's total expense ratio (TER) of 0.23% is relatively low, enhancing net returns over time. The wide range in individual ETF costs, from 0.02% to 0.58%, reflects a cost-effective approach to diversification. Keeping costs low is crucial for long-term investment success, as even small differences in fees can significantly impact overall returns.

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