Growth-focused portfolio with high exposure to global equities and small-cap value ETFs

Report created on Jul 19, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio predominantly consists of the Vanguard Total World Stock Index Fund ETF Shares, making up 80% of the allocation, with the remainder split evenly between Avantis® International Small Cap Value ETF and Avantis® U.S. Small Cap Value ETF. This structure emphasizes a growth-oriented strategy with a significant lean towards global equity markets. The heavy weighting in a total world stock ETF ensures broad diversification across geographies and sectors, while the inclusion of small-cap value ETFs, both domestic and international, introduces a tilt towards potentially higher-yielding but riskier assets.

Growth Info

The portfolio has shown a Compound Annual Growth Rate (CAGR) of 13.84%, with a maximum drawdown of -36.36%. These figures indicate a strong historical performance, albeit with significant volatility. The days contributing to 90% of returns being concentrated in just 15.0 days highlight the portfolio's susceptibility to short-term market movements. This performance, while impressive, underscores the importance of risk tolerance and the need for a long-term investment horizon to weather periods of market downturns.

Projection Info

Monte Carlo simulations, using historical data to project future outcomes, suggest a wide range of potential returns for this portfolio. With 968 out of 1,000 simulations showing positive returns and a median projected increase of 458.6%, the forward-looking outlook appears robust. However, it's crucial to remember that these projections are inherently uncertain and past performance is not a reliable indicator of future results. The simulations provide a useful framework for understanding potential volatility and return scenarios but should be interpreted with caution.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily skewed towards stocks (99%), with a minimal cash holding (1%). This allocation is consistent with a growth-oriented investment strategy, aiming for higher returns at the expense of increased volatility. The absence of bonds or other asset classes means the portfolio might be more susceptible to market fluctuations. Diversifying across different asset classes can help mitigate risk and smooth out returns over time.

Sectors Info

  • Technology
    20%
  • Financials
    19%
  • Industrials
    13%
  • Consumer Discretionary
    12%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Basic Materials
    5%
  • Energy
    5%
  • Real Estate
    2%
  • Utilities
    2%

Sectoral allocation shows a heavy emphasis on Technology and Financial Services, comprising nearly 40% of the portfolio. This concentration in sectors that can be highly volatile but offer substantial growth opportunities is aligned with the portfolio's growth objective. However, it may also lead to higher risk, particularly in market downturns. Balancing sector exposures can reduce risk while still allowing for significant growth potential.

Regions Info

  • North America
    63%
  • Europe Developed
    16%
  • Japan
    8%
  • Asia Emerging
    5%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America (63%), with significant exposures to developed Europe and Japan. Emerging markets represent a smaller fraction of the allocation. This distribution suggests a conservative approach to geographical diversification, favoring stable, developed markets over the potentially higher growth but riskier emerging markets. Increasing exposure to emerging markets could offer higher growth prospects but would also increase volatility.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    25%
  • Mid-cap
    20%
  • Small-cap
    12%
  • Micro-cap
    6%

The market capitalization breakdown reveals a diversified mix of mega (34%), big (25%), medium (20%), small (12%), and micro (6%) cap stocks. This blend suggests a balanced approach, with a tilt towards larger companies that typically offer stability but lower growth potential compared to smaller companies. The inclusion of small and micro-cap stocks introduces growth opportunities, albeit with higher risk.

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's current allocation suggests it is positioned for a relatively optimal risk-return balance based on historical data. However, the heavy reliance on equities and specific sectors might limit diversification benefits. Exploring adjustments to include assets with lower correlations or different risk-return profiles could potentially enhance the portfolio's efficiency, optimizing its position on the Efficient Frontier.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.80%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 1.91%

The dividend yields from the Avantis® ETFs, particularly the International Small Cap Value ETF at 3.80%, contribute to the portfolio's income generation, supplementing growth from capital appreciation. The overall yield of 1.91% indicates a balance between growth and income, aligning with the portfolio's growth orientation while providing a steady income stream.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.12%

With a Total Expense Ratio (TER) averaging 0.12%, the portfolio is efficiently managed in terms of costs. Lower costs can significantly impact long-term returns, and this portfolio benefits from relatively low fees, particularly for the Vanguard Total World Stock Index Fund ETF Shares at 0.07%. Keeping costs low is a fundamental principle of successful investing, and this portfolio aligns well with that strategy.

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