A balanced and broadly diversified portfolio with a strategic emphasis on global stocks

Report created on Jul 28, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio showcases a strong preference for equity investments, with a significant 60% allocation to a global stock index fund, ensuring broad market exposure. The remaining assets are distributed among specialized ETFs focusing on momentum, growth, value, and emerging markets. This composition suggests a deliberate strategy to capture various market dynamics while maintaining a balanced risk profile. The diversification across different investment styles and regions is commendable, aligning with best practices for reducing volatility and enhancing long-term returns.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 12.12% and a maximum drawdown of -24.88%, the portfolio has demonstrated resilience and growth over time. The days contributing most to returns highlight the impact of significant market movements on performance. Comparing these figures to benchmarks could provide further insight into the portfolio's relative strength. The historical performance indicates a well-constructed portfolio that balances risk and return, supporting the goal of achieving steady growth over the long term.

Projection Info

Monte Carlo simulations, employing 1,000 scenarios to forecast future performance, suggest a wide range of outcomes with a median increase of 436%. This method, while based on historical data, provides a probabilistic forecast rather than a guarantee, highlighting the importance of understanding potential volatility and the value of diversification. The high count of simulations with positive returns reinforces the portfolio's robustness against varied market conditions.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's nearly exclusive investment in stocks (99%) positions it for growth, albeit with higher volatility compared to more diversified asset class allocations. The minimal cash holding (1%) suggests a fully invested stance, aiming to maximize market participation. For investors seeking growth, this allocation is appropriate, though some might consider a small allocation to bonds or other asset classes to reduce volatility and provide income.

Sectors Info

  • Technology
    23%
  • Financials
    19%
  • Consumer Discretionary
    11%
  • Industrials
    11%
  • Telecommunications
    8%
  • Health Care
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    4%
  • Utilities
    3%
  • Real Estate
    2%

The sectoral distribution, with technology and financial services commanding the largest shares, reflects a focus on industries with high growth potential. However, this concentration also exposes the portfolio to sector-specific risks, such as regulatory changes or economic cycles. Diversifying more evenly across sectors, or considering sectors with defensive characteristics, could mitigate such risks while still capturing growth opportunities.

Regions Info

  • North America
    70%
  • Europe Developed
    13%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation, heavily weighted towards North America (70%), provides stability and access to some of the world's largest companies. However, the relatively smaller allocations to emerging markets and other developed regions might limit exposure to global growth trends. Increasing investments in underrepresented areas could enhance diversification benefits and access to high-growth potential outside the U.S.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    33%
  • Mid-cap
    19%
  • Small-cap
    4%
  • Micro-cap
    1%

The focus on mega and big-cap stocks (75% combined) aligns with the portfolio's balanced risk profile, offering stability and potential for growth. However, the modest allocation to small and micro-cap stocks (5% combined) suggests an opportunity to further diversify and potentially enhance returns, as these segments can offer higher growth prospects albeit with increased risk.

Redundant positions Info

  • Avantis® International Small Cap Value ETF
    Dimensional International Value ETF
    High correlation

The identified high correlation between certain ETFs, specifically in the international small cap and value segments, indicates overlapping exposures that may not contribute to diversification. Streamlining these investments by eliminating redundancies could improve the portfolio's efficiency, ensuring each holding contributes uniquely to the overall risk and return profile.

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 recommendation to reduce overlap among highly correlated assets is a strategic move to optimize the portfolio's risk-return profile. By focusing on unique contributions from each investment, the portfolio can achieve a more efficient allocation on the Efficient Frontier, where the optimal balance of risk and return is found. This refinement ensures that each asset plays a distinct role in achieving the portfolio's objectives.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.70%
  • Avantis® Emerging Markets Value ETF 3.90%
  • Dimensional International Value ETF 3.30%
  • Invesco S&P International Developed Momentum ETF 2.00%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Russell 1000 Growth Index Fund ETF Shares 0.50%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Vanguard Value Index Fund ETF Shares 2.10%
  • Weighted yield (per year) 1.66%

The portfolio's average dividend yield of 1.66% contributes to its total return, providing a steady income stream in addition to potential capital appreciation. While the focus is clearly on growth, the dividends from value-oriented ETFs enhance the portfolio's income characteristics. Investors might consider rebalancing towards higher-yielding assets if income becomes a more significant objective.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Value ETF 0.36%
  • Dimensional International Value ETF 0.27%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Russell 1000 Growth Index Fund ETF Shares 0.08%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Vanguard Value Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.10%

With an overall portfolio expense ratio of 0.10%, the portfolio is cost-efficient, maximizing the investor's return potential. The low costs are particularly impressive given the diversified exposure across various ETFs, highlighting the portfolio's strategic construction. Maintaining low investment costs is crucial for enhancing long-term returns, and this portfolio exemplifies effective cost management.

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