Growth-oriented portfolio with a strong emphasis on global diversification and cost efficiency

Report created on Jul 21, 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 is characterized by a balanced approach, allocating equal weights to U.S. and international equities through Vanguard's Total Stock Market and Total International Stock Index Fund ETF Shares. The inclusion of small-cap, large-cap growth, and mid-cap value ETFs introduces a nuanced blend aimed at enhancing growth potential while attempting to mitigate risk through diversification across market capitalizations.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 14.12% and a maximum drawdown of -36.12%, the portfolio demonstrates strong historical performance. The days contributing most significantly to returns highlight the impact of short-term market movements on overall performance. Comparing against a benchmark, these figures suggest a resilient strategy capable of capturing upside while enduring market volatility.

Projection Info

Monte Carlo simulations, using 1,000 iterations, forecast a wide range of outcomes with a median increase of 475.8%, underscoring the potential for substantial growth. However, the presence of simulations with both high and low returns emphasizes the inherent uncertainties in market behavior and the value of maintaining a diversified approach to manage risk.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's nearly exclusive focus on stocks, with a minor allocation to cash, underscores its growth orientation. This asset class distribution supports higher potential returns but also entails increased volatility. Diversifying further across asset classes, such as including bonds or real estate, could offer additional risk mitigation.

Sectors Info

  • Technology
    22%
  • Financials
    18%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Energy
    5%
  • Basic Materials
    4%
  • Utilities
    3%
  • Real Estate
    3%

Sector allocations reveal a strong emphasis on technology and financial services, reflecting a common growth-focused strategy. However, this concentration can introduce sector-specific risks. Balancing this with investments in less volatile sectors, like utilities or consumer defensive, could provide a more stable return profile during market downturns.

Regions Info

  • North America
    67%
  • Europe Developed
    14%
  • Asia Emerging
    6%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic distribution, with a significant tilt towards North America and developed Europe, suggests a conservative approach within an international context. Expanding into emerging markets or increasing allocations to underrepresented regions could enhance growth prospects and diversification benefits.

Market capitalization Info

  • Mega-cap
    36%
  • Large-cap
    24%
  • Mid-cap
    24%
  • Small-cap
    8%
  • Micro-cap
    6%

The mix of mega, big, medium, small, and micro-cap stocks illustrates a deliberate strategy to balance risk and return across different company sizes. This distribution is conducive to capturing growth in various economic cycles, though small and micro-caps' lower weighting may limit exposure to their higher growth potential.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Schwab U.S. Large-Cap Growth ETF
    High correlation

The noted correlation between the Vanguard Total Stock Market Index Fund ETF Shares and the Schwab U.S. Large-Cap Growth ETF indicates overlapping investments. Reducing such redundancies could enhance the portfolio's diversification and potentially its risk-adjusted returns.

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 allocation presents an opportunity for optimization by addressing the overlap in highly correlated assets. Adjusting these holdings could improve the portfolio's diversification and efficiency, potentially enhancing its risk-return profile without significantly altering its growth orientation.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Mid-Cap Value Index Fund ETF Shares 2.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.83%

The portfolio's average dividend yield of 1.83% contributes to total returns, adding a component of income to the growth-focused strategy. Considering the varying yields across ETFs, an investor might contemplate rebalancing to optimize income-generation without compromising growth objectives.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Mid-Cap Value Index Fund ETF Shares 0.07%
  • 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) 0.06%

With an overall Total Expense Ratio (TER) of 0.06%, the portfolio stands out for its cost efficiency, which is crucial for maximizing long-term returns. The low costs associated with these ETFs are commendable, allowing more of the investment's return to compound over time.

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