A growth focused stock only portfolio with strong US tilt and low ongoing costs

Report created on Aug 12, 2024

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 made up of four stock ETFs, with 70% in US large‑cap funds, 15% in US small‑cap value, and 15% in international stocks. There’s no cash or bonds, so it leans firmly toward growth rather than stability. Compared with a typical “growth” benchmark that might hold some bonds, this setup is more aggressive but still broadly diversified within stocks. This allocation is well-balanced and aligns closely with global standards for an equity-heavy approach. If smoother ups and downs are desired, gradually adding a small slice of defensive assets over time could help reduce the size of future drawdowns without fully sacrificing growth potential.

Growth Info

Historically, the portfolio shows a very strong compound annual growth rate (CAGR) of 16.64%, meaning $10,000 would have grown to roughly $47,000 over 10 years if that rate persisted. However, it also experienced a max drawdown of about -34.5%, so a $100,000 balance could have temporarily dropped toward $65,000 in a bad stretch. The fact that 90% of returns came from about 20 days underscores how missing short bursts can drastically change long‑term results. Past performance can’t predict the future, but it does highlight the importance of staying invested consistently rather than trying to time short-term market moves.

Projection Info

The forward projections use a Monte Carlo simulation, which basically runs 1,000 “what if” market paths using historical return and volatility patterns. In these simulations, the median result (50th percentile) was about +592%, while the 5th percentile still showed a positive 52.5% gain, and 988 out of 1,000 paths ended ahead. The average simulated annual return of 16.92% looks very similar to historical results, which signals coherence in the inputs. However, simulations rest heavily on the past and don’t capture future regime changes, so they’re best viewed as rough ranges. Treat these projections as probability bands, not promises, and plan with some extra safety margin.

Asset classes Info

  • Stocks
    100%

All of the holdings are in stocks, with 0% in cash, bonds, or alternatives. That creates a very clear growth profile and avoids the drag that low-yielding assets can sometimes bring in bull markets. The flip side is that there’s no built‑in cushion when markets fall, unlike balanced benchmarks that mix stocks and bonds. For someone comfortable with bigger swings, this 100% stock exposure can be a reasonable long‑term approach. For anyone nearing a big spending goal, gradually blending in a modest share of lower‑volatility assets over time could make the ride smoother and lower the chance of needing to sell stocks during a deep market slump.

Sectors Info

  • Technology
    25%
  • Financials
    13%
  • Consumer Discretionary
    12%
  • Health Care
    11%
  • Industrials
    10%
  • Energy
    9%
  • Telecommunications
    9%
  • Consumer Staples
    8%
  • Basic Materials
    3%
  • Utilities
    1%
  • Real Estate
    1%

Sector exposure is broad: technology ~25%, financials 13%, consumer cyclicals 12%, healthcare 11%, industrials 10%, energy and communication services 9% each, with smaller slices in defensive and rate‑sensitive areas. This sector composition matches benchmark data, which is a strong indicator of diversification. The tilt toward technology and consumer‑sensitive areas supports growth but can be more sensitive to interest rates and economic slowdowns. The presence of dividend and value strategies helps balance that with more income‑oriented and potentially steadier sectors. If volatility ever feels too high, nudging a bit more toward defensive, income‑producing areas could temper the impact of sharp downturns without dramatically changing the growth objective.

Regions Info

  • North America
    86%
  • Europe Developed
    6%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, about 86% is in North America, with the rest spread across developed Europe, Japan, other Asia, and a small slice of emerging markets and other regions. This US‑heavy stance aligns with many common benchmarks and has been rewarding over the last decade. The international allocation offers some diversification, but it’s still lower than a fully global market weight approach. Home bias can feel comfortable and often tracks domestic economic fortunes closely, but it also concentrates risk in one region. Gradually increasing the global allocation over time—especially beyond developed markets—could spread political, currency, and economic risks more widely while keeping the core US focus intact.

Market capitalization Info

  • Large-cap
    32%
  • Mega-cap
    32%
  • Mid-cap
    17%
  • Small-cap
    10%
  • Micro-cap
    8%

By market capitalization, the portfolio holds a strong blend: about 64% in mega and big companies, 17% in mid caps, and roughly 18% in small and micro caps. This is a nice mix, with large caps providing stability and brand‑name strength, while small-cap value brings more growth and recovery potential, though with bumpier returns. Compared with a pure large‑cap benchmark, this setup adds a deliberate tilt toward the smaller side, which historically has sometimes boosted long‑term returns but increased volatility. This allocation is well-balanced and aligns closely with global standards for diversified equity size exposure. Keeping this mix steady through regular rebalancing can help maintain the intended risk 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.

Looking at risk versus return, this group of ETFs can be mapped onto an Efficient Frontier, which is the set of allocations that deliver the best possible return for each level of risk using only these funds. Here, “efficiency” just means the strongest risk‑return trade‑off, not necessarily the highest diversification or lowest drawdown. The observed 16.64% historical CAGR and -34.5% max drawdown suggest the current mix is already positioned for strong growth at a moderate‑high risk level. Fine‑tuning the weights—such as modestly adjusting the balance between aggressive growth, dividend, small‑cap, and international slices—could nudge the allocation slightly closer to the frontier without changing the overall character of a growth‑oriented, stock‑only strategy.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.94%

The overall dividend yield of about 1.94% blends a high‑yield dividend ETF (~3.8%) with lower‑yield growth and international funds. Dividends are cash payments from companies and can provide a steady return component even when prices are choppy. For an equity‑heavy, growth‑oriented setup, this yield is reasonable and suggests a nice balance between income and reinvested growth. The strong dividend sleeve can help support future withdrawal needs or automatic reinvestment to compound over time. If income becomes a higher priority later on, gradually increasing the share of dividend‑focused or income‑oriented stocks, while keeping an eye on total risk, could shift the portfolio toward a more cash‑flow‑friendly profile.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.08%

The total expense ratio (TER) of around 0.08% is impressively low, especially for a portfolio with a mix of factor, dividend, and international exposure. TER is the annual fee charged by funds, and keeping this small can significantly boost long‑term results, like paying less “toll” on every mile of an investing journey. The costs are impressively low, supporting better long‑term performance and comparing very favorably with many actively managed strategies. With fees already near the floor, there’s little need to chase marginal reductions. The main focus can instead be on staying invested, rebalancing sensibly, and keeping trading frequency low so that transaction costs don’t chip away at this structural advantage.

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