This portfolio has only about 4.8 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

Broadly Diversified Growth Portfolio with Strong Performance and Moderate Costs

Report created on Jul 27, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is composed of three main ETF positions: Vanguard Total Stock Market Index Fund ETF Shares (70%), Vanguard Total International Stock Index Fund ETF Shares (20%), and Avantis® U.S. Small Cap Value ETF (10%). This composition highlights a strong focus on equities with a significant allocation to the U.S. stock market. The inclusion of international stocks and small-cap value stocks adds a layer of diversification, which is crucial for mitigating risks associated with market volatility.

Growth Info

Historically, the portfolio has performed impressively with a CAGR of 13.37%. This suggests that the portfolio has been able to generate consistent returns over time. However, the maximum drawdown of -35.71% indicates that there have been periods of significant decline, which is common for growth-oriented portfolios. Investors should be prepared for such volatility and ensure they have the risk tolerance to handle these fluctuations.

Projection Info

Using a Monte-Carlo simulation with 1,000 iterations, the portfolio's future performance was projected. This statistical method helps to model the probability of different outcomes. Assuming a hypothetical initial investment, the 5th percentile end value is 24.95%, while the median (50th percentile) is 460.95%, and the 67th percentile is 707.52%. The high number of simulations with positive returns (973 out of 1,000) indicates a strong likelihood of achieving favorable outcomes.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is heavily weighted towards stocks, with 99.14% of the assets in equities. This aligns with the growth classification, as equities typically offer higher returns but come with increased risk. A minor allocation to cash (0.83%) and other assets (0.03%) provides minimal diversification. For those looking to reduce risk, incorporating more bonds or other fixed-income securities could be beneficial.

Sectors Info

  • Technology
    24%
  • Financials
    16%
  • Industrials
    12%
  • Consumer Discretionary
    12%
  • Health Care
    11%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Energy
    5%
  • Basic Materials
    4%
  • Real Estate
    3%
  • Utilities
    2%

The sector allocation is quite diverse, with significant holdings in Technology (23.69%), Financial Services (15.80%), and Industrials (11.61%). This broad sector exposure helps to spread risk across different areas of the economy. However, the high concentration in Technology could make the portfolio more vulnerable to sector-specific downturns. Balancing this with increased exposure to other sectors might enhance stability.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Japan
    3%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is predominantly invested in North America (81.04%), with smaller allocations to Europe Developed (8.17%), Japan (3.31%), and other regions. This heavy focus on North America could expose the portfolio to region-specific risks. Diversifying further into emerging markets or other developed regions could provide a hedge against economic downturns in North America.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.40%
  • Vanguard Total International Stock Index Fund ETF Shares 3.10%
  • Weighted yield (per year) 1.76%

The portfolio's dividend yield data was not provided, but given the high allocation to growth stocks, it is likely to be relatively low. Growth stocks typically reinvest earnings to fuel further growth rather than paying out dividends. Investors seeking regular income might want to include more dividend-paying stocks or other income-generating assets to balance the portfolio.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.06%

The portfolio's total expense ratio (TER) is 0.06%, which is quite low. This is beneficial as lower costs mean more of the returns are retained by the investor. The Vanguard Total Stock Market Index Fund ETF Shares have the lowest cost at 0.03%, while the Avantis® U.S. Small Cap Value ETF is the highest at 0.25%. Keeping costs low is crucial for maximizing long-term returns.

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