Growth-oriented portfolio with a strong focus on dividends and U.S. equities

Report created on Sep 12, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is constructed primarily of ETFs (90%) with a singular stock holding (10%), focusing on growth and income through a blend of momentum, dividend equity, and international small cap value ETFs. The allocation towards ETFs targeting the S&P 500, U.S. dividend equities, and growth indices suggests a strategy leaning towards capital appreciation and income generation. The inclusion of an international small cap value ETF adds a layer of diversified exposure outside the U.S., though the portfolio remains heavily U.S.-centric.

Growth Info

Historical performance showcases a compound annual growth rate (CAGR) of 15.57%, with a maximum drawdown of -34.39%. This performance indicates strong growth potential, albeit with significant volatility. The days contributing to 90% of returns being concentrated in just 19 days highlights the portfolio's susceptibility to short-term market movements, emphasizing the importance of a long-term investment horizon to weather potential volatility.

Projection Info

Forward projections, based on Monte Carlo simulations, suggest a wide range of outcomes with a 50th percentile growth of 427.6%. While the simulations show a high likelihood of positive returns (97.8% of simulations), the broad spread between the 5th and 67th percentiles underscores the inherent uncertainties in forecasting and the impact of market volatility on potential outcomes.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is exclusively in stocks, which aligns with its growth profile but also increases its risk profile. While this concentration can offer higher returns, it lacks the risk mitigation benefits of diversification across different asset classes such as bonds or real estate (beyond the single stock holding in Realty Income Corporation). Introducing additional asset classes could provide a buffer against stock market fluctuations.

Sectors Info

  • Technology
    20%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Real Estate
    11%
  • Industrials
    10%
  • Consumer Staples
    8%
  • Telecommunications
    7%
  • Health Care
    6%
  • Energy
    6%
  • Basic Materials
    3%
  • Utilities
    2%

Sectoral allocation shows a balanced approach with significant investments in technology, financial services, and consumer cyclicals, complemented by real estate and industrials. This sectoral diversity supports the portfolio's growth objectives while offering some level of protection against sector-specific downturns. However, the concentration in technology and financial services sectors could expose the portfolio to higher volatility.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Japan
    5%
  • Asia Emerging
    2%
  • Australasia
    1%
  • Asia Developed
    1%
  • Africa/Middle East
    1%

Geographic allocation is heavily weighted towards North America (81%), with modest exposure to developed Europe and Japan, and minimal allocations to emerging markets. This geographic distribution supports stability and growth through developed markets but may limit potential gains from emerging market economies, which can offer higher growth rates.

Market capitalization Info

  • Large-cap
    42%
  • Mega-cap
    30%
  • Mid-cap
    21%
  • Small-cap
    6%
  • Micro-cap
    1%

The market capitalization breakdown reveals a bias towards big and mega-cap stocks, which are generally considered less risky than smaller companies. This preference for larger companies, making up 72% of the portfolio, aligns with the portfolio's growth and income generation goals, though it may limit exposure to the potentially higher growth rates of smaller companies.

Redundant positions Info

  • Schwab U.S. Dividend Equity ETF
    Vanguard High Dividend Yield Index Fund ETF Shares
    High correlation

The high correlation between certain ETF holdings, specifically those focused on U.S. dividend equities, indicates overlapping exposures that may not provide additional diversification benefits. This redundancy could be addressed by consolidating similar investments or reallocating to less correlated assets to enhance portfolio diversification.

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 presents opportunities for optimization, particularly in reducing asset correlation. By adjusting allocations to decrease overlap and introduce less correlated assets, the portfolio could achieve a more efficient risk-return profile. This strategy would align with the principles of the Efficient Frontier, aiming for the highest possible return for a given level of risk.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.50%
  • Realty Income Corporation 4.90%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • Invesco S&P 500® Momentum ETF 0.50%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Vanguard High Dividend Yield Index Fund ETF Shares 2.50%
  • Weighted yield (per year) 2.22%

The portfolio's dividend yield of 2.22% contributes to its income generation objectives. The mix of high and low yield investments balances income with growth potential. However, the overall yield could be optimized by reassessing allocations to ensure an appropriate balance between income and growth expectations.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Vanguard High Dividend Yield Index Fund ETF Shares 0.06%
  • Weighted costs total (per year) 0.10%

With an average total expense ratio (TER) of 0.10%, the portfolio is cost-efficient, which is beneficial for long-term growth. Lower costs allow for a greater portion of investment returns to compound over time, enhancing overall portfolio performance.

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