A growth-focused portfolio with a blend of US and international ETFs emphasizing small to mid-cap stocks

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio suits an investor with a growth-oriented profile, moderate to high risk tolerance, and a long-term investment horizon. It's designed for individuals who are primarily interested in capital appreciation and are comfortable with the fluctuations and risks inherent in stock markets, especially in the small to mid-cap segments. The investor likely values diversification across sectors and geographies but prioritizes growth over income, making this strategy ideal for building wealth over time.

Positions

  • Avantis® U.S. Small Cap Value ETF
    AVUV - US0250728773
    25.00%
  • Schwab U.S. Large-Cap Growth ETF
    SCHG - US8085243009
    25.00%
  • Invesco S&P MidCap Momentum ETF
    XMMO - US46137V4648
    25.00%
  • Avantis® International Small Cap Value ETF
    AVDV - US0250728021
    12.50%
  • Invesco S&P International Developed Momentum ETF
    IDMO - US46138E2220
    12.50%

This portfolio is structured around a core of US and international equity ETFs, with a significant allocation to small, mid, and large-cap stocks. The selection includes both value and growth strategies, with a quarter of the portfolio in US small-cap value, another quarter in US large-cap growth, and the remaining divided among mid-cap momentum and international stocks. This blend aims to capture growth across different segments of the market, balancing the high potential returns of small-cap value stocks with the stability of large-cap growth stocks.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 18.22%, with a maximum drawdown of -37.56%. These figures suggest a strong growth trajectory, albeit with significant volatility. The days contributing most to returns indicate that gains have been concentrated in relatively few trading sessions, a common characteristic of growth-oriented investments. It's important to remember, however, that past performance is not indicative of future results.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, this portfolio shows a wide range of potential outcomes. The median projection suggests substantial growth, but the spread between the 5th and 67th percentiles underscores the inherent risk. While these simulations are useful for understanding potential volatility and outcomes, they are based on past market behavior and cannot predict future market movements with certainty.

Asset classes Info

  • Stocks
    100%
  • Cash
    0%
  • Other
    0%
  • Bonds
    0%

The portfolio is exclusively invested in stocks, with no allocation to bonds, cash, or other asset classes. This allocation aligns with a growth-oriented strategy but increases exposure to market volatility. Diversifying across different asset classes could provide a buffer during stock market downturns, potentially smoothing out returns over time.

Sectors Info

  • Technology
    19%
  • Financials
    19%
  • Industrials
    18%
  • Consumer Discretionary
    13%
  • Energy
    7%
  • Telecommunications
    5%
  • Health Care
    5%
  • Basic Materials
    5%
  • Consumer Staples
    4%
  • Utilities
    3%
  • Real Estate
    2%

Sector allocation is broad, with the highest concentrations in technology, financial services, and industrials. This reflects a balanced approach to growth, capturing both the high-growth potential of tech and the stability of financials and industrials. However, the concentration in these sectors could expose the portfolio to sector-specific risks.

Regions Info

  • North America
    77%
  • Europe Developed
    12%
  • Japan
    5%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Asia Developed
    1%
  • Latin America
    1%
  • Asia Emerging
    0%
  • Europe Emerging
    0%

The geographic allocation heavily favors North America, with smaller exposures to developed markets in Europe and Japan. This concentration on developed markets, particularly the US, is typical for growth strategies but limits exposure to emerging market growth. Considering a slight increase in emerging markets could diversify sources of growth and reduce geographical risk.

Market capitalization Info

  • Small-cap
    27%
  • Mid-cap
    24%
  • Mega-cap
    23%
  • Micro-cap
    13%
  • Large-cap
    11%

The portfolio's market capitalization exposure is well-diversified across small, medium, mega, and micro-caps, with a slight lean towards smaller companies. This diversification supports the portfolio's growth objectives, as smaller companies often offer higher growth potential but come with increased risk.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.30%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Invesco S&P International Developed Momentum ETF 1.70%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Invesco S&P MidCap Momentum ETF 0.70%
  • Weighted yield (per year) 1.30%

The dividend yield of the portfolio averages 1.30%, which is modest in comparison to more income-focused investments. This yield reflects the growth orientation of the portfolio, where the primary goal is capital appreciation rather than income. Investors should consider their need for immediate income versus long-term growth.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Invesco S&P MidCap Momentum ETF 0.34%
  • Weighted costs total (per year) 0.23%

The portfolio's total expense ratio (TER) is relatively low at 0.23%, which is beneficial for long-term growth as lower costs typically lead to better net returns. The range of TERs among the selected ETFs underscores the importance of cost awareness in portfolio construction.

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.

Considering the Efficient Frontier, this portfolio appears to be positioned for growth but may not be fully optimized for the best risk-return ratio. Adjusting the allocation could potentially increase returns for the same level of risk or decrease risk without sacrificing returns. This process involves analyzing current allocations and making strategic shifts to improve the portfolio's efficiency.

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