A growth-focused portfolio with strategic exposure to global and small-cap value ETFs

Report created on Jul 24, 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 strategically allocates 60% to a broad U.S. stock market ETF, 20% to international stocks, and the remainder to small-cap value ETFs, both domestic and international. This composition suggests a growth-oriented approach with a tilt towards value investing in smaller companies, which can offer higher growth potential but with added volatility. The heavy weighting towards a total stock market ETF provides a solid foundation, diversified across various sectors and market caps, while the international and small-cap allocations enhance growth prospects and global diversification.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 15.16%, with a significant drawdown of -36.60%. This performance indicates a strong growth trajectory, albeit with periods of high volatility. The days contributing most to returns highlight the portfolio's sensitivity to market swings. Comparing this performance to a relevant benchmark would provide context, but the high growth rate suggests that the portfolio has capitalized well on market opportunities, despite the inherent risks.

Projection Info

Monte Carlo simulations project a wide range of outcomes for this portfolio, with a median increase of 433.9%, showcasing its growth potential. However, the simulation also underscores the risk of significant variability in returns. While 969 out of 1,000 simulations resulted in positive returns, the wide spread between the 5th and 67th percentiles highlights the uncertainty and risk involved. This analysis is crucial for understanding potential future scenarios but remember, it's based on historical data, which is not a guaranteed predictor of future performance.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's almost exclusive investment in stocks (99%), with a minimal cash holding, aligns with its growth profile. This asset class distribution supports higher potential returns over the long term but comes with increased market risk. Diversification across different stocks and sectors can mitigate some risk, but the lack of alternative asset classes like bonds or real estate means less cushion against stock market volatility.

Sectors Info

  • Technology
    22%
  • Financials
    18%
  • Industrials
    12%
  • Consumer Discretionary
    12%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Energy
    5%
  • Basic Materials
    4%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation shows a strong emphasis on technology and financial services, which are sectors often associated with growth but also higher volatility. The presence in industrials, consumer cyclicals, and healthcare provides a balance, contributing to the portfolio's diversification. However, the heavy tech weighting may expose the portfolio to sector-specific risks, such as regulatory changes or economic shifts affecting tech valuations.

Regions Info

  • North America
    77%
  • Europe Developed
    10%
  • Japan
    5%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The portfolio's geographic allocation is heavily skewed towards North America (77%), with modest exposure to developed Europe and Japan. Emerging markets are underrepresented, which may limit exposure to high-growth regions. While the current allocation benefits from the stability of developed markets, incorporating more emerging markets could enhance growth prospects and diversification, albeit at the cost of higher volatility.

Market capitalization Info

  • Mega-cap
    33%
  • Large-cap
    25%
  • Mid-cap
    18%
  • Small-cap
    13%
  • Micro-cap
    9%

With a mix of mega, big, medium, small, and micro-cap stocks, the portfolio is well-diversified across different company sizes. This diversification can help mitigate risk and capitalize on growth opportunities in various market segments. Small and micro-cap stocks, in particular, offer high growth potential but come with increased volatility and risk.

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.

Considering the Efficient Frontier, this portfolio appears to be positioned for high growth with a calculated level of risk. The allocation between different ETFs, focusing on both broad market exposure and specific growth areas like small-cap value, suggests an attempt to optimize the risk-return ratio. While perfect efficiency is theoretical and market conditions change, the current mix aligns well with growth objectives balanced by diversification to manage risk.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.70%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.70%

Dividend yields across the ETFs range from 1.20% to 3.70%, contributing to the portfolio's total yield of 1.70%. This yield provides a modest income stream, though the focus remains on capital appreciation. For investors seeking growth, reinvesting these dividends can compound returns over time. However, the portfolio's primary goal appears to be growth rather than income, which aligns with the overall investment strategy.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • 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 0.05%
  • Weighted costs total (per year) 0.08%

The portfolio's average Total Expense Ratio (TER) of 0.08% is impressively low, especially given the diversification and potential for growth. Low costs are crucial for long-term investment success, as they directly enhance net returns. This cost efficiency is a significant strength, allowing more of the portfolio's gross returns to contribute to wealth accumulation over time.

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