Growth-focused portfolio with a strong tilt towards US small-cap value and S&P 500 ETFs

Report created on Aug 19, 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 predominantly invests in ETFs, with a significant 55% allocation to a U.S. Small Cap Value ETF, complemented by 15% allocations each to an S&P 500 Momentum ETF, a standard S&P 500 ETF, and an International Stock Index Fund ETF. This structure suggests a strategic emphasis on growth through U.S. small-cap value stocks, while also seeking momentum and broad market exposure. The inclusion of international stocks adds a layer of global diversification, though the portfolio is heavily skewed towards North American equities.

Growth Info

Historically, this portfolio has delivered a Compound Annual Growth Rate (CAGR) of 16.68%, with a notable maximum drawdown of -41.16%. The days contributing most significantly to returns are relatively few, indicating that performance peaks are concentrated in specific periods. This pattern underscores the portfolio's growth orientation but also highlights its volatility. Comparing these figures with benchmark indices could provide further insight into performance relative to broader markets.

Projection Info

Using Monte Carlo simulations, which forecast potential outcomes based on historical data, this portfolio's future performance varies widely, with a median increase of 652.4% and a 5th percentile outcome at 55.9%. While simulations offer a range of possible futures, they rely on past trends, which may not predict future movements accurately. This analysis suggests optimism for growth but also indicates significant risk, as evidenced by the wide outcome range.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, showing a clear growth orientation but lacking in asset class diversification. While stocks have historically offered higher returns compared to bonds or cash, they also come with increased volatility. This single-class focus enhances growth potential but exposes the portfolio to greater market fluctuations, which might not be suitable for all investors, especially those with a lower risk tolerance or nearing retirement.

Sectors Info

  • Financials
    23%
  • Consumer Discretionary
    15%
  • Industrials
    14%
  • Technology
    14%
  • Energy
    9%
  • Consumer Staples
    6%
  • Telecommunications
    6%
  • Health Care
    5%
  • Basic Materials
    4%
  • Utilities
    1%
  • Real Estate
    1%

Sector allocation spans financial services, consumer cyclicals, industrials, and technology, making up the majority. This sector spread indicates a balanced approach within the equity allocation, touching upon both cyclical and defensive sectors. However, the heavy weighting towards financial services and technology sectors could introduce sector-specific risks, such as regulatory changes or rapid technological shifts, which investors should monitor closely.

Regions Info

  • North America
    85%
  • Europe Developed
    6%
  • Asia Emerging
    3%
  • Japan
    2%
  • Asia Developed
    2%
  • Latin America
    1%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographic allocation is heavily North American-centric, with 85% exposure, supplemented by modest investments in developed European markets and emerging markets in Asia. This geographic distribution reflects a preference for the perceived stability and growth potential of North American markets but may underutilize opportunities in emerging markets and other developed regions. Enhancing geographic diversity could mitigate region-specific risks and tap into growth opportunities elsewhere.

Market capitalization Info

  • Micro-cap
    28%
  • Small-cap
    27%
  • Mega-cap
    22%
  • Large-cap
    15%
  • Mid-cap
    8%

The portfolio spans micro to mega-cap stocks, with a notable emphasis on micro (28%) and small (27%) caps. This market cap distribution aligns with the portfolio's growth focus, as smaller companies often offer higher growth potential but come with increased risk and volatility. The presence of mega and big caps provides some balance, contributing stability and potential for dividend income.

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.

Regarding risk vs. return optimization, this portfolio appears to be positioned towards the higher end of the risk spectrum, aiming for growth. Utilizing the Efficient Frontier concept could identify potential adjustments to maximize returns for a given level of risk. However, this optimization is contingent on the current market conditions and asset allocation, emphasizing that there's no one-size-fits-all solution in portfolio management.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.61%

The portfolio's dividend yield averages 1.61%, with the highest yield from the International Stock Index Fund ETF. Dividends contribute to total return and provide a passive income stream, which can be particularly appealing during market downturns or for income-focused investors. However, the focus on growth and value may limit the portfolio's overall yield compared to more income-oriented investments.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.17%

The total expense ratio (TER) of 0.17% is relatively low, enhancing net returns to the investor. Keeping costs low is crucial for long-term investment success, as fees can significantly erode returns over time. This portfolio benefits from the cost efficiency of ETFs, combining broad market exposure with minimal expense.

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