Growth-oriented portfolio with a strong tilt towards US small-caps and international diversification

Report created on Jul 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 showcases a significant commitment to growth, primarily through a 65% allocation in U.S. small-cap stocks. The remaining structure diversifies internationally with 25% in international equities, 5% in emerging markets, and a modest 5% in U.S. large-cap stocks. This composition indicates a strategy leaning towards higher growth potential, albeit with increased volatility, especially given the substantial weight in small-cap stocks. Compared to typical growth-oriented benchmarks, this portfolio might exhibit higher short-term fluctuations but potentially offers superior long-term growth opportunities.

Growth Info

Historical performance, with a Compound Annual Growth Rate (CAGR) of 9.57%, underscores the portfolio's robust growth trajectory. Despite a significant maximum drawdown of -39.59%, which highlights periods of high volatility, the portfolio's days contributing to 90% of returns being concentrated in just 16 days suggests that timing the market plays a critical role in capturing gains. This performance, coupled with a majority of Monte Carlo simulations (934 out of 1000) yielding positive returns, suggests resilience and the potential for recovery after downturns.

Projection Info

The Monte Carlo simulation, a tool for assessing future risk and return by running numerous hypothetical scenarios, forecasts a wide range of outcomes for this portfolio. With the 50th percentile projection at a 207.5% increase, it indicates a strong growth potential. However, the presence of a 5th percentile at -9.2% reflects the inherent risks, particularly in adverse market conditions. These projections emphasize the importance of maintaining a long-term perspective to mitigate short-term volatility.

Asset classes Info

  • Stocks
    100%

With 100% of the portfolio allocated to stocks, this asset class composition underscores a high-growth, high-risk strategy. The absence of bonds, cash, or alternative investments means the portfolio may lack cushions against market volatility. While this approach aligns with a growth-focused investment strategy, it also exposes the portfolio to significant market fluctuations, underscoring the need for a high risk tolerance among investors.

Sectors Info

  • Financials
    20%
  • Industrials
    17%
  • Technology
    16%
  • Consumer Discretionary
    11%
  • Health Care
    11%
  • Real Estate
    5%
  • Consumer Staples
    5%
  • Basic Materials
    4%
  • Telecommunications
    4%
  • Energy
    4%
  • Utilities
    3%

The sector allocation reveals a diversified yet growth-oriented approach, with significant investments in financial services, industrials, and technology. These sectors often embody growth potential but can be sensitive to economic cycles. The balanced exposure across consumer cyclicals, healthcare, and other sectors helps mitigate sector-specific risks, although the heavy emphasis on growth sectors may lead to increased volatility.

Regions Info

  • North America
    72%
  • Europe Developed
    14%
  • Japan
    5%
  • Asia Developed
    3%
  • Asia Emerging
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic allocation highlights a strong bias towards North America (72%), complemented by diversified exposure to developed and emerging markets in Europe, Asia, and other regions. This geographic spread supports risk mitigation through international diversification, although the portfolio's performance will be heavily influenced by North American market dynamics. The modest exposure to emerging markets offers growth potential but adds to the portfolio's risk profile.

Market capitalization Info

  • Small-cap
    40%
  • Micro-cap
    21%
  • Mega-cap
    17%
  • Large-cap
    12%
  • Mid-cap
    9%

The market capitalization breakdown, with a dominant 61% in small and micro-caps, aligns with the portfolio's growth-oriented strategy. Small-cap stocks, while offering higher growth potential, come with increased volatility and risk. The presence of mega and large-cap stocks, though minimal, provides some degree of stability and liquidity. This mix supports a high-risk, high-reward investment approach but necessitates a tolerance for significant fluctuations.

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 current portfolio's expected return, based on the Efficient Frontier analysis, suggests room for optimization. By adjusting asset allocation, the portfolio could potentially achieve an expected return of 14.31% at a similar risk level. This optimization process highlights the importance of regularly reassessing and rebalancing the portfolio to maintain an optimal risk-return profile, especially in dynamic market conditions.

Dividends Info

  • Schwab U.S. Small-Cap ETF 1.50%
  • Schwab Emerging Markets Equity ETF 2.60%
  • Schwab International Equity ETF 2.60%
  • Schwab U.S. Large-Cap ETF 1.20%
  • Weighted yield (per year) 1.82%

The portfolio's average dividend yield of 1.82% contributes to its total return, providing a steady income stream in addition to potential capital gains. While the focus remains on growth, dividends from a diverse set of equities, including emerging markets, enhance income and can offer a buffer during market downturns. This yield, though modest, plays a role in the portfolio's long-term growth strategy.

Ongoing product costs Info

  • Schwab U.S. Small-Cap ETF 0.04%
  • Schwab Emerging Markets Equity ETF 0.11%
  • Schwab International Equity ETF 0.06%
  • Schwab U.S. Large-Cap ETF 0.03%
  • Weighted costs total (per year) 0.05%

With an overall Total Expense Ratio (TER) of 0.05%, the portfolio benefits from exceptionally low costs, maximizing the potential for net returns. Low-cost ETFs are an efficient way to gain broad market exposure without eroding returns through high fees. This cost-effective approach is crucial for long-term growth, as even small differences in fees can significantly impact investment outcomes over time.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey