A growth-oriented ETF portfolio with a strong emphasis on global diversification and low costs
Report created on Sep 10, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 47.69% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 34.45% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 17.86%
This portfolio is structured around three major ETFs, focusing on the total stock market, international stocks, and U.S. small-cap value stocks. The significant allocation to the Vanguard Total Stock Market Index Fund ETF Shares (47.69%) and the Vanguard Total International Stock Index Fund ETF Shares (34.45%) indicates a robust global exposure, while the Avantis® U.S. Small Cap Value ETF (17.86%) introduces a strategic tilt towards value investing within the U.S. small-cap space. This composition aligns with a growth-oriented investment strategy, leveraging broad diversification across both domestic and international equities.
Growth
With a Compound Annual Growth Rate (CAGR) of 14.56%, the portfolio has demonstrated strong historical performance. The Max Drawdown of -36.73% suggests significant volatility, which is typical for growth-oriented portfolios with high equity exposure. The fact that 90% of returns came from just 16 days highlights the importance of staying invested over the long term, as missing these key days could drastically affect overall performance.
Projection
Monte Carlo simulations, which use historical data to project a range of possible future outcomes, suggest a wide spread of potential returns for this portfolio. With a median projected growth of 515.6% and 971 out of 1,000 simulations showing positive returns, the forward-looking outlook appears optimistic. However, it's important to remember that such projections are not guarantees and are subject to the limitations of past performance as a predictor of future results.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's near-total allocation to stocks (99%) with a minimal cash holding (1%) underscores its aggressive growth stance. This high equity exposure is designed for investors with a higher risk tolerance, aiming for substantial long-term capital appreciation. The lack of diversification into other asset classes, like bonds or real estate (beyond REITs within the equity ETFs), may increase volatility but also potential returns.
Sectors
- Technology 21%
- Financials 19%
- Industrials 13%
- Consumer Discretionary 12%
- Health Care 8%
- Telecommunications 7%
- Energy 6%
- Consumer Staples 5%
- Basic Materials 4%
- Real Estate 2%
- Utilities 2%
Sector allocation reveals a technology-heavy portfolio (21%), followed by significant investments in financial services (19%) and industrials (13%). This sector distribution is typical for growth-focused portfolios, given the higher growth potential historically associated with these sectors. However, the concentration in technology and financial services also introduces sector-specific risks that investors should be mindful of.
Regions
- North America 68%
- Europe Developed 14%
- Asia Emerging 6%
- Japan 5%
- Asia Developed 4%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographic exposure is predominantly North American (68%), with meaningful allocations to developed Europe (14%) and emerging Asia (6%). This diversified global footprint helps mitigate region-specific risks and capitalizes on growth opportunities in both developed and emerging markets. The portfolio's underexposure to Latin America and Africa/Middle East, while in line with many growth-oriented strategies, may limit exposure to potential high-growth regions.
Market capitalization
- Mega-cap 35%
- Large-cap 25%
- Mid-cap 15%
- Small-cap 13%
- Micro-cap 10%
The market capitalization breakdown shows a balanced approach, with a tilt towards larger companies (Mega 35%, Big 25%). The inclusion of medium, small, and micro-cap stocks (totaling 38%) enhances the portfolio's growth potential by capturing the higher growth rates often found in smaller companies. This cap-size diversification is a key element in managing risk while pursuing growth.
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 well-positioned for growth investors, balancing risk and return effectively. However, continuous review and potential rebalancing towards underrepresented sectors or geographies could further optimize risk-return characteristics. It's important to recognize that optimization based on historical data does not guarantee future performance but can guide strategic adjustments.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.60%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.70%
- Weighted yield (per year) 1.79%
The portfolio's average dividend yield of 1.79% contributes to its total return, with the Vanguard Total International Stock Index Fund ETF Shares offering the highest yield at 2.70%. While growth-focused investors may prioritize capital appreciation over income, dividends provide a source of cash flow that can be reinvested to compound growth or offer slight income during market downturns.
Ongoing product costs
- 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 benefits from remarkably low costs, with a total expense ratio (TER) of just 0.08%. Low costs are crucial for long-term investment success, as they allow a greater portion of returns to compound over time. This cost efficiency is particularly advantageous in a growth-oriented portfolio, where the impact of fees on compounding returns is magnified over long investment horizons.
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