A high growth stock focused portfolio with broad global diversification and strong cost efficiency

Report created on Sep 17, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is almost fully invested in stocks, with roughly three fifths in a broad US index, one fifth in broad international stocks, and the rest tilted toward small company value shares. That structure lines up well with many growth-oriented benchmarks that lean heavily on large US companies while still including global exposure. Being aware of this stock-heavy mix matters because it drives both long-term growth potential and short-term volatility. Someone wanting to keep the growth focus could stick with a high stock share but might tweak the balance between large broad funds and small value tilts over time, especially as their time horizon shortens or goals become more capital-preservation oriented.

Growth Info

Based on the historic compound annual growth rate (CAGR) of about 15.6%, a hypothetical $10,000 invested over ten years would have grown to roughly $42,000, compared with something closer to the mid-$30,000s for many broad stock benchmarks. That’s very strong, but the max drawdown of about –36% shows the emotional and financial impact of a growth profile during rough markets. Max drawdown is simply the largest peak-to-trough fall. This history suggests the mix has rewarded risk takers, especially with small value tilts. Still, past returns can’t be assumed going forward, so it can help to focus more on whether that level of decline felt bearable than on chasing the historic growth number.

Projection Info

The Monte Carlo analysis, which runs many random “what if” paths using past data, shows a wide range of possible outcomes. A 50th percentile end value near 495% means $10,000 could land around $59,000 in the middle scenario, while the 5th percentile near 54% suggests tough markets could leave it closer to $15,000. With 981 out of 1,000 simulations positive and an annualized simulation return near 16%, the growth profile looks statistically attractive. Still, Monte Carlo only reshuffles history; it can’t foresee new regimes or structural changes. This kind of projection is best used for planning “what if” ranges and stress tests, not for assuming a specific future result.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

With about 99% in stocks and only a token cash slice, the portfolio is clearly designed for growth over stability. An all‑equity allocation typically beats bond‑heavy mixes over long horizons but can be punishing in deep bear markets. Compared to balanced benchmarks that mix stocks and bonds, this tilts more aggressive. The diversification score is strong thanks to the broad global equity spread and style tilts, even though everything is still in one major asset class. Someone wanting to dial down risk someday could add a modest allocation to more defensive assets, while someone comfortable with current swings can focus instead on maintaining this equity-heavy stance consistently across market cycles.

Sectors Info

  • Technology
    26%
  • Financials
    16%
  • Consumer Discretionary
    12%
  • Industrials
    11%
  • Telecommunications
    8%
  • Health Care
    7%
  • Energy
    5%
  • Basic Materials
    5%
  • Consumer Staples
    5%
  • Utilities
    2%
  • Real Estate
    2%

Sector exposure is well spread, with technology leading at about a quarter, followed by financials, consumer cyclicals, and industrials. This is quite similar to many global equity benchmarks where tech, finance, and consumer areas dominate. That’s positive because it avoids big gaps in major parts of the economy. Tech-heavy allocations can shine in growth and innovation booms but may wobble harder when interest rates rise or when markets rotate toward more defensive areas. The presence of energy, materials, defensive consumer, utilities, and real estate, even at smaller weights, gives a nice cushion across different economic environments. Keeping this broad sector mix intact supports long-term resilience without needing frequent tactical changes.

Regions Info

  • North America
    72%
  • Europe Developed
    11%
  • Japan
    6%
  • Asia Emerging
    3%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, about 72% in North America and 28% abroad is pretty close to global market-cap weights and many US-focused benchmarks. That’s a strong alignment, combining US leadership with meaningful exposure to Europe, Japan, and some emerging regions. This balance helps if leadership rotates from US to overseas markets, something that does happen over decades even if the US has recently dominated. The smaller allocations to emerging areas limit risk from more volatile markets while still providing a growth kicker. For someone who intentionally wants a “home base” in the US but doesn’t want to bet solely on domestic companies, this global profile is a healthy middle ground that is already broadly in line with common best practices.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    27%
  • Mid-cap
    20%
  • Small-cap
    10%
  • Micro-cap
    6%

Market cap exposure is nicely layered: about 64% in mega and big companies, 20% in mid caps, and 16% in small and micro caps. That core in large companies offers stability and close tracking to broad indexes, while the deliberate tilt toward small value via the Avantis funds introduces a potential “factor premium” over long periods. Small and value stocks can be more volatile and go through long cold stretches, but historically they’ve sometimes outpaced the market over decades. This stacked structure—large‑cap core with a small‑cap value tilt—is a classic, well-regarded configuration. Sticking with it requires patience during underperformance phases rather than trying to time when small caps will come back into favor.

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.

On a risk‑return chart, this mix already sits close to what’s often called the Efficient Frontier, which is the curve of allocations that deliver the best expected return for each level of volatility using the chosen building blocks. Here, the main “knobs” are how much to allocate to the small value tilts versus the broad large‑cap funds, not whether to add new products. Slightly reducing the small‑cap slice would usually lower risk a bit with only a modest expected return change, while increasing it would push more toward aggressive growth and bump volatility. Efficiency doesn’t mean safest or most diversified—it just reflects the best tradeoff between risk and reward using these specific funds.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.30%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.69%

The total yield around 1.7% is modest but quite normal for a growth-oriented, globally diversified equity mix. Dividend yields, the cash paid out annually as a percentage of price, matter because they contribute a steady piece of return, especially when reinvested. The higher yields from international and small value holdings slightly boost income compared to a pure US large‑cap growth portfolio, which is a nice bonus. For someone focused mainly on long-term total return rather than immediate cash flow, this level of yield is perfectly fine. Over time, reinvesting these dividends back into the funds compounds growth, even though the headline yield number doesn’t look particularly high today.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.09%

The overall expense ratio near 0.09% is impressively low for a portfolio that includes factor-tilted funds alongside broad indexes. Costs eat into returns every single year; keeping them tiny is like permanently raising the return “speed limit” by a bit. Many actively managed mixes with similar exposures run two to five times more expensive. The use of ultra‑low‑cost core index funds paired with slightly higher‑cost small value funds is a smart tradeoff, because it keeps the blended fee very competitive. This cost structure is already in a best‑practice zone, so the main focus going forward is simply maintaining low‑fee options rather than chasing marginally cheaper alternatives that don’t change the big picture.

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