A low cost growth focused portfolio with broad global stocks and heavy tilt to United States

Report created on Dec 18, 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 is very straightforward: roughly 70 percent in US stocks, 30 percent in non US stocks, all through broad index style ETFs, with a small extra tilt toward US equities via the Avantis fund. Compared with a typical global benchmark, it leans more toward the US than the world market does. That’s common for US based investors and has worked well recently, but it does create a home bias. If the goal is pure global market exposure, trimming the overlap between the two US funds and nudging a bit more into international could create a cleaner and more benchmark like structure.

Growth Info

Historically, this mix delivered a very strong compound annual growth rate (CAGR) of about 14.6 percent, meaning a 10,000 dollar investment would have grown to roughly 38,000 over 10 years if that rate persisted. That’s well above long term global equity averages, helped by a big allocation to US stocks, which have outperformed many regions in the past decade. The flip side is a max drawdown of around 35 percent, showing that deep temporary losses are part of the ride. It’s important to remember past performance only shows how this mix handled previous markets and can’t guarantee anything about the next cycle.

Projection Info

The Monte Carlo analysis runs 1,000 simulations using historical return and volatility patterns to imagine many possible futures. Think of it like rolling loaded dice based on past data: you see a range of outcomes, not a single forecast. The median outcome shows about a 4.7 times growth, while even the pessimistic 5th percentile still ends higher than today, and over 98 percent of paths are positive. This is very consistent with a growth oriented equity strategy. Still, simulations rely on history behaving “similarly” in the future, which may not hold if markets, interest rates, or global conditions shift in unusual ways.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost pure stock at 99 percent, with just a sliver in cash. That’s why the risk score lands at 5 out of 7: it’s designed for growth, not capital stability. Compared with more balanced benchmarks that mix in bonds or other defensive assets, this setup will likely swing more during market turbulence but also has higher long term return potential. For someone with a long time horizon and solid tolerance for big ups and downs, this equity heavy tilt is aligned with growth objectives. Anyone needing near term withdrawals might consider adding a modest allocation to more stable assets as a volatility buffer.

Sectors Info

  • Technology
    28%
  • Financials
    16%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    9%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

Sector exposure closely mirrors broad global equity indexes: strong weights in technology, financials, industrials, consumer areas, and healthcare, with smaller slices in energy, materials, utilities, and real estate. This alignment is a positive sign, since it avoids big bets on any single industry beyond what the market already does. The tech heavy exposure (around the high twenties) means returns can be sensitive to interest rate changes or shifts in market sentiment toward growth companies, but that’s true for most modern index based portfolios. Overall, this sector mix is well balanced and aligns closely with global standards, offering healthy diversification across economic drivers.

Regions Info

  • North America
    72%
  • Europe Developed
    11%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio skews heavily toward North America at about 72 percent, with the rest spread across Europe, Japan, developed Asia, and smaller allocations to emerging markets and other regions. This is more US tilted than a pure global market cap benchmark, which generally has closer to 60 percent in US stocks. That home bias has been rewarded lately, but it also increases exposure to US specific risks like policy shifts or prolonged underperformance compared with the rest of the world. Gradually moving a bit more toward non US exposure would further spread geopolitical and currency risk while still keeping the US as the core anchor.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    30%
  • Mid-cap
    19%
  • Small-cap
    6%
  • Micro-cap
    2%

The holdings are dominated by large companies, with roughly 72 percent in mega and big caps, 19 percent in mid caps, and about 8 percent in small and micro caps. This reflects how the overall stock market is structured and is typical for broad index funds. Large caps usually bring more stability and liquidity, while smaller companies add growth potential and extra volatility. This size mix is well in line with common benchmarks, so it doesn’t take extreme bets on tiny or speculative names. Anyone wanting a bit more return potential (and risk) could tilt incrementally toward smaller companies, but the current setup is nicely mainstream.

Redundant positions Info

  • Avantis® U.S. Equity ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The two US funds Avantis U.S. Equity and the Vanguard Total Stock Market ETF are highly correlated, meaning they tend to move in the same direction at similar times. Correlation is just a measure of how much two assets move together; when it’s very high, holding both usually doesn’t add much diversification. That overlap is why these positions function a bit like a single, slightly tilted US sleeve rather than two separate risk buckets. If the goal is to simplify and boost diversification, reducing redundant US exposure and reallocating that slice into something less correlated could strengthen the overall risk profile without changing the broad strategy.

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.

From an Efficient Frontier perspective (the curve showing the best possible risk return combos for a given set of assets), this portfolio sits close to a high growth, high volatility point. Efficiency here simply means getting the most expected return for each unit of risk, not perfection in every dimension. Because the two US funds are so correlated, shifting some weight from the overlapping position into either more international stocks or a small stabilizing asset could move the portfolio slightly closer to that efficient curve. Any optimization would stay within the current broad equity framework, just fine tuning weights rather than introducing exotic new exposures.

Dividends Info

  • Avantis® U.S. Equity ETF 1.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.58%

The overall dividend yield of about 1.6 percent is modest but normal for a growth leaning global equity mix, with international holdings contributing a somewhat higher yield than US ones. Dividends can be thought of as your “paycheck” from the portfolio, while price changes are the “bonus.” For long term accumulators who reinvest, these payouts quietly boost total return as they buy more shares on autopilot. For people counting on current income, this yield alone probably won’t cover substantial spending needs, so it functions more as a nice supplement than a primary cash flow source. The yield level also lines up well with broad equity benchmarks today.

Ongoing product costs Info

  • Avantis® U.S. Equity ETF 0.15%
  • 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) 0.05%

The total expense ratio around 0.05 percent is impressively low, especially for a globally diversified equity portfolio. Costs are one of the few things investors can control, and shaving fractions of a percent can add tens of thousands over decades due to compounding. The Vanguard funds are especially cheap, and even the Avantis fund’s 0.15 percent fee is modest by active or factor tilted standards. This cost structure strongly supports better long term performance relative to higher fee setups. If anything, the main cost related question is whether the extra Avantis fee and overlap meaningfully improves the risk return profile versus a simpler two fund approach.

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