A balanced and broadly diversified portfolio with a focus on value and momentum strategies

Report created on Aug 22, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio showcases a strategic blend of domestic and international equity ETFs, with a notable emphasis on value and momentum investment strategies. The allocation spans across major and emerging markets, incorporating both large-cap and small-cap exposures. The Vanguard Total Stock Market Index Fund ETF and Vanguard Total International Stock Index Fund ETF form the core of the portfolio, complemented by specialized ETFs targeting small-cap value and quantitative momentum sectors. This composition suggests a deliberate approach to capturing growth across diverse market segments while maintaining a balanced risk profile.

Growth Info

Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 9.87%, with a maximum drawdown of -25.65%. This performance metric underscores the portfolio's ability to generate substantial returns, albeit with significant volatility. The days contributing to 90% of returns being concentrated in just 9.0 days highlight the impact of short-term gains on overall performance. Comparatively, these figures suggest a resilience and potential for recovery, aligning with the balanced risk classification.

Projection Info

Utilizing Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. With a median projected growth of 198.7% and a positive return in 917 out of 1,000 simulations, there's a strong indication of potential for significant growth. However, it's crucial to remember that these simulations are speculative and contingent on past market behaviors repeating, which is not guaranteed.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's nearly exclusive investment in stocks (99%) with a nominal cash holding (1%) positions it for growth, albeit with heightened market sensitivity. This asset class distribution is typical for portfolios aiming for higher returns over the long term but requires an investor comfortable with the associated risk levels. The absence of bonds or alternative investments limits its defensive capabilities against market volatility.

Sectors Info

  • Technology
    18%
  • Financials
    17%
  • Industrials
    16%
  • Consumer Discretionary
    13%
  • Telecommunications
    7%
  • Health Care
    7%
  • Energy
    6%
  • Basic Materials
    6%
  • Consumer Staples
    5%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation is well-diversified, with technology, financial services, and industrials leading the composition. This sector spread is indicative of a growth-oriented strategy, leveraging sectors known for innovation and economic sensitivity. However, the heavy weighting in these sectors may expose the portfolio to sector-specific risks, suggesting a need for periodic review to ensure alignment with broader market trends and risk tolerance.

Regions Info

  • North America
    57%
  • Europe Developed
    16%
  • Japan
    10%
  • Asia Emerging
    5%
  • Asia Developed
    4%
  • Australasia
    3%
  • Africa/Middle East
    2%
  • Latin America
    1%

Geographic distribution emphasizes North America and developed European markets, complemented by strategic positions in emerging markets and Japan. This global exposure enhances diversification, potentially mitigating region-specific risks while capturing growth across different economic cycles. However, the modest allocation to emerging markets might limit exposure to high-growth regions, possibly warranting a reassessment based on risk appetite and growth objectives.

Market capitalization Info

  • Large-cap
    27%
  • Mid-cap
    24%
  • Mega-cap
    24%
  • Small-cap
    15%
  • Micro-cap
    7%

The market capitalization allocation reflects a balanced approach, with investments across big, medium, mega, small, and micro-cap stocks. This diversity supports risk management by spreading exposure across companies of varying sizes, which may react differently to market changes. The presence of small and micro-cap investments indicates a higher risk-return potential, aligning with the portfolio's balanced yet growth-focused 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.

The Efficient Frontier analysis suggests that the portfolio is positioned near the optimal risk-return balance for its current asset allocation. While the portfolio is already well-structured, there's always room for refinement. Regularly reviewing and adjusting the asset allocation can help in maintaining an optimal balance between risk and return, ensuring the portfolio continues to meet investment objectives effectively.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.60%
  • Avantis® Emerging Markets Value ETF 3.90%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Alpha Architect International Quantitative Momentum ETF 3.50%
  • Alpha Architect International Quantitative Value ETF 2.50%
  • Alpha Architect U.S. Quantitative Momentum ETF 1.50%
  • Alpha Architect U.S. Quantitative Value ETF 1.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 2.14%

With a total dividend yield of 2.14%, the portfolio offers a modest income component alongside capital appreciation potential. This yield, derived from a mix of high and low dividend-paying ETFs, contributes to the portfolio's overall return, providing a buffer during market downturns. Regularly reviewing dividend performance and yields can ensure that the portfolio maintains a balanced approach to income and growth.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Alpha Architect International Quantitative Momentum ETF 0.39%
  • Alpha Architect International Quantitative Value ETF 0.39%
  • Alpha Architect U.S. Quantitative Momentum ETF 0.29%
  • Alpha Architect U.S. Quantitative Value ETF 0.29%
  • 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) 0.18%

The portfolio's total Expense Ratio (TER) of 0.18% is relatively low, enhancing its attractiveness by minimizing cost drag on returns. The variance in individual ETF costs, from 0.03% to 0.39%, highlights the importance of cost consideration in portfolio construction. Keeping costs low is crucial for maximizing long-term returns, especially in a diversified portfolio where expenses can accumulate across multiple holdings.

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