A growth-focused portfolio with broad diversification and strong historical performance

Report created on Jan 12, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is primarily composed of equities, with a strong focus on U.S. stocks, accounting for 75% of the allocation. This is complemented by international equities, making up 25%. Such a structure is common in growth-oriented portfolios, aiming to harness the potential of both domestic and international markets. While this composition is well-aligned with growth objectives, it lacks exposure to bonds and other asset classes, which might help in risk mitigation. To enhance diversification, consider incorporating a small percentage of fixed-income assets.

Growth Info

Historically, the portfolio has delivered a robust CAGR of 14.35%, indicating strong growth potential. This performance exceeds many benchmark averages, suggesting effective asset allocation and market conditions. However, the maximum drawdown of -36.96% highlights the potential volatility associated with a growth-focused strategy. While past performance can guide expectations, it's important to remember that it doesn't guarantee future results. To manage potential downturns, consider regular portfolio reviews and adjustments based on market conditions.

Projection Info

Forward projections using Monte Carlo simulations indicate a wide range of possible outcomes, with a median growth of 313.84%. Monte Carlo analysis uses historical data to simulate future performance under various conditions, providing insight into potential risks and returns. Despite the optimistic median projection, the range of outcomes emphasizes the uncertainty inherent in investing. Regularly reassessing your risk tolerance and investment goals can help align your strategy with your financial objectives.

Asset classes Info

  • Stocks
    100%

The portfolio is heavily weighted towards stocks, constituting over 99% of the allocation. This concentration is typical for growth portfolios but may expose the portfolio to higher volatility. Diversifying into other asset classes like bonds or real estate could provide more stability and reduce risk. Comparing this allocation to common benchmarks, which often include a mix of equities and fixed income, suggests room for improvement in diversification.

Sectors Info

  • Technology
    22%
  • Financials
    17%
  • Industrials
    13%
  • Consumer Discretionary
    12%
  • Health Care
    9%
  • Telecommunications
    6%
  • Energy
    6%
  • Consumer Staples
    5%
  • Basic Materials
    5%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation is well-distributed, with significant exposure to technology, financial services, and industrials. This balance aligns with typical growth strategies, leveraging sectors with high growth potential. However, technology's dominance at nearly 22% might introduce volatility, especially during market corrections. While the sector composition is generally diversified, monitoring sector trends and adjusting allocations can help manage risks associated with sector-specific downturns.

Regions Info

  • North America
    77%
  • Europe Developed
    10%
  • Japan
    6%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    2%
  • Africa/Middle East
    1%

Geographically, the portfolio is heavily weighted towards North America, accounting for over 76% of the allocation. While this reflects the strength of U.S. markets, it limits exposure to other regions that may offer growth opportunities. Comparatively, benchmarks often include more balanced geographic exposure. To enhance diversification, consider increasing allocations to underrepresented regions, potentially capturing growth in emerging markets.

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.

While the portfolio is primarily growth-focused, optimizing for risk versus return using the Efficient Frontier could enhance performance. This approach identifies the best possible risk-return ratio for a given set of assets. However, optimization doesn't necessarily imply diversification or other goals. Regularly reviewing asset allocations and adjusting them to maintain efficiency can help achieve a balanced risk-return profile.

Dividends Info

  • Avantis® International Small Cap Value ETF 4.40%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 3.40%
  • Weighted yield (per year) 1.97%

With a total dividend yield of 1.97%, the portfolio provides a modest income stream. Dividends can enhance total returns, especially during periods of low capital appreciation. The yield is primarily driven by the Avantis International Small Cap Value ETF and Vanguard Total International Stock Index Fund ETF Shares. For investors seeking income alongside growth, this yield is a positive feature. However, for those prioritizing income, exploring higher-yielding options might be beneficial.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • 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 0.08%
  • Weighted costs total (per year) 0.10%

The portfolio's total expense ratio (TER) is impressively low at 0.1%, supporting better long-term performance by minimizing costs. Lower fees mean more of your returns stay in your pocket, compounding over time. This cost efficiency is a strong feature of the portfolio, aligning with best practices in investment management. Continuing to monitor and manage costs can further enhance net returns, especially in a long-term growth strategy.

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