A growth-focused portfolio with a blend of U.S. and international ETFs and a balanced sector exposure
Report created on Aug 7, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 35.00% -
SP SPDR® Portfolio S&P 500 ETF
SPLG - US78464A8541 35.00% -
DF Dimensional International Value ETF
DFIV - US25434V8072 15.00% -
SC iShares MSCI EAFE Small-Cap ETF
SCZ - US4642882736 15.00%
This portfolio is structured around four ETFs, emphasizing both U.S. and international markets with a strong tilt towards small-cap value and S&P 500 index funds. The allocation is split evenly between U.S. small-cap value and S&P 500 ETFs, each constituting 35% of the portfolio, while international exposure through Dimensional International Value and iShares MSCI EAFE Small-Cap ETFs makes up the remaining 30%. This composition underlines a strategic balance between domestic and international equities, aiming to capture growth across diverse market segments and geographies.
Growth
Historically, the portfolio has exhibited a Compound Annual Growth Rate (CAGR) of 10.13%, with a maximum drawdown of -22.95%. These metrics suggest a robust growth trajectory, albeit with significant volatility, as indicated by the drawdown. The days contributing to 90% of returns being limited to 9.0 highlight the impact of short-term, high-gain periods on overall performance. Benchmarking these figures against similar growth-oriented portfolios can provide further insight into relative performance strengths and weaknesses.
Projection
Monte Carlo simulations, based on 1,000 iterations, project a wide range of potential outcomes, from a 5th percentile loss of -13.1% to a 67th percentile gain of 312.4%. The median outcome suggests a potential 198.3% return. While these projections offer a glimpse into possible future states, they inherently carry limitations due to their reliance on historical data, which may not accurately predict future market behaviors.
Asset classes
- Stocks 100%
The portfolio's exclusive investment in stocks, without allocation to cash or other asset classes, positions it firmly within a high-growth, high-risk strategy. This singular focus on equities enhances potential returns but also increases vulnerability to market volatility. Diversification across different asset classes could offer a buffer against such volatility, suggesting a possible area for strategic adjustment.
Sectors
- Financials 21%
- Technology 16%
- Industrials 14%
- Consumer Discretionary 14%
- Energy 9%
- Health Care 6%
- Basic Materials 6%
- Telecommunications 5%
- Consumer Staples 5%
- Real Estate 3%
- Utilities 2%
Sector allocations are broadly diversified, with the highest concentrations in financial services, technology, industrials, and consumer cyclicals. This sectoral spread is indicative of a growth-oriented strategy but also exposes the portfolio to cyclical and sector-specific risks. The significant allocations to technology and consumer cyclicals, in particular, suggest a bet on sectors that can offer high returns but may also experience greater volatility.
Regions
- North America 71%
- Europe Developed 16%
- Japan 9%
- Australasia 2%
- Asia Developed 1%
- Africa/Middle East 1%
Geographically, the portfolio is heavily weighted towards North America (71%), with meaningful allocations to developed European markets and Japan. This distribution reflects a conservative approach to international diversification, focusing on developed markets over emerging ones. While this may reduce exposure to geopolitical and currency risks associated with emerging markets, it may also limit potential for higher growth rates those markets can offer.
Market capitalization
- Mega-cap 21%
- Small-cap 21%
- Large-cap 20%
- Mid-cap 20%
- Micro-cap 18%
The balanced exposure across mega, big, medium, small, and micro-cap stocks demonstrates a comprehensive market cap strategy aiming to capture growth across the spectrum of company sizes. This diversification can mitigate risk and enhance potential returns by spreading exposure across different stages of company growth, from established giants to emerging players.
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.
Optimization analysis suggests that a more efficient portfolio, maintaining the same risk level, could achieve an expected return of 12.54%. This indicates room for improvement in the current allocation to enhance returns without increasing risk. Adjusting asset allocation or diversifying further within asset classes could move the portfolio closer to the efficient frontier, optimizing the risk-return trade-off.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.70%
- Dimensional International Value ETF 3.30%
- iShares MSCI EAFE Small-Cap ETF 3.10%
- SPDR® Portfolio S&P 500 ETF 1.20%
- Weighted yield (per year) 1.98%
With an overall dividend yield of 1.98%, the portfolio offers a modest income component alongside its growth-oriented strategy. This yield, driven primarily by the international value and small-cap ETFs, contributes to total returns and provides a cushion during market dips. However, the focus remains on capital appreciation, with income playing a secondary role.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- Dimensional International Value ETF 0.27%
- iShares MSCI EAFE Small-Cap ETF 0.40%
- SPDR® Portfolio S&P 500 ETF 0.02%
- Weighted costs total (per year) 0.20%
The portfolio's average total expense ratio (TER) of 0.20% is impressively low, especially considering the broad international exposure and the inclusion of specialized small-cap ETFs. This cost efficiency supports better net returns over the long term, underlining the portfolio's well-structured approach to balancing growth potential against investment costs.
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