A growth-focused portfolio with a strong dividend strategy and diversified exposure

Report created on Aug 7, 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 showcases a significant emphasis on dividend-paying stocks, with 50% allocated to the ProShares S&P 500 Dividend Aristocrats ETF. The remaining assets are spread across broad market, international, growth, and small cap value ETFs, indicating a strategic approach to growth with an underpinning of income generation. This composition aligns with a growth profile yet leans heavily on established, dividend-paying companies, balancing potential volatility with steady income.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.01%, with a maximum drawdown of -35.46%. These figures suggest resilience and an ability to recover from market downturns, attributed to its diversified nature and focus on stable, dividend-paying stocks. However, the significant drawdown highlights the inherent risks in equity-focused portfolios, emphasizing the importance of understanding volatility and market cycles.

Projection Info

Monte Carlo simulations suggest a wide range of outcomes, with a median projected growth of 460.8% under current strategies. While most simulations predict positive returns, the broad spread from the 5th to 67th percentiles underscores market uncertainty and the impact of asset allocation choices. These projections, while informative, are based on historical data and cannot guarantee future performance, highlighting the need for periodic portfolio review and adjustment.

Asset classes Info

  • Stocks
    100%

With 100% of the portfolio allocated to stocks, there's a clear growth orientation. While this can offer higher returns, it also comes with increased volatility compared to portfolios with bond or cash allocations. Diversification across different types of stocks (e.g., international, small-cap) mitigates some risk, but the lack of non-equity investments may expose the portfolio to market downturns more acutely.

Sectors Info

  • Industrials
    16%
  • Technology
    15%
  • Financials
    15%
  • Consumer Staples
    14%
  • Consumer Discretionary
    9%
  • Health Care
    9%
  • Basic Materials
    7%
  • Energy
    4%
  • Telecommunications
    4%
  • Utilities
    4%
  • Real Estate
    3%

The sector allocation spans industrials, technology, financial services, and consumer defensive, among others, providing a balanced exposure across the economy. This diversification helps manage sector-specific risks and capitalize on growth opportunities in different areas of the market. However, the heavy emphasis on industrials and technology mirrors broader market trends, potentially increasing volatility during sector rotations or economic shifts.

Regions Info

  • North America
    86%
  • Europe Developed
    7%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%
  • Australasia
    1%

With 86% of assets in North America and modest allocations to developed Europe and emerging Asia, the portfolio has a strong domestic focus. While this may align with the investor's familiarity and confidence in the U.S. market, it also limits exposure to global growth opportunities and diversification benefits, particularly in emerging markets which can offer high growth potential albeit with higher risk.

Market capitalization Info

  • Mid-cap
    32%
  • Large-cap
    28%
  • Mega-cap
    22%
  • Small-cap
    11%
  • Micro-cap
    6%

The mix of medium, big, mega, small, and micro-cap stocks indicates a comprehensive approach to capturing growth across different company sizes. This variety can enhance returns and reduce risk, as smaller companies often offer higher growth potential while larger companies provide stability. However, the specific allocation should be revisited to ensure it aligns with the investor's risk tolerance and market outlook.

Redundant positions Info

  • Vanguard Growth Index Fund ETF Shares
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation between the Vanguard Growth Index Fund ETF Shares and Vanguard Total Stock Market Index Fund ETF Shares suggests redundancy, limiting diversification benefits. In periods of market downturn, this overlap could amplify losses, indicating a need to reassess asset allocation for better risk management.

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.

Optimizing the portfolio involves addressing the overlap between highly correlated assets to enhance diversification. By reallocating funds from overlapping assets to underrepresented sectors or geographies, the portfolio can achieve a more efficient risk-return profile. This step is essential for improving resilience against market volatility and capitalizing on a broader range of investment opportunities.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • ProShares S&P 500 Dividend Aristocrats ETF 2.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.81%

The portfolio's average dividend yield of 1.81% contributes to its total return, offering a balance of income and growth. This strategy is particularly appealing for investors seeking steady cash flow in addition to capital appreciation. However, the focus on dividends should not overshadow the potential for growth in non-dividend-paying sectors, which may offer higher returns.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • ProShares S&P 500 Dividend Aristocrats ETF 0.35%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.22%

With an average Total Expense Ratio (TER) of 0.22%, the portfolio is efficiently managed, minimizing the drag on returns due to costs. This is crucial for long-term growth, as lower costs compound over time, leading to significantly higher net returns. The portfolio's cost-effective structure is commendable, aligning with best practices for maximizing investor returns.

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