Balanced and broadly diversified portfolio with a strategic focus on global equities

Report created on Jul 27, 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 is structured around a substantial allocation to global equities, primarily through ETFs, with a notable emphasis on both growth and value strategies across various market capitalizations. The majority stake in the Vanguard Total World Stock Index Fund ETF Shares provides a solid foundation, ensuring broad exposure to global markets. The balanced mix between growth, value, large-cap, and emerging markets indicates a well-considered approach to diversification, aiming to capture different aspects of market movements and opportunities.

Growth Info

The portfolio's historical performance, with a Compound Annual Growth Rate (CAGR) of 11.86%, showcases its ability to generate strong returns over time. The maximum drawdown of -25.23% suggests that while the portfolio is capable of significant growth, it also faces substantial volatility, a common trait for equity-heavy allocations. The days that make up 90% of returns being limited to 12.0 highlights the impact of short-term, significant market movements on overall performance, underscoring the importance of staying invested through market cycles.

Projection Info

Forward projections utilizing Monte Carlo simulation, which models a range of potential future outcomes based on historical data, suggest a wide range of possible portfolio values. With the 50th percentile at a 442.9% increase, the projection indicates a strong potential for growth. However, the broad spread between the 5th and 67th percentiles (52.3% to 630.1%) highlights the inherent uncertainty in these projections, emphasizing the need for investors to be prepared for a variety of outcomes.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's allocation is almost entirely in stocks (99%), with a minimal cash holding. This stock-heavy approach aligns with its growth-oriented strategy but comes with higher volatility. The absence of bonds or other fixed-income assets limits the portfolio's ability to hedge against stock market downturns, potentially increasing the risk during economic contractions.

Sectors Info

  • Technology
    24%
  • Financials
    18%
  • Consumer Discretionary
    11%
  • Industrials
    11%
  • Health Care
    8%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Basic Materials
    5%
  • Energy
    4%
  • Utilities
    2%
  • Real Estate
    2%

The sectoral allocation shows a strong preference for technology and financial services, which are sectors known for their growth potential but also for their volatility. The presence in consumer cyclicals and industrials further diversifies the portfolio, although the heavy concentration in technology could expose the portfolio to sector-specific risks, such as regulatory changes or rapid technological obsolescence.

Regions Info

  • North America
    67%
  • Europe Developed
    13%
  • Japan
    6%
  • Asia Emerging
    6%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic exposure is predominantly in North America (67%), with significant allocations to developed Europe and emerging markets in Asia. This geographic distribution supports diversification, reducing the portfolio’s vulnerability to region-specific economic downturns. However, the underrepresentation of regions like Latin America and Africa/Middle East suggests potential missed opportunities in frontier markets.

Market capitalization Info

  • Mega-cap
    40%
  • Large-cap
    32%
  • Mid-cap
    20%
  • Small-cap
    5%
  • Micro-cap
    1%

The market capitalization breakdown shows a balanced exposure across mega, big, and medium-cap stocks, which contributes to the portfolio's robust risk management framework. The limited but strategic allocation to small and micro-cap stocks introduces higher growth potential, albeit with increased risk.

Redundant positions Info

  • Avantis® International Small Cap Value ETF
    Dimensional International Value ETF
    High correlation
  • Schwab U.S. Large-Cap Growth ETF
    Vanguard Russell 1000 Growth Index Fund ETF Shares
    High correlation

The analysis identifies highly correlated assets within the portfolio, particularly among international ETFs and between certain U.S. large-cap growth ETFs. This redundancy could dilute the diversification benefits, suggesting an opportunity to refine the portfolio by reallocating or replacing overlapping assets to enhance overall efficiency.

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 the portfolio could be optimized by addressing the identified asset correlation issues. By reducing overlap in highly correlated ETFs, the portfolio can achieve a more efficient risk-return profile. This optimization process focuses on reallocating investments to enhance diversification without necessarily increasing overall risk.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.70%
  • Avantis® Emerging Markets Value ETF 3.90%
  • Dimensional International Value ETF 3.30%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Russell 1000 Growth Index Fund ETF Shares 0.50%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Vanguard Value Index Fund ETF Shares 2.10%
  • Weighted yield (per year) 1.79%

The portfolio’s dividend yield stands at 1.79%, contributing to its total return. The varying yields across ETFs, from high in value-focused international ETFs to low in growth-oriented U.S. ETFs, reflect the trade-off between income and growth strategies. For investors prioritizing income, rebalancing towards higher-yielding assets could be beneficial.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Value ETF 0.36%
  • Dimensional International Value ETF 0.27%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Russell 1000 Growth Index Fund ETF Shares 0.08%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Vanguard Value Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.11%

With a total expense ratio (TER) of 0.11%, the portfolio is cost-efficient, minimizing the drag on returns due to fees. This low cost is particularly impressive given the broad diversification and global exposure of the portfolio, highlighting the effective use of low-cost ETFs to build a diversified investment strategy.

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