Balanced global portfolio with a strategic blend of growth and value ETFs

Report created on Jul 28, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is a well-structured blend of global stock ETFs, emphasizing both growth and value strategies across various geographies. With half of the portfolio in a Total World Stock Index Fund, it aims for broad market exposure, complemented by targeted investments in international value, developed and US momentum, and growth and value indices. This diversified approach is designed to capture market upside while mitigating sector-specific risks, though it leans heavily on equities, indicating a moderate risk profile.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 11.60%, with a maximum drawdown of -24.57%. This performance suggests resilience in volatile markets, with significant returns concentrated in short periods. While past performance is a useful indicator, it's essential to remember it doesn't guarantee future results. Considering the portfolio's balanced approach, its historical performance aligns with expectations for moderate-risk investments.

Projection Info

Monte Carlo simulations, which forecast potential future outcomes based on historical data, suggest a wide range of possible performances for this portfolio. With a median projected growth of 435% and a high likelihood of positive returns, the portfolio appears well-positioned for growth. However, the simulations also highlight the inherent uncertainty in investing, underscoring the importance of maintaining a diversified and balanced approach.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely invested in stocks (99%), with a minimal cash reserve (1%). This allocation reflects a growth-oriented strategy with a moderate risk appetite. While the heavy stock concentration can offer significant growth potential, it also increases volatility and risk. Diversifying across different asset classes, such as bonds or real estate, could provide additional stability, especially in turbulent markets.

Sectors Info

  • Financials
    22%
  • Technology
    21%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Telecommunications
    8%
  • Health Care
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    4%
  • Utilities
    3%
  • Real Estate
    2%

Sector allocation shows a strong emphasis on Financial Services and Technology, constituting 43% of the portfolio. This concentration in high-growth areas can offer substantial returns but also exposes the portfolio to sector-specific downturns. The presence of Industrials, Consumer Cyclicals, and a mix of other sectors helps balance this risk, though investors should regularly review sector exposures to ensure alignment with their risk tolerance and market outlook.

Regions Info

  • North America
    65%
  • Europe Developed
    19%
  • Japan
    6%
  • Asia Emerging
    3%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

With 65% of assets in North America and significant investments in developed Europe and Japan, the portfolio has a strong foundation in stable, developed markets. However, the relatively low exposure to emerging markets (4%) and other regions might limit growth opportunities and diversification benefits. Increasing allocations to these areas could enhance global diversification and access to high-growth potential.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    35%
  • Mid-cap
    17%
  • Small-cap
    3%

The focus on Mega (44%) and Big (35%) cap stocks suggests a preference for stability and established companies, which is typical for a balanced-risk profile. However, the relatively small allocation to Medium, Small, and Micro cap stocks (20% combined) indicates potential underutilization of growth opportunities in these segments. Considering a slight increase in smaller cap investments could enhance growth prospects while introducing manageable risk.

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 analysis suggests an optimal portfolio with an 18.22% expected return at a slightly higher risk level (18.90%). While the current portfolio performs well, there's room for optimization to potentially enhance returns without assuming disproportionate risk. This might involve adjusting asset allocations or exploring new opportunities within the existing risk framework.

Dividends Info

  • Dimensional International Value ETF 3.30%
  • Invesco S&P International Developed Momentum ETF 2.00%
  • 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) 1.70%

The portfolio's dividend yield stands at 1.70%, contributing to its total return. This yield is a blend of higher-yielding value-focused ETFs and lower-yielding growth-oriented funds. For investors seeking income, this portfolio offers a moderate dividend stream while still prioritizing capital appreciation. Regularly reassessing the balance between growth and income can ensure it continues to meet changing financial goals and market conditions.

Ongoing product costs Info

  • Dimensional International Value ETF 0.27%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • 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 efficiently managed, minimizing the drag on returns caused by fees. This low cost is commendable, especially given the broad diversification and international exposure of the portfolio. Investors should continue to monitor costs, as even small increases can compound and significantly impact long-term returns.

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