Balanced growth-focused portfolio with an emphasis on global equities and a moderate risk profile

Report created on Jul 19, 2025

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

Positions

This portfolio is evenly split across four Avantis® ETFs, each representing a key segment of the global equity market: international, emerging markets, U.S. broad market, and U.S. small-cap value equities. Such a structure underlines a strategic approach to diversification, targeting both geographic and market capitalization dimensions. The equal weighting suggests a deliberate choice to not overemphasize any single market or region, aligning with a growth-oriented risk profile.

Growth Info

The portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 13.74%, with a maximum drawdown of -39.39%. These figures indicate a robust growth trajectory, albeit with significant volatility. The days contributing most to returns highlight the portfolio's sensitivity to market movements. Comparing these metrics to relevant benchmarks can offer insights into performance relative to broader market trends, emphasizing the balance between risk and reward in growth-oriented strategies.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, suggest a wide range of outcomes for this portfolio. While the majority of simulations forecast positive returns, the variance between the 5th and 67th percentiles underscores the inherent uncertainty in predicting market movements. This analysis reinforces the need for investors to consider a range of potential outcomes when planning for the future.

Asset classes Info

  • Stocks
    100%

With 100% of the portfolio allocated to stocks, this investment strategy is clearly growth-focused, leveraging the potential for higher returns associated with equity investments. However, this concentration also increases exposure to market volatility. Diversifying across different asset classes, such as bonds or real estate, could provide a buffer during market downturns, contributing to a more balanced risk-return profile.

Sectors Info

  • Financials
    23%
  • Technology
    15%
  • Industrials
    14%
  • Consumer Discretionary
    13%
  • Energy
    8%
  • Basic Materials
    6%
  • Telecommunications
    6%
  • Health Care
    5%
  • Consumer Staples
    5%
  • Utilities
    2%
  • Real Estate
    1%

The sectoral allocation reflects a broad exposure across the economy, with a notable emphasis on financial services, technology, and industrials. This composition is conducive to capturing growth in key areas of innovation and economic activity. However, the substantial allocation to financial services may introduce sector-specific risks, warranting a review to ensure alignment with the investor's risk tolerance and long-term objectives.

Regions Info

  • North America
    51%
  • Europe Developed
    15%
  • Asia Emerging
    12%
  • Asia Developed
    10%
  • Japan
    6%
  • Latin America
    2%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Europe Emerging
    1%

Geographic diversification is a strength of this portfolio, with significant exposure to North America, developed Europe, and emerging markets in Asia. This global footprint can mitigate region-specific risks and capitalize on growth opportunities worldwide. Nonetheless, the portfolio may benefit from increased exposure to underrepresented regions, such as Latin America and Africa/Middle East, to further enhance diversification.

Market capitalization Info

  • Mega-cap
    25%
  • Large-cap
    21%
  • Mid-cap
    17%
  • Small-cap
    17%
  • Micro-cap
    14%

The market capitalization breakdown showcases a balanced approach, spanning mega to micro-cap stocks. This strategy is designed to blend the stability of large-cap companies with the growth potential of smaller caps. However, the relatively high exposure to micro-cap stocks may elevate volatility, suggesting a potential area for rebalancing in line with the investor's risk appetite.

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 portfolio's current allocation suggests a well-considered balance between risk and return, potentially aligning with the Efficient Frontier—a concept indicating the optimal risk-return trade-off. However, continuous review and potential rebalancing towards assets with lower correlation could further optimize performance, ensuring the portfolio remains aligned with the investor's evolving risk tolerance and financial goals.

Dividends Info

  • Avantis® International Equity ETF 2.80%
  • Avantis® Emerging Markets Equity ETF 2.90%
  • Avantis® U.S. Equity ETF 1.20%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Weighted yield (per year) 2.15%

The portfolio's overall dividend yield of 2.15% contributes to its total return, blending growth and income elements. The higher yields from the international and emerging markets ETFs complement the lower yields from the U.S. equity positions, illustrating a strategic approach to income generation across different market conditions.

Ongoing product costs Info

  • Avantis® International Equity ETF 0.23%
  • Avantis® Emerging Markets Equity ETF 0.33%
  • Avantis® U.S. Equity ETF 0.15%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Weighted costs total (per year) 0.24%

With a total expense ratio (TER) of 0.24%, the portfolio benefits from relatively low costs, which is crucial for enhancing long-term returns. The individual ETF fees are competitive, especially considering the broad diversification and access to global markets they offer. Maintaining low investment costs is a fundamental principle for efficient portfolio management.

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