A balanced single-ETF portfolio with strong historic performance and broad sector diversification

Report created on Jan 19, 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 consists entirely of the Avantis All Equity Markets ETF, a single ETF that covers a wide range of sectors and geographic regions. This structure provides a broad diversification within one fund, which is beneficial for simplicity and ease of management. While the ETF offers exposure to various asset classes, the heavy reliance on a single fund might limit flexibility and adaptability to market changes. Consider diversifying further by incorporating additional funds or asset classes to reduce potential risks associated with over-concentration in one ETF.

Growth Info

Historically, the portfolio has performed exceptionally well, boasting a Compound Annual Growth Rate (CAGR) of 20.01%. This impressive growth rate indicates strong past performance, outpacing many benchmarks. However, it's essential to remember that past performance doesn't guarantee future results. The portfolio's maximum drawdown of -11.15% suggests it has weathered market downturns relatively well. To maintain such performance, it's crucial to regularly review and potentially rebalance the portfolio to adapt to changing market conditions.

Projection Info

Forward projections using Monte Carlo simulations show promising potential outcomes, with an annualized return of 22.2%. Monte Carlo simulations use historical data to predict a range of possible future returns, offering insight into potential risks and rewards. While these projections are optimistic, they rely on historical data, which may not account for future market conditions. Regularly revisiting these projections can help manage expectations and adjust strategies as needed to align with evolving financial goals and market environments.

Asset classes Info

  • Stocks
    100%

The portfolio is predominantly composed of stocks, with a negligible allocation to bonds and other asset classes. This heavy stock allocation aligns with a growth-oriented strategy but may increase volatility. Diversifying across more asset classes, such as bonds or alternative investments, could enhance stability and reduce risk during market downturns. Balancing different asset classes can provide a buffer against market fluctuations, potentially leading to more consistent returns over time.

Sectors Info

  • Financials
    20%
  • Technology
    16%
  • Consumer Discretionary
    14%
  • Industrials
    14%
  • Energy
    8%
  • Telecommunications
    7%
  • Health Care
    6%
  • Basic Materials
    5%
  • Consumer Staples
    5%
  • Real Estate
    3%
  • Utilities
    2%

The portfolio is well-diversified across multiple sectors, with financial services, technology, and consumer cyclicals being the most prominent. This sectoral diversification helps mitigate risks associated with sector-specific downturns. However, the concentration in these sectors may expose the portfolio to higher volatility during economic shifts affecting these industries. Regularly reviewing sector allocations and adjusting as necessary can help maintain a balanced risk exposure and capitalize on emerging sector trends.

Regions Info

  • North America
    74%
  • Europe Developed
    9%
  • Asia Emerging
    5%
  • Asia Developed
    4%
  • Japan
    4%
  • Australasia
    1%
  • Latin America
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is heavily weighted towards North America, with notable exposure to Europe and Asia. This geographic diversification provides a broad market exposure, which can help mitigate risks associated with regional economic downturns. However, the significant North American focus may limit benefits from growth opportunities in underrepresented regions. Consider evaluating geographic allocations to ensure they align with global economic trends and personal investment goals, potentially increasing exposure to emerging markets.

Dividends Info

  • Avantis All Equity Markets ETF 0.80%
  • Weighted yield (per year) 0.80%

The portfolio's dividend yield is relatively modest at 0.8%, reflecting its focus on growth rather than income. Dividends can provide a steady income stream and contribute to total returns, which is valuable for income-focused investors. If income generation is a priority, consider integrating dividend-focused investments or funds to boost yield. Balancing growth and income can offer a more comprehensive approach to achieving financial objectives.

Ongoing product costs Info

  • Avantis All Equity Markets ETF 0.23%
  • Weighted costs total (per year) 0.23%

The portfolio's total expense ratio (TER) is 0.23%, which is relatively low and supports better long-term performance. Keeping costs low is crucial, as high fees can erode returns over time. By maintaining a low-cost structure, the portfolio is well-positioned to maximize returns. To further optimize costs, periodically review expense ratios and explore lower-cost alternatives if available, ensuring that the portfolio remains cost-efficient and aligned with financial goals.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey