A growth-oriented portfolio with a keen focus on diversified global equities and low costs

Report created on Jul 21, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio's composition is predominantly equity-based, featuring a blend of U.S. and international stocks across various market capitalizations and sectors. With 70% allocated to broad market ETFs (Vanguard S&P 500 and Vanguard Total International Stock Index Fund), the portfolio aims for comprehensive market exposure. The inclusion of small-cap, mid-cap, and large-cap growth ETFs suggests a strategic tilt towards growth-oriented investments. This diversified approach is designed to capture growth across different economic sectors and geographies, aligning with a growth-focused investment strategy.

Growth Info

The historical performance, with a Compound Annual Growth Rate (CAGR) of 14.31%, indicates strong past returns. However, the maximum drawdown of -35.82% underscores the portfolio's vulnerability to market volatility, typical of equity-heavy investments. It's essential to understand that such volatility is a trade-off for higher potential returns. The days contributing to 90% of returns highlight the importance of staying invested during market ups and downs, as significant gains can occur unpredictably.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 515.7% in portfolio value, showcasing the potential for substantial growth. However, the broad spread between the 5th and 67th percentiles (39.1% to 805.8%) illustrates the uncertainty inherent in stock investments. These projections, based on historical data, offer a glimpse into possible future scenarios, reminding investors that past performance is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's allocation is nearly entirely in stocks, with a minimal cash position. This high equity exposure is consistent with a growth-oriented strategy but comes with higher risk and volatility. Diversification across asset classes, such as bonds or real estate, could provide a buffer against stock market fluctuations, potentially reducing overall portfolio volatility without significantly compromising long-term growth prospects.

Sectors Info

  • Technology
    23%
  • Financials
    18%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Energy
    5%
  • Basic Materials
    4%
  • Utilities
    3%
  • Real Estate
    3%

Sector allocation reveals a heavy emphasis on technology and financial services, followed by industrials and consumer cyclicals. This sector distribution is reflective of a growth-focused strategy but may increase sensitivity to economic cycles and sector-specific risks. Diversifying more evenly across sectors could help mitigate these risks while still allowing for significant growth opportunities.

Regions Info

  • North America
    67%
  • Europe Developed
    14%
  • Asia Emerging
    6%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic distribution shows a strong bias towards North America, complemented by exposure to developed European markets and emerging markets in Asia. This global diversification helps spread risk and tap into growth opportunities worldwide. However, the relatively low allocation to emerging markets may limit exposure to high-growth regions, potentially affecting the portfolio's overall growth trajectory.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    25%
  • Mid-cap
    23%
  • Small-cap
    6%
  • Micro-cap
    5%

The market capitalization breakdown indicates a balanced exposure across mega, big, and medium-sized companies, with smaller allocations to small and micro-caps. This distribution supports a growth strategy while providing a mix of stability from larger companies and growth potential from smaller firms. Adjusting allocations could further optimize the risk-return profile, potentially enhancing long-term growth.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard S&P 500 ETF
    High correlation

The high correlation observed between the Schwab U.S. Large-Cap Growth ETF and the Vanguard S&P 500 ETF suggests redundancy, limiting diversification benefits. Reducing overlap by reallocating from highly correlated assets to less correlated ones could enhance portfolio diversification, potentially improving risk-adjusted returns without sacrificing growth prospects.

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 noted redundancy between assets with high correlation. By reallocating funds from overlapping investments to underrepresented sectors, geographies, or asset classes, the portfolio could achieve a more optimal balance between risk and return. This process, grounded in the Efficient Frontier concept, aims to enhance the portfolio's potential for growth while managing volatility more effectively.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Mid-Cap Value Index Fund ETF Shares 2.20%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.83%

The portfolio's dividend yield averages 1.83%, contributing to total returns. While growth stocks typically offer lower dividends, the income generated can provide a steady cash flow, which can be reinvested for compounding effects. Considering the portfolio's growth orientation, the current dividend yield strikes a reasonable balance between income generation and reinvestment opportunities for growth.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Mid-Cap Value Index Fund ETF Shares 0.07%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.06%

The portfolio's total expense ratio (TER) of 0.06% is impressively low, maximizing net returns for investors. Keeping costs low is crucial for long-term investment success, as even small differences in fees can significantly impact compounded returns over time. This cost efficiency is a strong aspect of the portfolio, supporting better performance through minimized drag on returns.

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