A balanced yet concentrated portfolio with strong historical returns and moderate geographic diversity

Report created on Dec 30, 2024

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 entirely invested in the Avantis All Equity Markets ETF, making it heavily reliant on a single asset type. While this ETF offers broad exposure across various sectors and regions, the lack of diversification into other asset classes such as bonds or real estate could increase vulnerability during market downturns. A more balanced portfolio typically includes a mix of stocks, bonds, and other assets to manage risk effectively. Consider diversifying into additional asset classes to enhance stability and reduce reliance on equity market performance.

Growth Info

Historically, the portfolio has demonstrated impressive returns with a Compound Annual Growth Rate (CAGR) of 19.76%. This performance outpaces many benchmarks, indicating strong historical growth. However, the maximum drawdown of -11.15% highlights potential volatility. While past performance is a helpful indicator, it's important to remember that it does not guarantee future results. Regularly reviewing performance against benchmarks can ensure the portfolio remains on track to meet your financial goals.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, indicate potential strong growth with a median return of 1,411.61%. Although these projections are promising, they are based on past market conditions and should be interpreted with caution. The simulations suggest a high likelihood of positive returns, but market dynamics can change. Regularly reassessing assumptions and adjusting the portfolio in response to new information can help maintain alignment with investment objectives.

Asset classes Info

  • Stocks
    100%

The portfolio is nearly entirely composed of stocks, with negligible allocations to cash, bonds, and other asset classes. This concentration in equities can offer high growth potential but also increases exposure to market volatility. A more diversified allocation, including bonds or other asset classes, can help mitigate risk and provide more stable returns. Consider expanding into different asset classes to achieve a more balanced risk-return profile and enhance overall resilience.

Sectors Info

  • Financials
    20%
  • Technology
    15%
  • Industrials
    14%
  • Consumer Discretionary
    14%
  • Energy
    8%
  • Telecommunications
    7%
  • Health Care
    6%
  • Basic Materials
    5%
  • Consumer Staples
    5%
  • Real Estate
    3%
  • Utilities
    2%

Sector allocation is well-distributed, with significant exposure to Financial Services, Technology, and Industrials. This balance aligns closely with common benchmarks, offering diversification across various economic segments. However, the portfolio's concentration in certain sectors could lead to increased volatility during sector-specific downturns. Regularly reviewing sector allocations and adjusting them as needed can help manage risk and capitalize on emerging 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%

The portfolio has a strong focus on North America, comprising 74.088% of the geographic allocation. While this provides exposure to a stable and mature market, it may limit diversification benefits. Expanding geographic exposure to include more emerging markets could enhance growth potential and reduce dependency on a single region. Consider increasing allocations to underrepresented regions to achieve a more globally diversified portfolio.

Dividends Info

  • Avantis All Equity Markets ETF 0.90%
  • Weighted yield (per year) 0.90%

The portfolio's dividend yield of 0.9% is modest, reflecting its focus on growth over income generation. While dividends can provide a steady income stream, growth-oriented portfolios often prioritize capital appreciation. If income is a priority, consider increasing exposure to dividend-paying assets. Balancing growth and income can help achieve a well-rounded investment strategy that meets both short-term and long-term financial goals.

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) of 0.23% is relatively low, which is beneficial for long-term investment performance. Lower costs mean more of your investment returns are retained, enhancing compounding over time. Maintaining a low-cost structure is a positive aspect of this portfolio. However, it's important to periodically review and compare costs against alternatives to ensure continued cost-effectiveness.

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