A growth focused all stock portfolio with strong US tilt and impressively low ongoing costs
Report created on Aug 12, 2024Risk profile
5/7
Diversification profile
4/5
Positions
-
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 40.00% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 25.00% -
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 25.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 10.00%
This portfolio is a pure stock mix built from four broad ETFs, with no bonds or cash buffer. Around forty percent sits in a global fund, while the rest tilts toward US dividend payers, US large‑cap growth, and US small‑cap value. Compared with a typical global 60/40 stock‑bond benchmark, this setup is more aggressive and more concentrated in US shares. That matters because all‑equity portfolios can grow faster over decades but swing more sharply in rough markets. Someone using this structure could think about whether the 100% stock stance fits their time horizon and emotional comfort with big temporary losses.
Growth
Historically, this mix has delivered a very strong compound annual growth rate (CAGR) of about 15.9%. CAGR is like your average “speed” over the whole trip, smoothing out ups and downs. A $10,000 starting amount growing at that rate for 10 years would end up around $43,000, ignoring taxes and fees. Against typical equity benchmarks, that pace is impressive and suggests the growth and factor tilts have helped. However, the maximum drawdown of roughly –34% shows that during bad periods, the portfolio can fall a third or more. Past returns only show what *did* happen, not what *will* happen, so they’re best used as a rough guide, not a promise.
Projection
The Monte Carlo analysis runs 1,000 simulated futures using patterns from historical data to see a range of possible outcomes. Think of it as “re‑rolling” market history many times with slight variations. The median (50th percentile) result of about 604% suggests that, in a typical simulation, money could roughly sextuple over the tested period, while the 5th percentile around 65% shows a much weaker, but still mostly positive, scenario. The fact that 990 out of 1,000 runs ended with gains looks encouraging. Still, simulations rely on past relationships continuing, which they rarely do perfectly, so they’re helpful for framing expectations, not for predicting exact future account values.
Asset classes
- Stocks 100%
The entire portfolio is in stocks, with 0% in bonds, cash, or alternatives. This creates a clean, growth‑centric profile that often outperforms mixed portfolios over very long horizons but typically experiences higher volatility and deeper temporary losses. Compared with more balanced benchmarks that blend bonds for stability, this layout is clearly on the aggressive side. The overall mix across styles—global broad market, growth, dividends, and small‑cap value—does give solid internal diversification within equities. Still, anyone using a 100% stock allocation may want to check whether they have enough emergency savings or other steady income so they won’t be forced to sell during a major market slump.
Sectors
- Technology 26%
- Financials 13%
- Consumer Discretionary 12%
- Health Care 11%
- Industrials 10%
- Telecommunications 8%
- Energy 8%
- Consumer Staples 7%
- Basic Materials 3%
- Utilities 1%
- Real Estate 1%
Sector exposure spans all major areas of the market, with technology leading at about 26%, followed by meaningful stakes in financials, consumer cyclicals, healthcare, and industrials. This aligns reasonably well with modern equity benchmarks where tech is naturally a large piece, especially in US markets. A tech‑heavy tilt can boost growth when innovation is rewarded but tends to be more sensitive when interest rates spike or sentiment shifts away from high‑growth companies. Having decent slices in defensives like consumer staples and healthcare helps soften the ride a bit. Overall, this sector mix is well balanced and aligns closely with global standards, though it will still feel like an equity‑heavy, growth‑oriented ride.
Regions
- North America 86%
- Europe Developed 6%
- Asia Emerging 2%
- Japan 2%
- Asia Developed 2%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, roughly 86% sits in North America, with modest exposure to developed Europe and Asia, plus tiny stakes in emerging regions. That’s more US‑centric than broad global benchmarks, which usually hold closer to 60% in US stocks. Heavy US exposure has been a tailwind over the last decade, as US companies—especially large tech and consumer names—have outperformed many peers. The flip side is higher concentration risk if the US market enters a long, weak stretch. The global ETF adds some welcome international breadth, which is a positive sign. Over time, adjusting the US versus non‑US balance can be a way to manage home‑country bias and spread economic and currency risks.
Market capitalization
- Large-cap 34%
- Mega-cap 33%
- Mid-cap 18%
- Small-cap 8%
- Micro-cap 6%
The breakdown by size is tilted toward mega and large companies, with about two‑thirds in mega and big caps, plus good representation in mid, small, and even micro caps. This shape is reasonably close to how the investable stock universe looks, though the dedicated small‑cap value ETF adds a nice intentional boost to smaller companies. Larger firms generally bring more stability and liquidity, while smaller ones add potential for higher long‑term growth and more pronounced swings. Blending them, like this portfolio does, is a classic way to capture the “market” while leaning a bit toward less‑efficient corners. This allocation is well‑balanced and aligns closely with global standards for diversified equity exposure.
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.
On a risk–return basis, this mix likely sits close to the “growthy” side of the Efficient Frontier. The Efficient Frontier is a curve showing the best possible risk‑return trade‑offs using a given set of assets and different weightings between them. Here, the question is whether small tweaks between global, growth, dividend, and small‑cap value slices could slightly improve the risk‑return ratio without changing the underlying ingredients. Efficiency in this context just means getting the most expected return for each unit of volatility, not maximizing diversification or minimizing drawdowns outright. Given the strong historic CAGR but notable drawdown, exploring if a modest re‑balance among existing funds could smooth volatility might be worthwhile.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.60%
- Schwab U.S. Dividend Equity ETF 2.80%
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Vanguard Total World Stock Index Fund ETF Shares 1.70%
- Weighted yield (per year) 1.64%
The portfolio’s overall dividend yield is about 1.64%, with the dividend ETF and global fund doing most of the income heavy lifting. Dividend yield is the annual cash payout as a percentage of price, like rent on a property. This level is moderate: enough to add some steady cash flow but clearly not a “high income” setup. For a growth‑oriented equity portfolio, that’s very much in line with expectations and suggests a solid tilt toward quality companies that return some profits to shareholders. Income‑focused investors might consider pairing an equity income approach with other income sources, while long‑term growth investors can simply let dividends reinvest to compound over time.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- Schwab U.S. Dividend Equity ETF 0.06%
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.08%
The blended total expense ratio (TER) of roughly 0.08% is impressively low. TER is the annual fee charged by the funds, expressed as a percentage of assets—like a small membership fee for using each ETF. Keeping this number down is powerful, because fees are one of the few things an investor can control, and they compound quietly against you over decades. Relative to active funds and even many other ETFs, this cost structure is excellent and strongly supports better long‑term performance. Sticking with broadly diversified, low‑fee building blocks—like the ones used here—is a best practice in modern portfolio construction and a clear strength of this setup.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
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