A growth-focused portfolio with a strong emphasis on global equities and dividend yields

Report created on Jun 5, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is structured around a core of equity ETFs and funds, with a significant emphasis on both U.S. and international stocks. The allocation is geared towards growth, as evidenced by the inclusion of the Vanguard S&P 500 ETF and the Vanguard Total International Stock Index Fund ETF Shares, making up over half of the portfolio. This composition suggests a strategy aimed at capitalizing on the growth potential of large-cap companies globally while maintaining a broad diversification across regions and sectors.

Growth Info

The portfolio's historical performance, with a Compound Annual Growth Rate (CAGR) of 13.07%, indicates robust growth over the observed period. However, the maximum drawdown of -36.60% highlights potential volatility and risk, particularly relevant for growth-oriented portfolios. The days contributing to 90% of the returns being limited to 13 suggests that a few key periods have driven most of the portfolio's gains, a common characteristic in equity-focused investments.

Projection Info

The Monte Carlo simulation, projecting a median return of 342.4%, provides a forward-looking estimate based on historical data. While this method offers valuable insights into potential future performance, it's crucial to remember that simulations cannot predict market shifts or unforeseen global events. The wide range of outcomes, from the 5th to the 67th percentile, underscores the inherent uncertainty in all investments, particularly those heavily reliant on stock markets.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's allocation is almost entirely in stocks (99%), with a minimal cash reserve (1%). This asset class distribution supports the portfolio's growth objectives but also exposes it to market volatility. Diversifying across different asset classes, such as bonds or real estate, could provide a buffer against stock market downturns while potentially reducing overall portfolio volatility.

Sectors Info

  • Financials
    20%
  • Technology
    16%
  • Industrials
    13%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Consumer Staples
    8%
  • Energy
    8%
  • Telecommunications
    6%
  • Basic Materials
    4%
  • Utilities
    2%
  • Real Estate
    2%
  • Consumer Discretionary
    1%

Sector allocation shows a heavy tilt towards Financial Services, Technology, and Industrials, which are sectors often associated with higher growth but also higher volatility. The underrepresentation of more defensive sectors like Utilities and Real Estate might limit the portfolio's ability to hedge against market downturns. Balancing growth-oriented sectors with more stable sectors could improve the portfolio's resilience during market volatility.

Regions Info

  • North America
    63%
  • Europe Developed
    19%
  • Japan
    7%
  • Asia Emerging
    4%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic distribution is heavily weighted towards North America (63%), with significant exposure to developed Europe and Japan. Emerging markets are underrepresented, which may limit exposure to high-growth regions. Diversifying more into emerging markets could enhance growth potential but would also increase risk due to political and economic instability in those regions.

Market capitalization Info

  • Mega-cap
    31%
  • Large-cap
    30%
  • Mid-cap
    16%
  • Small-cap
    12%
  • Micro-cap
    10%

The market capitalization breakdown shows a balanced exposure across mega, big, and medium-sized companies, with a smaller allocation towards small and micro-cap stocks. This distribution is indicative of a strategy that seeks to balance the stability of large-cap companies with the growth potential of smaller companies. However, the relatively lower allocation to small and micro-cap stocks may limit the portfolio's potential for outsized gains from high-growth enterprises.

Redundant positions Info

  • FIDELITY INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS
    Vanguard Total International Stock Index Fund ETF Shares
    High correlation

The high correlation between the FIDELITY INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS and the Vanguard Total International Stock Index Fund ETF Shares suggests redundancy in the portfolio, which could be limiting diversification benefits. Reducing overlap by reallocating assets from highly correlated positions to less correlated ones could enhance the portfolio's diversification and potentially its risk-adjusted returns.

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 using the Efficient Frontier could further improve its risk-return profile. Before optimization, addressing the issue of overlapping assets is critical. By reallocating funds from highly correlated investments to those offering similar growth potential but with lower correlation, the portfolio can achieve a more efficient diversification. This process involves balancing the trade-off between risk and return to find the optimal asset mix that could potentially offer the highest return for a given level of risk.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.80%
  • FIDELITY INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.40%
  • Schwab U.S. Dividend Equity ETF 4.00%
  • Vanguard S&P 500 ETF 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 2.35%

The portfolio's dividend yield, averaging 2.35%, contributes to its total return, providing a steady income stream in addition to capital appreciation. The Schwab U.S. Dividend Equity ETF's higher yield (4.00%) underscores its role in enhancing the portfolio's income generation. For investors seeking both growth and income, maintaining a focus on dividend-yielding investments can offer dual benefits, especially in volatile markets.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • FIDELITY INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.08%

With a total expense ratio (TER) averaging 0.08%, the portfolio is cost-efficient, minimizing the drag on returns due to fees. This efficiency is crucial for long-term growth, as even small differences in costs can compound into significant impacts over time. Continuously monitoring and minimizing investment costs remains a key strategy for enhancing portfolio performance.

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