A growth-oriented portfolio with a strong tilt towards US small-cap value stocks

Report created on Nov 3, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily weighted towards the Avantis® U.S. Small Cap Value ETF, making up 96.65% of the allocation, with minimal exposure to large-cap growth and the NASDAQ 100 through the Schwab U.S. Large-Cap Growth ETF and Invesco NASDAQ 100 ETF, respectively. Such a concentration in small-cap value suggests a specific strategy but raises concerns about diversification. Comparatively, a more diversified portfolio might spread investments across a broader range of asset classes and sectors to mitigate risk.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 19.08%, with a maximum drawdown of -28.54%. These figures suggest robust growth but come with significant volatility, as indicated by the drawdown. The days contributing to 90% of returns being concentrated in just 20 days highlight the portfolio's susceptibility to short-term market movements. This performance should be balanced against the risk profile and long-term goals.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 494.5%, illustrating the potential for substantial growth. However, the broad spread between the 5th and 67th percentiles (87.8% to 736.2%) underscores the high level of uncertainty and risk. Such projections, while useful for understanding potential volatility and outcomes, are based on historical data and cannot guarantee future performance.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, with no allocation to cash, bonds, or other asset classes. This allocation supports a high-growth strategy but lacks the balance that other asset classes can provide, particularly in terms of reducing volatility and protecting against market downturns. Diversifying across different asset classes could help stabilize returns over time.

Sectors Info

  • Financials
    25%
  • Consumer Discretionary
    19%
  • Industrials
    15%
  • Energy
    15%
  • Technology
    8%
  • Basic Materials
    6%
  • Consumer Staples
    4%
  • Health Care
    4%
  • Telecommunications
    3%
  • Real Estate
    1%

The sector distribution shows a concentration in financial services, consumer cyclicals, industrials, and energy, which are sectors typically associated with the small-cap value space. This concentration increases exposure to sector-specific risks. Balancing this with investments in sectors less represented or absent, such as utilities and healthcare, could provide a more stable performance across different market conditions.

Regions Info

  • North America
    98%
  • Latin America
    1%
  • Europe Developed
    1%

Geographically, the portfolio is almost entirely focused on North America, with minimal exposure to other regions. This geographic concentration limits potential gains from global economic growth and diversification benefits that international markets can offer. Including more international exposure, particularly to developed Europe and emerging markets, could enhance returns and reduce risk.

Market capitalization Info

  • Micro-cap
    47%
  • Small-cap
    46%
  • Mid-cap
    3%
  • Mega-cap
    2%
  • Large-cap
    1%

The heavy emphasis on micro and small-cap stocks aligns with the portfolio's growth and value focus but carries higher volatility and risk compared to large or mega-cap stocks. While small-cap stocks can offer significant growth potential, they are often more sensitive to economic downturns. Balancing this with larger-cap stocks could provide a more resilient portfolio.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Invesco NASDAQ 100 ETF
    High correlation

The high correlation between the Schwab U.S. Large-Cap Growth ETF and the Invesco NASDAQ 100 ETF, despite their small combined weight, underscores a lack of diversification. Reducing overlap by reallocating from highly correlated assets to those with lower correlations can enhance the portfolio's diversification benefits and potentially reduce volatility.

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.

The portfolio's current heavy tilt towards small-cap value stocks offers high growth potential but at increased risk. The optimal portfolio, with an expected return of 5.37% and a risk level of 3.94%, suggests that there is room for improvement in risk-adjusted returns. Diversifying across more asset classes, sectors, and geographies could achieve a better balance between risk and return, moving the portfolio closer to the Efficient Frontier.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • FIDELITY ZERO INTERNATIONAL INDEX FUND 2.30%
  • FIDELITY ZERO TOTAL MARKET INDEX FUND 1.00%
  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Fidelity® Government Money Market Fund 2.40%
  • Weighted yield (per year) 1.66%

The portfolio's overall dividend yield of 1.66% contributes to its total return, albeit modestly. Given the growth orientation, dividends play a secondary role to capital appreciation. However, incorporating higher-yielding assets could provide a steady income stream, which can be particularly beneficial during market downturns or for investors seeking income.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Weighted costs total (per year) 0.24%

With a total expense ratio (TER) of 0.24%, the portfolio's costs are relatively low, which is beneficial for long-term growth. Keeping costs low is crucial as even small differences in fees can significantly impact net returns over time. The focus should remain on balancing cost efficiency with the pursuit of diversification and risk management.

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