A growth-focused portfolio with a strong tilt towards US equities and a blend of market capitalizations

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio is best suited for an investor with a growth-oriented profile, higher risk tolerance, and a long-term investment horizon. It's designed for individuals who prioritize capital appreciation over income and are comfortable with the volatility inherent in a stock-focused strategy. The investor likely has a robust financial foundation, allowing them to withstand significant market fluctuations in pursuit of higher returns.

Positions

  • iShares Core S&P 500 ETF
    IVV - US4642872000
    60.00%
  • Avantis® U.S. Small Cap Value ETF
    AVUV - US0250728773
    15.00%
  • iShares Core S&P Mid-Cap ETF
    IJH - US4642875078
    10.00%
  • Avantis® International Equity ETF
    AVDE - US0250727031
    5.00%
  • Avantis® International Small Cap Value ETF
    AVDV - US0250728021
    5.00%
  • Invesco S&P MidCap Momentum ETF
    XMMO - US46137V4648
    5.00%

This portfolio is heavily weighted towards US equities, with a significant 60% allocation in the iShares Core S&P 500 ETF, complemented by targeted exposures to US small and mid-cap stocks through the Avantis® U.S. Small Cap Value ETF and the iShares Core S&P Mid-Cap ETF, respectively. International exposure is modest, at 10% across two Avantis® ETFs. The portfolio's structure leans towards growth, with a diversification score indicating a moderate range of asset classes and sectors, yet it shows a heavy concentration in the US market.

Growth Info

Historically, this portfolio has exhibited strong performance with a Compound Annual Growth Rate (CAGR) of 14.77%. However, it's important to note that it has also experienced significant volatility, as evidenced by a maximum drawdown of -36.98%. Such a drawdown highlights periods of substantial value decline, which can be a critical factor for investors to consider, especially those with a lower risk tolerance. The days contributing to 90% of the returns being limited suggests that much of the portfolio's gains are concentrated in short, possibly unpredictable periods.

Projection Info

Using Monte Carlo simulations, which forecast future performance based on historical data, this portfolio shows a wide range of outcomes. While the median projection suggests substantial growth, the presence of a 5th percentile outcome at just 3.8% growth indicates potential for low returns in adverse scenarios. These simulations, while useful for planning, are inherently uncertain and should be viewed as one of many tools in investment decision-making.

Asset classes Info

  • Stocks
    100%
  • Cash
    0%
  • Other
    0%
  • Bonds
    0%
  • No data
    0%

The portfolio is exclusively invested in stocks, which positions it for potential high growth but also exposes it to higher volatility compared to more diversified portfolios that include bonds or other asset classes. This singular focus on equities is congruent with a growth-oriented investment strategy but may not suit all investors, especially those nearing retirement or with low risk tolerance.

Sectors Info

  • Technology
    22%
  • Financials
    18%
  • Industrials
    12%
  • Consumer Discretionary
    12%
  • Health Care
    9%
  • Telecommunications
    6%
  • Consumer Staples
    6%
  • Energy
    5%
  • Basic Materials
    4%
  • Real Estate
    3%
  • Utilities
    2%

Sector allocation shows a heavy emphasis on Technology and Financial Services, which are sectors that can offer significant growth opportunities but also come with higher volatility. The presence of Industrials, Consumer Cyclicals, and Healthcare provides some balance, though the portfolio could be exposed to sector-specific risks, such as regulatory changes in healthcare or economic cycles affecting consumer behavior.

Regions Info

  • North America
    90%
  • Europe Developed
    5%
  • Japan
    3%
  • Australasia
    1%
  • Latin America
    0%
  • Africa/Middle East
    0%
  • Asia Developed
    0%
  • Asia Emerging
    0%
  • Europe Emerging
    0%

With 90% of assets allocated to North America, primarily the US, the portfolio's geographic diversification is limited. This concentration enhances exposure to US market performance but reduces potential benefits from global diversification, such as risk mitigation and exposure to growth in other economies. The minimal exposure to developed and emerging markets outside the US could be a missed opportunity for diversification and growth.

Market capitalization Info

  • Mega-cap
    30%
  • Large-cap
    22%
  • Mid-cap
    20%
  • Small-cap
    20%
  • Micro-cap
    8%

The portfolio's allocation across mega, big, medium, small, and micro-cap stocks suggests a strategy aimed at balancing the stability of large companies with the growth potential of smaller firms. This blend can offer a mix of growth and value, catering to investors looking for diversified exposure within the equity space. However, the specific allocation should be aligned with the investor's risk tolerance and investment horizon.

Redundant positions Info

  • Avantis® International Small Cap Value ETF
    Avantis® International Equity ETF
    High correlation

The high correlation between the Avantis® International Small Cap Value ETF and the Avantis® International Equity ETF indicates overlapping investments, which may limit the benefits of diversification. Reducing exposure to highly correlated assets can help in achieving a more diversified portfolio, potentially reducing risk without significantly sacrificing returns.

Dividends Info

  • Avantis® International Equity ETF 2.90%
  • Avantis® International Small Cap Value ETF 3.80%
  • Avantis® U.S. Small Cap Value ETF 1.90%
  • iShares Core S&P Mid-Cap ETF 1.10%
  • iShares Core S&P 500 ETF 1.40%
  • Invesco S&P MidCap Momentum ETF 0.50%
  • Weighted yield (per year) 1.60%

The portfolio's average dividend yield stands at 1.60%, with international ETFs contributing higher yields. While dividends can provide a steady income stream and contribute to total return, the focus here seems to be more on capital appreciation, given the growth orientation and the relatively modest overall yield. Investors prioritizing income might seek a higher dividend yield through different allocations.

Ongoing product costs Info

  • Avantis® International Equity ETF 0.23%
  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • iShares Core S&P Mid-Cap ETF 0.05%
  • iShares Core S&P 500 ETF 0.03%
  • Invesco S&P MidCap Momentum ETF 0.34%
  • Weighted costs total (per year) 0.11%

The total expense ratio (TER) of 0.11% is impressively low, enhancing the potential for net returns over the long term. Keeping costs low is crucial in investment management, as fees can significantly erode earnings, especially in compounding over many years. This portfolio benefits from a cost-effective structure, supporting better long-term performance.

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.

Optimizing this portfolio could involve addressing the high correlation between certain assets to enhance diversification benefits. While the portfolio's growth orientation and cost efficiency are commendable, a more balanced geographic and sectoral allocation could reduce volatility and improve resilience against market downturns. The Efficient Frontier model could help in identifying an optimal mix of assets for achieving the best possible risk-return ratio within the growth-focused strategy.

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.