A growth-focused portfolio with a strong tilt towards small-cap value stocks across global markets

Report created on Aug 12, 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 predominantly consists of small-cap value ETFs, with a significant 60% allocation to the U.S. market, 30% to international markets, and a 10% exposure to emerging markets. This composition indicates a strategic emphasis on small-cap value stocks, which are typically companies with lower market capitalizations and are considered undervalued by the market. The portfolio's diversification score and risk classification signal a growth-oriented approach with a moderately high risk tolerance, aiming to capitalize on the higher potential returns associated with small-cap value investing.

Growth Info

The historical performance showcases a Compound Annual Growth Rate (CAGR) of 15.05%, an impressive figure that underscores the portfolio's strong growth potential. However, the maximum drawdown of -45.82% indicates significant volatility, which is characteristic of small-cap investments. The days contributing to 90% of returns being so few suggests that the portfolio's performance is heavily reliant on exceptional market days, emphasizing the importance of staying invested through market cycles for optimal returns.

Projection Info

Monte Carlo simulations, which use historical data to forecast future performance under various market conditions, predict a median return of 393.8% across 1,000 scenarios. This optimistic projection is tempered by the reality that outcomes can vary widely, as evidenced by the 5th percentile projection of 14.6% returns. These simulations reinforce the portfolio's potential for high growth while highlighting the inherent uncertainties in market-based investments.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, with no allocations to bonds, cash, or other asset classes. This singular focus on equities, particularly in the small-cap segment, maximizes growth potential but also increases volatility and risk. Diversifying across different asset classes could provide a buffer against market downturns, potentially smoothing out returns over time.

Sectors Info

  • Financials
    24%
  • Industrials
    19%
  • Consumer Discretionary
    17%
  • Energy
    12%
  • Basic Materials
    10%
  • Technology
    7%
  • Consumer Staples
    4%
  • Telecommunications
    3%
  • Health Care
    3%
  • Real Estate
    1%
  • Utilities
    1%

The sectoral allocation is heavily weighted towards financial services, industrials, and consumer cyclicals, which are sectors that can significantly benefit from economic recoveries and expansions. However, the relatively low allocation to technology and healthcare—sectors known for innovation and growth—might limit the portfolio's exposure to some of the fastest-growing segments of the economy.

Regions Info

  • North America
    62%
  • Europe Developed
    12%
  • Japan
    10%
  • Asia Emerging
    5%
  • Asia Developed
    4%
  • Australasia
    3%
  • Africa/Middle East
    2%
  • Latin America
    2%

Geographically, the portfolio has a strong bias towards North America, with significant allocations to developed Europe and Japan. The modest exposure to emerging and frontier markets may limit potential gains from these high-growth areas. Expanding into these regions could introduce new growth opportunities and enhance global diversification.

Market capitalization Info

  • Small-cap
    40%
  • Micro-cap
    32%
  • Mid-cap
    18%
  • Mega-cap
    4%
  • Large-cap
    3%

With 72% of the portfolio allocated to small and micro-cap stocks, the strategy is clear: capitalize on the growth potential of undervalued companies. While this can lead to higher returns, it also increases susceptibility to market volatility. The small allocation to medium, big, and mega-cap stocks may not sufficiently buffer against market downturns.

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.

Using the Efficient Frontier to optimize this portfolio could potentially enhance the risk-return ratio by identifying the optimal allocation between the current assets. While the portfolio already demonstrates strong growth potential, optimization might reveal opportunities to adjust allocations for an even better balance of risk and return, without necessarily sacrificing the growth-oriented strategy.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.70%
  • Avantis® Emerging Markets Equity ETF 2.90%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Weighted yield (per year) 2.42%

The dividend yields, ranging from 1.70% to 3.70%, contribute to the portfolio's total income, providing a modest cushion against price volatility. While the total yield of 2.42% is not negligible, it's clear that the portfolio's primary goal is capital appreciation rather than income generation. Investors should consider their need for income versus growth when evaluating this strategy.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Equity ETF 0.33%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Weighted costs total (per year) 0.29%

The portfolio's total expense ratio (TER) of 0.29% is relatively low, especially considering the specialized nature of the ETFs. Lower costs allow for more of the portfolio's gross return to contribute to net growth, enhancing long-term performance. Keeping costs in check is crucial for maximizing investment returns, particularly in strategies targeting narrow market segments.

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