This portfolio has only about 4.8 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.
Open the Portfolio Builder Reshape your holdings and watch every metric recalculate live. Try it

Moderately High-Risk Broadly Diversified Growth Portfolio with Strong Historical Performance

Report created on Jul 25, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is composed of six different ETFs, with a significant concentration in large-cap and small-cap U.S. equities. The largest holdings are the Vanguard S&P 500 ETF and the Avantis U.S. Small Cap Value ETF. This composition suggests a focus on growth through diversified exposure to various segments of the U.S. stock market, complemented by a smaller allocation to international stocks. This diversification can help mitigate risk while aiming for growth, but it remains heavily weighted towards equities, which could lead to higher volatility.

Growth Info

Historically, the portfolio has performed well, with a compound annual growth rate (CAGR) of 14.3%. However, it has also experienced significant drawdowns, with the maximum drawdown reaching -37.93%. This indicates that while the portfolio has the potential for high returns, it can also be subject to substantial losses during market downturns. The performance is driven by the strong historical returns of the U.S. stock market, particularly in the technology and financial sectors.

Projection Info

Using a Monte Carlo simulation with 1,000 iterations, the portfolio's future performance was projected. The median (50th percentile) end portfolio value suggests a potential significant increase, while the 5th percentile indicates the potential for lower returns. The annualized return across all simulations is 17.63%, showing a positive outlook. Monte Carlo simulations help in understanding the range of possible outcomes by considering various market conditions, providing a probabilistic view of future performance.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely composed of stocks, with a negligible allocation to cash and other assets. This high concentration in equities suggests a strong growth orientation but also implies higher risk and volatility. Diversifying into other asset classes like bonds or commodities could help reduce risk and provide more stability, especially during market downturns. However, the current composition is suitable for an investor with a high-risk tolerance and a long-term investment horizon.

Sectors Info

  • Technology
    28%
  • Financials
    27%
  • Industrials
    10%
  • Consumer Discretionary
    9%
  • Health Care
    6%
  • Energy
    5%
  • Consumer Staples
    4%
  • Basic Materials
    4%
  • Telecommunications
    3%
  • Real Estate
    2%
  • Utilities
    1%

The portfolio is diversified across multiple sectors, with significant allocations to technology (27.71%) and financial services (26.76%). Other notable sectors include industrials, consumer cyclicals, and healthcare. This sector allocation provides exposure to various parts of the economy, potentially reducing sector-specific risks. However, the heavy weighting towards technology and financial services could lead to higher volatility. Balancing the sector allocation could improve risk-adjusted returns.

Regions Info

  • North America
    85%
  • Europe Developed
    7%
  • Japan
    2%
  • Asia Emerging
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily concentrated in North America, particularly the U.S., which makes up 85.07% of the holdings. There is some international exposure, with small allocations to Europe, Japan, and emerging markets. This geographic concentration could expose the portfolio to region-specific risks but also benefits from the strong performance of the U.S. market. Increasing exposure to other regions could enhance diversification and reduce dependency on the U.S. market.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Fidelity® MSCI Financials Index ETF 1.60%
  • SPDR® S&P MIDCAP 400 ETF Trust 1.20%
  • Vanguard Information Technology Index Fund ETF Shares 0.70%
  • Vanguard S&P 500 ETF 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 3.00%
  • Weighted yield (per year) 1.54%

The portfolio has a moderate dividend yield, which can provide a steady income stream in addition to capital gains. Dividends can be particularly beneficial during periods of market volatility, as they offer some return even when stock prices are down. Reinvesting dividends can also enhance long-term growth through compounding. Monitoring and potentially increasing the allocation to higher-yielding assets could improve the portfolio's income-generating potential.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Fidelity® MSCI Financials Index ETF 0.08%
  • SPDR® S&P MIDCAP 400 ETF Trust 0.24%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.12%

The portfolio's total expense ratio (TER) is 0.12%, which is relatively low. This indicates that the portfolio is cost-efficient, as lower fees can significantly enhance long-term returns. Managing investment costs is crucial, as high fees can erode returns over time. The choice of low-cost ETFs is a positive aspect of this portfolio. Maintaining this focus on cost efficiency while potentially exploring even lower-cost options could further optimize performance.

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