A growth-focused portfolio with strong US equity presence and moderate international exposure

Report created on Dec 16, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is composed primarily of ETFs, with a significant emphasis on US equities. The SPDR® Portfolio S&P 500 ETF makes up over half of the portfolio, indicating a strong tilt towards large-cap US stocks. Additionally, there is a notable allocation to growth-oriented and small-cap value ETFs. The portfolio also includes a modest exposure to international markets, both developed and emerging. Understanding the portfolio's composition is crucial as it reflects the investor's focus on growth through equity investments. To enhance diversification, consider exploring other asset classes like bonds or real estate, which could provide stability during market downturns.

Growth Info

The portfolio has demonstrated strong historical performance, with a compound annual growth rate (CAGR) of 18.76%. However, it has also experienced significant volatility, as evidenced by a maximum drawdown of -35.21%. This means that while the portfolio has the potential for high returns, it can also experience substantial losses during market downturns. Historical performance provides a useful benchmark but does not guarantee future results. Investors should remain aware of their risk tolerance and consider strategies to mitigate potential losses, such as increasing diversification or incorporating defensive assets.

Projection Info

The Monte Carlo simulation, which uses historical data to project potential future outcomes, suggests a wide range of possible returns. With 1,000 simulations, the portfolio's annualized return is estimated at 17.24%, with a 5th percentile outcome of 62.28% and a 67th percentile outcome of 933.01%. While these projections offer valuable insights, they are based on past data and may not account for unforeseen market changes. Investors should use these projections as one of many tools to guide their decisions, balancing optimism with caution, and being prepared for a variety of market scenarios.

Asset classes Info

  • Stocks
    100%

The portfolio is heavily weighted towards stocks, comprising nearly 100% of the asset allocation, with negligible allocations to bonds and cash. This concentration in equities aligns with a growth strategy but also increases exposure to market volatility. Diversifying across multiple asset classes can help manage risk and provide more stable returns over time. Consider incorporating bonds or other fixed-income securities to balance the portfolio and reduce potential losses during market downturns. This approach can offer a more resilient investment strategy, particularly for those with a lower risk tolerance.

Sectors Info

  • Technology
    29%
  • Financials
    17%
  • Consumer Discretionary
    12%
  • Industrials
    10%
  • Health Care
    9%
  • Telecommunications
    8%
  • Energy
    5%
  • Consumer Staples
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

The sector allocation in this portfolio is skewed towards technology, financial services, and consumer cyclicals, with these sectors making up the majority of the investments. This concentration can lead to significant gains during sector booms but also poses risks if these sectors underperform. A more balanced sector allocation can help mitigate this risk. Investors might explore increasing exposure to underrepresented sectors like utilities or real estate, which can provide stability and income. This strategy can enhance diversification and potentially improve the portfolio's risk-return profile.

Regions Info

  • North America
    87%
  • Europe Developed
    5%
  • Japan
    3%
  • Asia Emerging
    2%
  • Asia Developed
    1%
  • Australasia
    1%

Geographically, the portfolio is predominantly focused on North America, with over 86% of assets allocated to this region. While this offers familiarity and stability, it limits exposure to the potential growth opportunities in other global markets. Expanding geographic diversification can reduce regional risk and capitalize on global economic trends. Consider increasing investments in emerging markets or other developed regions to capture growth opportunities and enhance diversification. This can help balance the portfolio and reduce reliance on any single geographic area, potentially leading to more consistent 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.

The portfolio can potentially be optimized using the Efficient Frontier, which aims to achieve the best possible risk-return ratio by adjusting asset allocations. This process involves analyzing the current assets and reallocating them to find an optimal balance between risk and return. While optimization can improve efficiency, it may not address other goals like diversification or income generation. Investors should consider their individual objectives and constraints when optimizing their portfolio. Regularly reviewing and adjusting asset allocations can help maintain an efficient portfolio that aligns with evolving market conditions and personal goals.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.00%
  • Avantis® Emerging Markets Equity ETF 2.80%
  • Avantis® U.S. Small Cap Value ETF 1.50%
  • Invesco S&P International Developed Momentum ETF 2.20%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • SPDR® Portfolio S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.27%

The portfolio's dividend yield stands at 1.27%, with higher yields from the Avantis® International Small Cap Value and Emerging Markets Equity ETFs. While dividends provide a steady income stream, the portfolio's focus on growth-oriented ETFs results in a relatively low overall yield. Investors seeking income may need to supplement this portfolio with higher-yielding investments. Consider adding dividend-focused ETFs or stocks to increase income without sacrificing growth potential. Balancing growth and income can help achieve a more comprehensive investment strategy tailored to individual goals.

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%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Weighted costs total (per year) 0.10%

The portfolio's total expense ratio (TER) is relatively low at 0.1%, with the SPDR® Portfolio S&P 500 and Schwab U.S. Large-Cap Growth ETFs offering particularly low costs. Keeping costs low is essential for maximizing long-term returns, as fees can significantly erode gains over time. Investors should regularly review their portfolio's expense ratios and consider cost-effective alternatives to improve efficiency. Opting for low-cost ETFs or index funds can help reduce expenses while maintaining exposure to desired asset classes and sectors, ultimately enhancing overall portfolio 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