A growth oriented low cost stock portfolio with strong US tilt and solid diversification score

Report created on Aug 12, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is almost entirely in stocks, tilted toward US large‑cap growth, US dividends, and US small‑cap value, with a smaller slice in broad global and international funds. Compared with a typical global “total market” mix, this is more US‑heavy and more growth‑tilted, which explains the higher risk score of 5 out of 7. That’s not inherently bad; it simply means larger ups and downs. For someone comfortable with volatility, keeping the core diversified funds as the anchor and using the satellite positions for tilts is a smart structure. Periodically checking that each ETF still lines up with your goals helps keep this simple, focused design on track.

Growth Info

Historically, this mix delivered a very strong 16% compound annual growth rate (CAGR), meaning $10,000 would have grown to roughly $44,000 over ten years if that rate persisted. CAGR is like your “average speed” on a long road trip: it smooths out the bumps. The flip side is a max drawdown of about –35%, showing that deep temporary losses are very possible. This lines up with a growth‑oriented, equity‑heavy style. The strong past results are encouraging and suggest the tilts have been rewarded, but it’s important to remember that past performance doesn’t guarantee similar future returns, especially after such a strong decade for US and growth‑focused stocks.

Projection Info

The Monte Carlo analysis, which runs 1,000 random return paths based on historical patterns, shows a wide range of possible futures. In plain terms, it “reshuffles” past returns to estimate how this mix might behave, not to predict an exact outcome. The 5th percentile ending at about 59.6% of today’s value shows that disappointing long‑run scenarios are still very possible. The median and higher percentiles are extremely strong, reflecting the high‑return, high‑risk profile. The fact that most simulations were positive is encouraging but not a promise. Treat these numbers as rough weather forecasts: useful for planning, but never something to rely on with total certainty.

Asset classes Info

  • Stocks
    99%

The allocation is 99% stock, with essentially no bonds or cash. That is a bold, growth‑first setup and explains the higher risk profile. Being nearly all‑equity is great for long horizons and inflation protection, but it can feel brutal during big market drops when there’s nothing in the portfolio designed to cushion the fall. The “Broadly Diversified” score of 4 out of 5 suggests that within stocks, the spread across styles, sizes, and regions is quite solid. This structure is well aligned with a long‑term, wealth‑building approach. If future spending needs or comfort with volatility change, gradually layering in some defensive assets could help smooth the ride.

Sectors Info

  • Technology
    25%
  • Financials
    14%
  • Consumer Discretionary
    12%
  • Industrials
    10%
  • Health Care
    10%
  • Telecommunications
    8%
  • Energy
    8%
  • Consumer Staples
    7%
  • Basic Materials
    3%
  • Utilities
    1%
  • Real Estate
    1%

Sector exposure looks nicely spread, with technology the largest at 25%, followed by financials, consumer cyclicals, industrials, healthcare, and solid representation across most other areas. This is close to what broad equity benchmarks look like today, meaning you’re riding overall market trends rather than making big sector bets. Tech‑heavy mixes tend to do very well in low‑rate, innovation‑driven periods but can be hit hard when interest rates rise or growth expectations cool. The presence of dividend and value tilts adds some ballast in more traditional sectors like financials and industrials. This sector blend is well‑balanced and aligns closely with global standards, reducing the risk that one industry alone dominates your long‑term outcomes.

Regions Info

  • North America
    83%
  • Europe Developed
    7%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, about 83% sits in North America, with smaller slices in Europe, Japan, other developed Asia, and emerging markets. That is a clear home‑country and US tilt compared with many world benchmarks, which usually allocate more to non‑US stocks. This tilt has been rewarding over the last decade because US markets, especially large‑cap growth, outperformed most other regions. The trade‑off is higher dependence on one economic and policy environment. The international positions do add helpful diversification, especially in different currencies and economic cycles. If reducing reliance on US outcomes becomes a priority, shifting a bit more toward broad international exposure would make returns less tied to a single region’s fortunes.

Market capitalization Info

  • Mega-cap
    33%
  • Large-cap
    31%
  • Mid-cap
    17%
  • Small-cap
    10%
  • Micro-cap
    8%

Market‑cap exposure is nicely spread: roughly a third in mega‑caps, another third in large caps, and the rest in mid, small, and even micro‑cap companies. This looks healthier and more balanced than a pure large‑cap index, which often leans much more heavily into a few mega names. The dedicated small‑cap value slice is especially useful for diversification because those companies can move differently than large‑cap growth during cycles. Smaller and micro companies are more volatile and can underperform for long stretches, but they’ve historically contributed to higher long‑term returns. This blend strikes a strong balance between capturing the stability of giants and the growth potential of smaller firms.

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.

On a risk‑return chart known as the Efficient Frontier, this mix already sits in a strong position for someone targeting growth. The Efficient Frontier is simply the set of portfolios that offer the best possible return for each level of risk, using only the existing ingredients and different weights between them. Within this menu, shifting a bit between the high‑growth, dividend, value, and international pieces could slightly tweak volatility or expected return, but the current all‑equity profile is already aimed squarely at maximizing growth rather than smoothing swings. Here, “efficiency” is purely about the trade‑off between risk and return, not about taxes, liquidity, or personal comfort with ups and downs.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Schwab U.S. Dividend Equity ETF 2.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.63%

The overall dividend yield of about 1.63% is modest but meaningful, especially for a growth‑oriented stock mix. The dividend‑focused ETF and international fund boost income, while the large‑cap growth component naturally pays less. Dividends provide a small, steady stream of return that doesn’t rely on prices going up, which can be psychologically helpful during flat or down markets. However, with such a strong growth tilt, most of the long‑term payoff is expected from price appreciation, not income. For someone not yet living off the portfolio, reinvesting dividends to buy more shares keeps compounding working in your favor and fits well with a long‑horizon growth strategy.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.09%

Overall costs are impressively low, with a total expense ratio (TER) around 0.09%. TER is basically the annual “membership fee” for your funds, and keeping it low means more of the portfolio’s growth stays in your pocket. This cost profile compares very favorably with both active funds and many managed solutions, which often charge several times this level. The slightly higher fee for the small‑cap value fund is typical for that niche and still reasonable. Cost discipline is one of the few things investors can fully control, and this setup does that extremely well. Over decades, even small fee differences can add up to a meaningful gap in outcomes.

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