A balanced and broadly diversified portfolio with a strategic focus on value and global exposure

Report created on Aug 13, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio presents a robust blend of ETFs concentrating on large-cap, small-cap, international stocks, and value-oriented investments. The Vanguard S&P 500 ETF, with a 35% allocation, anchors the portfolio in large-cap U.S. equities, while the Avantis® U.S. Small Cap Value ETF and Invesco S&P 500® Pure Value ETF introduce a focus on value stocks. The international dimension is well-represented by the Vanguard Total International Stock Index Fund ETF Shares and Avantis® International Small Cap Value ETF, ensuring global diversification. This strategic mix aligns with a balanced risk profile, aiming to capture growth across different market segments while mitigating risk through diversification.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 10.70%, with a maximum drawdown of -22.80%. This performance is indicative of the portfolio's resilience and potential for steady growth over time. The days contributing most to returns highlight the portfolio's capacity to capitalize on market upswings effectively. However, it's crucial to remember that past performance is not always indicative of future results, and investors should consider their risk tolerance and investment horizon when evaluating these figures.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of potential future outcomes, suggest an annualized return of 11.87% across 1,000 scenarios. With the majority of simulations predicting positive returns, this analysis supports the portfolio's potential for sustained growth. Nonetheless, investors should note that these projections are hypothetical and subject to various market conditions and economic factors.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily skewed towards stocks (99%), with a minimal cash holding (1%). This composition supports a growth-oriented strategy but comes with higher volatility compared to portfolios with significant bond or alternative asset holdings. Investors should ensure this aligns with their risk tolerance and consider if diversifying into other asset classes could provide a more balanced risk-return profile.

Sectors Info

  • Financials
    20%
  • Technology
    16%
  • Consumer Discretionary
    13%
  • Industrials
    13%
  • Health Care
    8%
  • Energy
    7%
  • Consumer Staples
    7%
  • Basic Materials
    6%
  • Telecommunications
    6%
  • Utilities
    2%
  • Real Estate
    2%

Sectoral allocation covers a broad spectrum, with significant weightings in Financial Services, Technology, Consumer Cyclicals, and Industrials. This diversified sector exposure positions the portfolio to benefit from growth across different areas of the economy. However, the concentration in specific sectors like Technology and Financial Services may expose the portfolio to sector-specific risks, warranting a periodic review to ensure alignment with the investor's risk appetite.

Regions Info

  • North America
    67%
  • Europe Developed
    15%
  • Japan
    8%
  • Asia Emerging
    3%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is predominantly invested in North America (67%), with meaningful exposure to developed European markets and Japan. Emerging markets represent a smaller portion of the allocation, suggesting a conservative approach to geographic diversification. Investors looking for broader global exposure might consider increasing allocations to emerging and frontier markets, which could offer higher growth potential albeit with increased risk.

Market capitalization Info

  • Mega-cap
    27%
  • Mid-cap
    22%
  • Large-cap
    22%
  • Small-cap
    17%
  • Micro-cap
    11%

The market capitalization breakdown shows a balanced exposure across mega, big, medium, small, and micro-cap stocks. This diversified cap-size allocation enhances the portfolio's ability to capture growth across different market segments, from established large-cap companies to more volatile but potentially higher-growth small and micro-cap firms. It's a prudent approach that balances stability with growth potential.

Redundant positions Info

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

The portfolio contains highly correlated assets, particularly among international value ETFs, which may limit diversification benefits. While these holdings aim to capture value across different geographies, their similar investment strategies result in overlapping positions that could amplify risk during market downturns. Streamlining these holdings could enhance the portfolio's risk-adjusted 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.

Click on the colored dots to explore allocations.

Optimizing the portfolio involves addressing the redundancy among highly correlated assets to improve diversification. Removing or reducing overlap can enhance the portfolio's efficiency, potentially leading to better risk-adjusted returns. This process should consider the unique attributes of each holding and the overall investment strategy, ensuring that adjustments align with the investor's goals and risk tolerance.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.70%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Dimensional International Value ETF 3.20%
  • Invesco S&P 500® Pure Value ETF 2.30%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 2.06%

The portfolio's dividend yield stands at 2.06%, contributing to its total return. Dividends offer a source of income and can provide a cushion during market volatility. The varying yields across ETFs reflect different investment focuses, from high-yield international value stocks to lower-yield large-cap equities. Investors should consider their income needs and the role of dividends in achieving their investment objectives.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Dimensional International Value ETF 0.27%
  • Invesco S&P 500® Pure Value ETF 0.35%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.16%

With a Total Expense Ratio (TER) of 0.16%, the portfolio benefits from relatively low costs, enhancing net returns over time. The Vanguard S&P 500 ETF's exceptionally low expense ratio contributes to this efficiency. Keeping costs low is crucial for long-term investment success, as even small differences in fees can significantly impact compounded returns.

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