Growth-focused portfolio with a strong foundation in US equities and diversified international exposure

Report created on Jun 9, 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 showcases a substantial allocation to U.S. equities, complemented by strategic positions in international markets. The significant stake in Berkshire Hathaway adds a unique blend of direct stock investment and diversified holdings managed by seasoned investors. The ETFs span a range of sectors and market caps, from large-cap growth and dividend-focused funds to small-cap value, offering broad exposure. The inclusion of international ETFs enhances global diversification, though the portfolio leans heavily towards North American assets.

Growth Info

Historically, the portfolio has delivered a Compound Annual Growth Rate (CAGR) of 14.99%, with a maximum drawdown of -34.08%. This performance, characterized by substantial growth with periods of significant volatility, underscores the portfolio's growth orientation. The days contributing most to returns highlight the impact of short-term, high-gain periods, a common feature in growth-driven strategies. Comparing this to benchmarks would provide context, but the strong CAGR suggests competitive performance.

Projection Info

Monte Carlo simulations, projecting future performance based on past data, indicate a wide range of outcomes but a strong trend towards positive returns. While historical performance is a useful guide, these projections are inherently uncertain. They suggest resilience in the portfolio's structure, with a significant majority of simulations forecasting growth. This forward-looking analysis supports the portfolio's potential for continued growth, albeit with the usual caveats regarding market unpredictability.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

With 99% of the portfolio in stocks, the asset class allocation underscores a clear preference for equity investments, reflecting a growth-focused strategy. The minimal cash holding provides liquidity but little cushion against market volatility. Diversifying across more asset classes, such as fixed income or real assets, could provide additional stability without substantially diluting the portfolio’s growth potential.

Sectors Info

  • Financials
    35%
  • Technology
    16%
  • Consumer Discretionary
    9%
  • Industrials
    8%
  • Health Care
    8%
  • Consumer Staples
    7%
  • Energy
    7%
  • Telecommunications
    5%
  • Basic Materials
    3%
  • Utilities
    1%
  • Real Estate
    1%

The sector allocation reveals a heavy emphasis on financial services, followed by technology. This concentration in sectors that can exhibit significant volatility underscores the portfolio's aggressive growth stance. While the presence in diverse sectors like consumer cyclicals and healthcare adds balance, the financial and tech-heavy orientation may expose the portfolio to sector-specific risks. Broadening the sectoral coverage could mitigate such risks while still aligning with growth objectives.

Regions Info

  • North America
    81%
  • Europe Developed
    9%
  • Japan
    3%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation is predominantly North American, with a modest but meaningful exposure to developed European markets and emerging regions. This distribution supports growth through geographic diversification, leveraging both the stability of developed markets and the growth potential in emerging economies. However, the portfolio might benefit from increased exposure to high-growth emerging markets to enhance potential returns and further diversify geographic risk.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    26%
  • Mid-cap
    15%
  • Small-cap
    7%
  • Micro-cap
    5%

The market capitalization breakdown, with a strong lean towards mega and big-cap stocks, aligns with the portfolio's growth and stability objectives. These companies typically offer more reliable returns and resilience during market downturns. However, the allocation to small and micro-cap stocks, although modest, introduces higher growth potential at the cost of increased volatility. A more balanced approach could involve adjusting the weightings to optimize the risk-reward ratio further.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard S&P 500 ETF
    High correlation
  • Vanguard International High Dividend Yield Index Fund ETF Shares
    Vanguard Total International Stock Index Fund ETF Shares
    High correlation

The analysis identifies high correlation within certain ETF pairs, indicating overlapping holdings that may limit diversification benefits. Specifically, the growth ETF and S&P 500 ETF, along with the two international high dividend yield ETFs, exhibit redundancy. Reducing overlap by reallocating funds from highly correlated assets to underrepresented sectors or geographies could enhance portfolio diversification and potentially reduce volatility without compromising growth.

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 could benefit from optimization to improve the risk-return profile. The current asset allocation shows potential for efficiency gains by addressing the identified asset correlations. Adjusting the portfolio to reduce overlap and better balance sector and geographic exposures could move the portfolio closer to the Efficient Frontier, achieving a more optimal balance between risk and return.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.80%
  • Schwab U.S. Dividend Equity ETF 4.00%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard S&P 500 ETF 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 4.10%
  • Weighted yield (per year) 1.98%

The portfolio's dividend yield stands at 1.98%, contributed by both domestic and international dividend-focused ETFs. This yield, while not the primary focus of a growth-oriented portfolio, offers a stream of income, adding a layer of return beyond price appreciation. Balancing growth and income, especially in market downturns, could be achieved by fine-tuning the allocation towards assets with higher dividend yields without significantly altering the portfolio's growth trajectory.

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 S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 0.22%
  • Weighted costs total (per year) 0.07%

With a Total Expense Ratio (TER) averaging 0.07%, the portfolio benefits from relatively low costs, enhancing net returns over the long term. This efficiency is crucial for growth strategies, where compounding plays a significant role in wealth accumulation. Continuously monitoring and minimizing costs, without compromising on quality and diversification, remains a key strategy for maximizing investment returns.

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