A growth focused low cost stock portfolio with strong US tilt and style tilting

Report created on Aug 12, 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 built entirely from stock ETFs, with a clear tilt toward the US and a mix of broad market, growth, value, small cap, and dividend strategies. The biggest single piece is the total US market, with meaningful slices in US small value, US dividends, and US large growth, plus a smaller allocation to international stocks. Structurally, this lines up pretty well with a growth profile and common benchmark mixes, but with extra style tilts. That’s useful because it can boost returns but also raise volatility. A practical next step is deciding whether you want to keep all four US funds or simplify by trimming overlapping “core” holdings.

Growth Info

Historically, a 10,000 dollar investment in this mix, compounding at about 16.37 percent per year (CAGR), would have grown very strongly versus typical stock benchmarks. CAGR, or Compound Annual Growth Rate, is like your average speed on a road trip: it smooths out the ups and downs into one yearly growth number. The flip side is a maximum drawdown of about -36 percent, meaning the worst peak‑to‑trough fall was pretty deep, which is typical for an aggressive stock portfolio. This history is encouraging, but it’s still just history: markets change, so using past returns as a ceiling rather than a promise is a more grounded mindset.

Projection Info

The Monte Carlo results show a wide range of possible futures, from about 60 percent total growth at the low end (5th percentile) to more than eightfold growth at the 67th percentile. Monte Carlo simulations basically “shuffle the deck” of past returns thousands of times to see many plausible paths, giving percentiles rather than a single forecast. The median path turning into roughly 5.6 times your starting value and an average simulated return around 17 percent both signal a strongly growth‑oriented profile. Still, these outcomes depend on historical patterns repeating, which they never do perfectly, so treating them as a rough map rather than a GPS route is more realistic.

Asset classes Info

  • Stocks
    100%

All assets here are in stocks, with no cash or bonds. That creates a very clean, growth‑heavy profile that’s easy to understand and monitor, and it actually aligns closely with what many growth benchmarks look like. The tradeoff is that when stocks fall, there’s nothing in the mix to cushion the blow, so portfolio swings can be large. Diversification across asset classes (like adding bonds or cash) usually helps smooth returns but can reduce peak growth. Anyone using this kind of setup might want to manage risk in other ways, such as keeping a separate cash buffer for near‑term needs instead of relying on this portfolio for short‑term expenses.

Sectors Info

  • Technology
    24%
  • Financials
    15%
  • Consumer Discretionary
    13%
  • Industrials
    10%
  • Health Care
    10%
  • Energy
    9%
  • Telecommunications
    8%
  • Consumer Staples
    7%
  • Basic Materials
    3%
  • Real Estate
    1%
  • Utilities
    1%

Sector exposure is broadly spread across technology, financials, consumer stocks, industrials, healthcare, energy, and more, with tech the largest slice around a quarter of the portfolio. This looks quite similar to major US equity benchmarks and is a strong sign of healthy diversification across the economy. Tech‑heavy mixes can be more sensitive when interest rates rise or when growth expectations cool, so swings may be sharper in those environments. The presence of financials, consumer defensive names, and healthcare helps balance that out somewhat. It’s worth deciding whether the current tech tilt matches your comfort level, rather than adding even more to the hottest areas during strong markets.

Regions Info

  • North America
    90%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%

Geographically, about 90 percent of the portfolio sits in North America, with relatively small slices in Europe, Japan, and other international regions. This lines up with a “home country bias” many US investors have and has worked well recently because US markets have outperformed. The tradeoff is less protection if the US lags other regions for a stretch, since international diversification can help when leadership rotates globally. The current setup is fine for someone who’s comfortable with a US‑centric approach, but anyone wanting more global balance could gradually nudge the international piece higher rather than making big, sudden shifts.

Market capitalization Info

  • Mega-cap
    29%
  • Large-cap
    29%
  • Mid-cap
    16%
  • Small-cap
    13%
  • Micro-cap
    11%

The portfolio spreads across mega, large, mid, small, and micro caps, with roughly 58 percent in the biggest companies and the rest in smaller firms. This is quite healthy and actually more diversified by size than many simple index mixes, thanks to the dedicated small cap value ETF. Exposure to smaller companies can lift long‑term returns because these firms often grow faster, but they also tend to be more volatile and can lag for years at a time. Keeping this size mix intact works well if the goal is long‑term growth and you’re okay with bumpy periods rather than trying to time when smaller companies will shine.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The holdings are naturally highly correlated because they’re all stocks, and one pair stands out: the total US market ETF and the US large‑cap growth ETF move very similarly. Correlation measures how often assets move together; when it’s high, you get less diversification benefit during market drops. Having two funds that largely track the same part of the market can add complexity without much extra risk control. The overall pattern is still fine for a growth portfolio, but there’s room to simplify. Focusing on whether each fund truly adds something different—by size, style, or region—can help streamline the lineup without changing your overall risk level much.

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.

From a risk‑return standpoint, this mix likely sits reasonably close to an Efficient Frontier using these building blocks. The Efficient Frontier is the set of combinations that give you the most expected return for each level of risk, based only on how you blend the current assets. “Efficient” here doesn’t mean perfect diversification, just the best tradeoff between risk and return with what’s in the toolbox. The main tweak that might move you closer to that frontier is trimming overlapping positions, particularly where correlation is very high, and slightly rebalancing between growth, value, and international rather than adding new funds or chasing recent winners.

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 Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.56%

The portfolio’s total yield sits around 1.56 percent, with the dividend ETF and international fund doing most of the income heavy lifting. Dividend yield is the annual cash payout as a percentage of the investment, like “interest” from stocks, and it can be attractive for people who want a bit of steady income. Here, the yield is modest, which is normal for a growth‑oriented mix where part of the return comes from price appreciation rather than cash payments. The dedicated dividend ETF is a nice stabilizer that often holds more mature companies. If income needs are low, letting those dividends reinvest automatically can quietly boost long‑term compounding.

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 Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.08%

The total expense ratio around 0.08 percent is impressively low, especially for a portfolio with multiple specialized ETFs. TER, or Total Expense Ratio, is what you pay the fund manager each year, and even tiny differences compound massively over decades. This cost profile is better than what many active or high‑fee strategies offer and supports stronger long‑term outcomes. With fees already this low, there’s no pressing need to chase tiny cost cuts at the expense of good structure. The bigger win now is making sure each fund has a clear role—broad market, small value tilt, dividends, growth—so you’re not paying even low fees for redundant exposure.

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