A broadly diversified stock heavy portfolio with balanced risk and strong tilt toward long term growth

Report created on Aug 11, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The structure is very clear: roughly half in a broad US stock fund, over a third in broad international stocks, plus a modest tilt to small value and a small slice of a growth heavy index. This leans fully into equities while still staying balanced across regions and styles. That’s relevant because simple, core-heavy portfolios tend to be easier to maintain and behave more predictably. The balanced risk score and strong diversification score suggest the overall mix fits a “growth but not extreme” profile. One possible tweak could be adding a small dedicated safety bucket, like high quality bonds or cash equivalents, if near term spending or volatility sensitivity is a concern.

Growth Info

Historically, a 10,000 dollar starting amount growing at a 14.22 percent Compound Annual Growth Rate (CAGR – the average yearly growth rate) would have multiplied several times over a typical full market cycle. That’s strong and roughly in line with a global equity portfolio tilted slightly toward the US and risk factors like small value and growth. The -25.71 percent max drawdown means that at one point, the portfolio value fell by about a quarter, which is normal for an all stock mix. Since past numbers don’t guarantee the future, it helps to treat this as a rough guide to what kind of ups and downs might be emotionally tolerable.

Projection Info

The Monte Carlo analysis used 1,000 simulations to project possible future outcomes, remixing historical returns and volatility in many random paths. A 5th percentile outcome around 102.7 percent suggests that even in rough scenarios, the simulations often show at least preserving nominal capital over the full horizon. The median path reaching about 628.7 percent and an average simulated annual return over 17 percent underline strong growth potential, but these are model based estimates, not promises. Such tools are helpful for framing ranges, not precise forecasts. Treat them as stress tests: if the low end still fits long term plans and the swings feel acceptable, the risk level is likely in a reasonable zone.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

Asset class exposure is almost pure equity at 99 percent stocks and 1 percent cash, with essentially no bonds or alternatives. This is why the portfolio sits in a “balanced but growth leaning” risk band rather than being truly conservative. A stock heavy mix can grow wealth efficiently over decades but will ride out full market storms without much cushioning. The diversification score is high because within equities you’re spread across many companies and regions. For anyone wanting smoother short term experiences or upcoming withdrawals, slowly carving out a modest percentage into more defensive holdings could reduce volatility while keeping the core growth engine intact.

Sectors Info

  • Technology
    26%
  • Financials
    17%
  • Consumer Discretionary
    12%
  • Industrials
    12%
  • Telecommunications
    8%
  • Health Care
    8%
  • Consumer Staples
    5%
  • Energy
    5%
  • Basic Materials
    4%
  • Utilities
    2%
  • Real Estate
    2%

Sector exposure is well spread: technology leads at 26 percent, then financials, consumer cyclicals, and industrials, with meaningful slices in communication services and healthcare. This is broadly similar to common global benchmarks, which is a good sign for diversification. The tech and cyclicals tilt means returns may be more sensitive to economic growth and interest rate cycles; tech heavy exposure often shines when growth is strong but can wobble when rates rise or sentiment shifts. The smaller but present stakes in defensive areas like consumer staples, utilities, and healthcare give some ballast. Overall, the sector mix is healthy and aligned with modern equity markets, without extreme concentration in any single theme.

Regions Info

  • North America
    67%
  • Europe Developed
    13%
  • Asia Emerging
    6%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, about two thirds in North America and roughly one third across Europe, Asia, and other regions looks a lot like a mild “home bias” version of global equity benchmarks. That’s a positive alignment: staying close to global weights reduces the risk of missing big regions that might lead in future decades. The spread across developed Europe, Japan, developed Asia, emerging Asia, and smaller allocations to Africa, Latin America, and Australasia brings exposure to different economic cycles and currencies. This global reach can soften the blow when one region struggles. For anyone who prefers tighter alignment with global market weights, small tweaks could bring international exposure slightly closer to full market capitalization levels.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    27%
  • Mid-cap
    16%
  • Small-cap
    9%
  • Micro-cap
    6%

The market cap breakdown shows 39 percent in mega caps, 27 percent in large caps, 16 percent mid, 9 percent small, and 6 percent micro. That’s a nice spread across company sizes compared with a pure large cap index, giving more exposure to the potential higher long term returns of smaller companies. The explicit small cap value ETF adds a deliberate tilt toward cheaper, smaller firms, which academic research links to higher expected returns but also bumpier rides. This size mix is well balanced for growth minded investors who can handle volatility. If swings feel too sharp, dialing back the dedicated small value slice slightly could still keep diversification benefits while smoothing extremes.

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.

Risk return optimization here would focus on how to position these four ETFs along an Efficient Frontier, which is the set of allocations that gives the best possible trade off between expected return and volatility using just the current ingredients. Efficiency isn’t about owning more stuff; it’s about how much of each existing holding to mix. Given the strong historical growth and moderate drawdowns, the current blend already looks close to a sensible point for a balanced growth profile. Small shifts—like slightly adjusting the share of international, small value, or the growth heavy index—could nudge the portfolio along the frontier, either trimming risk for a similar return or chasing a bit more return for a touch more risk.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.68%

The total yield around 1.68 percent comes from a mix of lower yielding growth heavy funds and higher yielding international and value tilted holdings. Dividends are the cash payments companies make to shareholders; they can support a modest income stream or be reinvested to buy more shares automatically. This yield level lines up with a growth oriented global equity portfolio and is perfectly reasonable. It’s not built as an income focused approach, but it still provides a steady trickle of cash that can help with rebalancing. Anyone wanting more income could consider a gradual tilt toward higher yielding strategies over time, while keeping an eye on the trade off between yield and growth.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco NASDAQ 100 ETF 0.15%
  • 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) 0.06%

The blended Total Expense Ratio (TER – the annual fee as a percentage of assets) of about 0.06 percent is impressively low. That’s a real strength: low costs keep more of every year’s return in the account instead of going to fund providers, and the difference compounds over decades. The slightly higher fee for the small cap value ETF is normal for more specialized strategies and still reasonable within the overall mix. This cost profile is better than most actively managed alternatives and aligns with best practices for long term investing. Keeping this fee discipline over time, especially when tempted by flashier options, can be a quiet but powerful performance booster.

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