A growth-focused portfolio with a strong U.S. bias and moderate risk exposure

Report created on Apr 28, 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 is composed predominantly of ETFs, with a strong emphasis on U.S. equities, representing 42% of the portfolio. The remainder is diversified across international markets, with a focus on developed and emerging markets. This structure provides a solid foundation for growth-oriented investors. By comparing to a benchmark, such as the MSCI World Index, the portfolio shows a higher U.S. allocation. This composition aligns with growth objectives but may benefit from periodic rebalancing to maintain desired risk levels.

Growth Info

Historically, the portfolio has delivered a compound annual growth rate (CAGR) of 12.16%, outperforming many benchmarks. This impressive growth is tempered by a maximum drawdown of -36.72%, indicating potential vulnerability during market downturns. The concentrated days of returns suggest that market timing could significantly impact outcomes. While past performance is no guarantee of future results, this history demonstrates the portfolio's potential for strong long-term returns, albeit with notable volatility. Regular monitoring can help manage risk and capture growth opportunities.

Projection Info

Using Monte Carlo simulations, which project future outcomes based on historical data, the portfolio shows promising potential. With a median projected growth of 246.2% and 923 out of 1,000 simulations yielding positive returns, the outlook is optimistic. However, the 5th percentile projects a potential decline of -19.4%, highlighting risks. While simulations provide a useful guide, they rely on past data and can't predict future market conditions. Investors should remain vigilant and consider diversifying further to mitigate downside risk.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is heavily weighted towards stocks, with 99% in equities, and a minimal 1% in cash. This high equity exposure aligns with growth objectives but increases volatility. Compared to a balanced portfolio with bonds, this allocation can lead to higher returns but also greater risk. Diversification across asset classes could reduce volatility and provide a buffer during downturns. Adding fixed income or alternative investments may enhance stability while maintaining growth potential.

Sectors Info

  • Financials
    20%
  • Technology
    19%
  • Industrials
    13%
  • Consumer Discretionary
    12%
  • Health Care
    8%
  • Telecommunications
    6%
  • Energy
    6%
  • Basic Materials
    6%
  • Consumer Staples
    6%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation is well-diversified, with a notable emphasis on financial services (20%) and technology (19%). This mirrors global benchmarks but may increase volatility during economic shifts or interest rate changes. The balance across sectors like industrials, consumer cyclicals, and healthcare provides a buffer against sector-specific downturns. Regular reviews can ensure alignment with market trends and investor goals. Adjusting sector weights may optimize performance as market conditions evolve.

Regions Info

  • North America
    59%
  • Europe Developed
    16%
  • Japan
    8%
  • Asien Schwellenländer
    7%
  • Asien
    4%
  • Australasia
    2%
  • Afrika/Mittlerer Osten
    2%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America (59%), with moderate exposure to Europe and Asia. This U.S. bias aligns with past market performance but may limit benefits from global diversification. Emerging markets are underrepresented, potentially missing growth opportunities. Comparing to global indices like the MSCI All Country World Index, the portfolio could benefit from increased exposure to underrepresented regions. Balancing geographic allocation may enhance diversification and capture global growth.

Market capitalization Info

  • Mega-cap
    33%
  • Large-cap
    24%
  • Mid-cap
    19%
  • Small-cap
    14%
  • Micro-cap
    8%

The portfolio's market capitalization distribution is skewed towards mega (33%) and big (24%) companies, with moderate exposure to medium, small, and micro caps. This balance supports stability and growth, as large-cap stocks offer resilience while smaller caps provide growth potential. Aligning with benchmarks like the Russell 3000 Index, this distribution is typical for growth portfolios. Periodic rebalancing can maintain this balance, ensuring exposure to growth opportunities while managing risk.

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 be optimized using the Efficient Frontier, which seeks the best risk-return ratio for a given set of assets. This involves adjusting asset weights to enhance returns without increasing risk. While current allocations are growth-oriented, slight adjustments could improve efficiency. This method focuses on maximizing returns for a given risk level, not necessarily diversification. Regular analysis and rebalancing can ensure the portfolio remains on the Efficient Frontier, optimizing performance.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.90%
  • Avantis® U.S. Small Cap Value ETF 1.90%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 3.00%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.40%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 3.20%
  • Weighted yield (per year) 2.27%

The portfolio's average dividend yield of 2.27% provides a modest income stream, complementing growth objectives. ETFs like Avantis International Small Cap Value offer higher yields, enhancing income potential. For growth-focused investors, dividends can provide a buffer during market volatility. Regularly reviewing dividend policies and yields can ensure they align with income needs and market conditions. Balancing growth and income can optimize overall returns while managing risk.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.10%

The portfolio's total expense ratio (TER) of 0.10% is impressively low, supporting better long-term performance. Low costs are crucial as they directly impact net returns. Vanguard ETFs contribute significantly to this efficiency, with minimal fees. Maintaining this cost structure ensures more capital is invested, enhancing compounding benefits. Regularly reviewing fees and considering cost-effective alternatives can sustain this advantage. Keeping costs low is a key factor in achieving long-term growth objectives.

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