A high growth factor tilted stock portfolio with balanced risk and broad global diversification focus

Report created on Dec 16, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is built almost entirely from equity ETFs, with one core Dimensional ETF making up three quarters of the total and several smaller “satellite” ETFs tilted to small cap value and momentum. For a balanced risk score, this is a very growth-oriented structure, because there is no cushion from bonds or cash. Understanding that “balanced” here refers to a middle-of-the-road risk score, not a mix of stocks and bonds, is important. If the goal is long-term growth and you can handle equity swings, this setup fits well. If smoother ride and capital preservation matter more, adding a modest stabilizing sleeve could be worth exploring.

Growth Info

Historically, this portfolio has been extremely strong, with a compound annual growth rate (CAGR) of about 21%. CAGR is like the average speed on a long road trip, smoothing out bumps to show the steady annual pace. A hypothetical 10,000 dollars growing at that rate over ten years would end up many times larger than a broad stock benchmark. The max drawdown around 17% is relatively mild for a 100% equity mix, suggesting drawdowns have been shorter or less deep than typical stock-only portfolios. It’s crucial to remember, though, that past performance reflects a certain market environment and can change quickly.

Projection Info

The Monte Carlo analysis uses 1,000 simulations to stress test possible futures by shuffling returns based on historical patterns. In simple terms, it asks, “What if markets behaved in many slightly different ways?” The median outcome shows more than a 25-fold increase, with even the 5th percentile still showing very strong growth. The average annualized return of about 28% across simulations is unusually high, likely influenced by a strong historical sample period. Such projections are useful for understanding ranges of outcomes, not promises. It’s wise to plan as if returns will be lower, so any upside becomes a bonus instead of a requirement.

Asset classes Info

  • Stocks
    100%

All of the allocation is in stocks, with zero in bonds, cash, or alternative assets. That’s very different from a typical “balanced” benchmark that usually mixes stocks with some bonds to buffer volatility. The upside is maximum exposure to long-term equity growth, which historically has beaten safer assets over long periods. The downside is that during sharp market drops, there is no built-in shock absorber. For someone with a long investment horizon and steady income, this can be perfectly reasonable. If the time horizon is shorter or withdrawals are planned soon, layering in a modest allocation to defensive assets could smooth the ride.

Sectors Info

  • Technology
    20%
  • Financials
    18%
  • Industrials
    14%
  • Consumer Discretionary
    12%
  • Telecommunications
    7%
  • Health Care
    7%
  • Energy
    6%
  • Basic Materials
    6%
  • Consumer Staples
    5%
  • Real Estate
    2%
  • Utilities
    2%

Sector exposure is broadly spread, with double-digit stakes in technology, financials, industrials, and consumer cyclicals. This wide spread is a strong sign of diversification, and it lines up well with global equity benchmarks, which is a positive alignment. Tech and cyclical areas may drive growth but can also be more sensitive to interest rates and economic cycles, so swings can be sharper in turbulent times. The presence of defensive areas like consumer staples, utilities, and healthcare helps offset some of that, even if they are smaller weights. Keeping this reasonably balanced sector mix supports resilience without sacrificing growth potential.

Regions Info

  • North America
    70%
  • Europe Developed
    11%
  • Japan
    5%
  • Asia Emerging
    5%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

The portfolio leans about 70% toward North America, with the rest spread across developed Europe, Japan, other developed Asia, and emerging markets. This is actually quite close to global market weights, which is a strong alignment with common benchmarks and a good sign for diversification. Heavy U.S. exposure has helped over the past decade, but having meaningful allocations abroad reduces the risk of any single region dragging down long-term results. Emerging markets are present but not dominant, giving some growth and value opportunity without overwhelming risk. Overall, the geographic mix looks thoughtfully broad and globally aware.

Market capitalization Info

  • Mid-cap
    26%
  • Mega-cap
    26%
  • Large-cap
    22%
  • Small-cap
    17%
  • Micro-cap
    9%

Market capitalization exposure is nicely layered: mega and big companies together are just under half, with medium, small, and micro caps taking the rest. This is more diversified by size than many standard market portfolios, which tend to be dominated by giants. Smaller companies often have higher long-term growth potential but can be more volatile and sensitive to economic shifts. The extra tilt toward small and micro caps, especially through value-focused ETFs, adds a return kicker but also bumps up short-term noise. This structure suits someone comfortable with occasional sharper moves in pursuit of better long-run compounding.

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 Efficient Frontier is a concept that shows the best possible trade-off between risk and return for a given set of assets. Here, the analysis suggests that, using the same ingredients, a different mix could deliver around 31% expected return at the same risk level, with an “optimal” point also at that return and about 16% risk. “Efficient” in this context simply means the best risk-return ratio, not necessarily the best fit for comfort, taxes, or simplicity. Tweaking weights among the existing ETFs could potentially squeeze out more expected return, but it’s always worth weighing that against complexity and your own risk comfort.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.30%
  • Avantis® Emerging Markets Value ETF 3.70%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Dimensional ETF Trust 1.40%
  • Invesco S&P International Developed Momentum ETF 1.60%
  • Invesco S&P 500® Momentum ETF 0.70%
  • Weighted yield (per year) 1.60%

The portfolio’s total yield is around 1.6%, which is modest. Some of the value and international funds have higher yields, but the overall focus remains on capital growth rather than current income. Dividends can be helpful as a steady return component, especially for investors drawing cash, but low yields are common in growth-tilted equity portfolios. Reinvesting dividends can quietly boost compounding over time, even when the headline yield looks small. For someone who doesn’t need income today, this structure is fine. If regular cash flow ever becomes a bigger priority, shifting a slice toward higher-yielding strategies could be considered.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Dimensional ETF Trust 0.25%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.26%

The total expense ratio (TER) of roughly 0.26% is impressively low for a portfolio using specialized factor ETFs like value and momentum. TER is like an annual service fee that comes out before you see returns, so keeping it small helps more of the growth stay in your pocket. Compared with typical actively managed funds, these costs are very competitive and align closely with cost-efficient best practices. Over long periods, even a 0.5% difference in fees can noticeably affect ending wealth. This cost structure strongly supports long-term performance and does not appear to be a drag on returns.

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