A growth-focused portfolio with a strong emphasis on diversification and global exposure

Report created on Jul 21, 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 structured with a significant tilt towards equities, comprising 50% in a total stock market ETF, 30% in an international stock ETF, 10% in a U.S. small-cap value ETF, and 10% in a U.S. large-cap growth ETF. This composition underscores a growth-oriented strategy, leveraging broad market exposure to capitalize on global equity performance. The allocation across different market segments and regions suggests a well-considered approach to diversification, aiming to balance the pursuit of higher returns with the management of risk.

Growth Info

Historical performance, with a Compound Annual Growth Rate (CAGR) of 14.90% and a maximum drawdown of -35.33%, indicates a robust growth trajectory tempered by significant volatility. The days contributing most to returns highlight the portfolio's sensitivity to market movements. Comparing these metrics against benchmarks can provide insight into relative risk and return profiles, suggesting this portfolio has navigated market cycles effectively, albeit with periods of sharp declines.

Projection Info

Monte Carlo simulations project a wide range of future outcomes, emphasizing the uncertainty inherent in investing. The median projection suggests substantial growth potential, yet the spread between the 5th and 67th percentiles underscores the risk of significant fluctuations. This analysis, while informative, relies on historical data, which may not fully predict future market conditions. Investors should consider these projections as one of many tools in decision-making.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

With 99% of the portfolio in stocks, the emphasis is clearly on capital growth through equity investments. This high allocation to stocks is typical for growth-oriented investors but comes with higher volatility and risk. The minimal cash holding provides liquidity but little buffer against market downturns. Diversification across asset classes, including fixed income or alternative investments, might offer additional risk management benefits.

Sectors Info

  • Technology
    25%
  • Financials
    18%
  • Consumer Discretionary
    11%
  • Industrials
    11%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    4%
  • Real Estate
    2%
  • Utilities
    2%

The sector allocation shows a heavy weighting towards technology and financial services, followed by consumer cyclicals and industrials. This sector composition is reflective of a growth-focused strategy but may increase susceptibility to sector-specific risks. For instance, technology stocks can be volatile in response to interest rate changes or regulatory shifts. Balancing sector exposures can mitigate risks while still capturing growth opportunities.

Regions Info

  • North America
    72%
  • Europe Developed
    12%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic allocation underscores a strong preference for North American equities, complemented by developed European markets and a modest presence in emerging and developed Asian markets. This geographic spread supports diversification, though the portfolio may benefit from increased exposure to emerging markets and other regions to enhance growth prospects and further spread risk.

Market capitalization Info

  • Mega-cap
    40%
  • Large-cap
    27%
  • Mid-cap
    16%
  • Small-cap
    9%
  • Micro-cap
    6%

The market capitalization breakdown reveals a strategic focus on mega and large-cap stocks, known for their stability and potential for steady growth. Medium, small, and micro caps, although less represented, introduce higher growth potential with increased volatility. This mix supports a growth strategy while incorporating elements of stability through larger companies.

Redundant positions Info

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

The noted high correlation between the total stock market and large-cap growth ETFs suggests redundancy, which may limit diversification benefits. Reducing overlap by reallocating assets could enhance portfolio efficiency by broadening exposure and reducing volatility without significantly sacrificing potential returns.

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's current configuration, while strong in growth potential and diversification, could benefit from optimization to reduce correlated asset exposure. Employing the Efficient Frontier concept could identify an asset mix offering the best possible risk-return trade-off, enhancing portfolio performance by reallocating among existing assets or introducing new, uncorrelated investments.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.65%

The dividend yield component contributes to total returns, with yields ranging from 0.40% to 2.80% across different ETFs. While growth is the primary goal, dividends offer a secondary income stream and a cushion during market downturns. Evaluating the role of dividends in achieving portfolio objectives can inform decisions on asset allocation and yield optimization.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • 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) 0.06%

The overall low cost, as indicated by a Total Expense Ratio (TER) of 0.06%, positions the portfolio favorably for long-term growth by minimizing the drag on returns. Keeping costs low is crucial in maximizing investment efficiency, especially in growth-oriented strategies where compounding plays a significant role.

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