This portfolio has only about 4.8 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

Balanced Growth Portfolio with Strong Diversification and High Risk Potential

Report created on Jul 24, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio consists of five ETFs, each representing 20% of the total allocation. This includes Avantis® U.S. Small Cap Value ETF, Fidelity® MSCI Financials Index ETF, SPDR® S&P MIDCAP 400 ETF Trust, Vanguard Information Technology Index Fund ETF Shares, and Vanguard Total International Stock Index Fund ETF Shares. The diversification is broad, covering multiple sectors and geographic regions. The portfolio's Total Expense Ratio (TER) is relatively low at 0.15%, which is beneficial for long-term growth. The heavy allocation to equities signals a focus on growth.

Growth Info

Historically, the portfolio has performed well, with a Compound Annual Growth Rate (CAGR) of 14.6%. However, it has also experienced significant volatility, with a maximum drawdown of -39.34%. This indicates that while the portfolio has the potential for high returns, it is also susceptible to large fluctuations. The fact that 90% of returns are concentrated in just 13 days highlights the importance of staying invested to capture these high-return periods.

Projection Info

Using a Monte Carlo simulation with 1,000 runs, the portfolio shows a wide range of potential outcomes. The 5th percentile outcome is 29.7%, while the median (50th percentile) is 594.98%, and the 67th percentile is 948.53%. The high variability in outcomes underscores the portfolio's risk. However, 972 out of 1,000 simulations resulted in positive returns, suggesting a high likelihood of gains over the long term. The annualized return across all simulations is 18.33%.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is heavily weighted towards stocks, with 99.29% in equities. There is a minimal allocation to cash and other assets, which could be a concern during market downturns. The high equity exposure aligns with the growth objective but increases risk. Diversifying into bonds or other asset classes could help mitigate this risk, providing a buffer during volatile market conditions.

Sectors Info

  • Financials
    31%
  • Technology
    27%
  • Industrials
    11%
  • Consumer Discretionary
    9%
  • Energy
    5%
  • Basic Materials
    4%
  • Health Care
    4%
  • Consumer Staples
    3%
  • Real Estate
    2%
  • Telecommunications
    2%
  • Utilities
    1%

The sector allocation is diverse, with significant exposure to Financial Services (31.46%) and Technology (26.75%). Other sectors like Industrials, Consumer Cyclicals, and Energy also have notable allocations. This broad sector coverage helps spread risk but might benefit from a more balanced approach. Overweighting in specific sectors could lead to higher volatility. A more even distribution across sectors could enhance stability.

Regions Info

  • North America
    80%
  • Europe Developed
    9%
  • Japan
    3%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Latin America
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is predominantly invested in North America (80.29%), with smaller allocations to Europe Developed, Japan, and various emerging markets. This heavy North American focus could limit exposure to growth opportunities in other regions. Diversifying further into international markets could provide additional growth potential and reduce regional risk. A more balanced geographic distribution would enhance global exposure.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Fidelity® MSCI Financials Index ETF 1.60%
  • SPDR® S&P MIDCAP 400 ETF Trust 1.20%
  • Vanguard Information Technology Index Fund ETF Shares 0.60%
  • Vanguard Total International Stock Index Fund ETF Shares 3.00%
  • Weighted yield (per year) 1.60%

The portfolio's dividend yield information is not provided, but given the high allocation to growth-oriented ETFs, the yield is likely modest. While growth stocks typically offer lower dividends, they provide capital appreciation potential. For investors seeking income, incorporating some high-dividend stocks or dividend-focused ETFs could be beneficial. This would provide a steady income stream alongside growth potential.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Fidelity® MSCI Financials Index ETF 0.08%
  • SPDR® S&P MIDCAP 400 ETF Trust 0.24%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.15%

The portfolio has a Total Expense Ratio (TER) of 0.15%, which is relatively low and beneficial for long-term investors. Lower costs mean more of the portfolio's returns are retained, enhancing overall performance. It's essential to keep monitoring costs and look for opportunities to reduce them further. Opting for low-cost funds and minimizing transaction fees can significantly impact long-term returns.

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