Strategically diversified growth-oriented portfolio with a focus on global and US equities

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 heavily weighted towards equities, with a 70% allocation in a global stock ETF and the remainder divided among US large-cap growth, mid-cap value, and small-cap value ETFs. This composition reflects a growth-oriented strategy with a broad diversification across market capitalizations and geographic regions. The heavy tilt towards equities, especially with significant exposure to the global market, aligns with the portfolio's growth profile, aiming for higher returns at an increased level of risk.

Growth Info

The portfolio has demonstrated a robust historical performance with a Compound Annual Growth Rate (CAGR) of 14.47%. However, it's important to note the maximum drawdown of -36%, indicating significant volatility and potential for large temporary declines. The performance is heavily influenced by a few days of exceptional returns, as 90% of gains came from just 15 days. This underscores the importance of staying invested over the long term, as missing these key days could drastically impact overall returns.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 541.4% in portfolio value, suggesting strong growth potential. However, the 5th percentile outcome at 41.6% growth indicates a non-negligible risk of lower returns. These projections, based on historical data, highlight the importance of maintaining a long-term perspective and being prepared for periods of underperformance as well as the potential for significant growth.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is almost entirely in stocks (99%), with a minimal cash holding (1%). This asset class composition is typical for growth-oriented investors seeking higher returns, albeit with increased volatility. Stocks generally offer greater long-term growth potential than bonds or other asset classes, making them suitable for achieving the portfolio's growth objectives. However, the lack of diversification into other asset classes like bonds or real estate may increase risk during market downturns.

Sectors Info

  • Technology
    24%
  • Financials
    18%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Energy
    5%
  • Basic Materials
    4%
  • Utilities
    3%
  • Real Estate
    3%

Sector allocation is diversified across technology, financial services, industrials, and consumer cyclicals, among others. The heavy weighting in technology (24%) and financial services (18%) sectors could drive growth but also expose the portfolio to sector-specific risks, such as regulatory changes or economic cycles. Diversification across sectors is beneficial, but the concentration in high-growth areas underscores the portfolio's aggressive growth strategy.

Regions Info

  • North America
    75%
  • Europe Developed
    11%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America (75%), with smaller allocations in developed Europe, Asia, and other regions. This geographic distribution supports diversification and potential growth, especially with significant exposure to the US market, which has historically performed well. However, the limited exposure to emerging markets and certain developed regions may restrict opportunities for global diversification and risk mitigation.

Market capitalization Info

  • Mega-cap
    36%
  • Large-cap
    24%
  • Mid-cap
    24%
  • Small-cap
    8%
  • Micro-cap
    6%

Market capitalization exposure is balanced across mega (36%), big (24%), and medium (24%) cap stocks, with smaller allocations to small (8%) and micro (6%) caps. This balance provides a mix of stability from large-cap companies and growth potential from smaller-cap companies. The diverse market cap allocation supports the portfolio's growth objectives while offering a degree of risk management through exposure to more stable, large-cap stocks.

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.

Considering the Efficient Frontier, this portfolio appears to be well-positioned for optimizing the risk-return ratio based on its current assets and allocation. The Efficient Frontier analysis suggests that the portfolio's composition is close to offering the best possible return for the accepted level of risk. However, continuous monitoring and rebalancing are essential to maintain this optimization, especially given market fluctuations and changing economic conditions.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Mid-Cap Value Index Fund ETF Shares 2.20%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 1.62%

The portfolio's dividend yield stands at 1.62%, with individual ETF yields ranging from 0.40% to 2.20%. While not the primary focus of a growth-oriented strategy, dividends contribute to total returns and provide a source of income, which can be reinvested for compounding growth. The varied dividend yields across the ETFs reflect a balance between growth investments and income-generating assets, aligning with the portfolio's overall growth objectives.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Mid-Cap Value Index Fund ETF Shares 0.07%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.08%

The portfolio's total expense ratio (TER) is impressively low at 0.08%, which is beneficial for long-term growth as lower costs directly translate into higher net returns. The individual ETF costs range from 0.04% to 0.25%, indicating a cost-effective selection of funds. Minimizing investment costs is a key factor in maximizing returns, especially important in a growth-oriented strategy where every percentage point of return can significantly impact the portfolio's value over time.

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