A growth-focused portfolio with a strong tilt towards US equities and a blend of market caps

Report created on Nov 3, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards the Vanguard S&P 500 ETF, constituting nearly 70% of the allocation, which suggests a strong bias towards large-cap US equities. The inclusion of Avantis® U.S. Small Cap Value ETF and international components through Vanguard FTSE Developed Markets and Avantis® International Small Cap Value ETF diversifies the portfolio, albeit modestly. The diversification is primarily within the equity asset class, with minimal exposure to other asset classes such as bonds or alternatives. This composition aligns with a growth-oriented strategy but may carry higher volatility due to its equity concentration.

Growth Info

Historically, the portfolio has exhibited a Compound Annual Growth Rate (CAGR) of 16.60%, with a significant maximum drawdown of -36.23%. This performance indicates a high growth potential but comes with substantial risk, as evidenced by the drawdown. The days contributing to 90% of the returns being concentrated in just 19 days highlights the portfolio's susceptibility to significant market movements. Comparing this performance to relevant benchmarks would provide further context, indicating whether this level of risk and return is exceptional or in line with market averages.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, show a wide range of potential portfolio values. With 979 out of 1,000 simulations yielding positive returns, the portfolio appears to have a strong likelihood of future growth. However, the significant variation between the 5th and 67th percentiles underscores the risk involved. It's crucial to remember that these projections are based on past data, which does not guarantee future performance. This tool helps illustrate potential volatility and the need for risk management.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily skewed towards stocks (99%), with a negligible cash position (1%) and no bond or alternative investments. This allocation supports a growth-focused strategy but limits the portfolio's ability to hedge against stock market volatility. Diversifying across different asset classes can reduce risk without necessarily compromising long-term growth potential. For instance, adding bonds or real estate could provide income and reduce overall volatility.

Sectors Info

  • Technology
    27%
  • Financials
    16%
  • Consumer Discretionary
    12%
  • Industrials
    11%
  • Telecommunications
    8%
  • Health Care
    8%
  • Energy
    5%
  • Consumer Staples
    5%
  • Basic Materials
    4%
  • Utilities
    2%
  • Real Estate
    2%

The sector allocation shows a heavy emphasis on Technology (27%) and Financial Services (16%), which are sectors known for their growth potential but also for their volatility. The presence of Consumer Cyclicals, Industrials, and Healthcare adds some balance, but the portfolio may still be sensitive to sector-specific downturns. Considering a more even distribution across sectors, or increasing allocations to defensive sectors like Utilities or Consumer Defensive, could enhance stability.

Regions Info

  • North America
    86%
  • Europe Developed
    7%
  • Japan
    4%
  • Australasia
    1%
  • Asia Developed
    1%

With 86% of assets in North America and limited exposure to emerging markets, the portfolio's geographic diversification is focused but may miss out on growth opportunities in faster-growing economies. While the current allocation minimizes geopolitical and currency risks associated with international investments, incorporating a broader international exposure could capture global growth trends and reduce region-specific risks.

Market capitalization Info

  • Mega-cap
    36%
  • Large-cap
    26%
  • Mid-cap
    18%
  • Small-cap
    11%
  • Micro-cap
    8%

The market capitalization breakdown shows a diversified mix across mega (36%), big (26%), medium (18%), small (11%), and micro (8%) caps. This diversification within equities is commendable, as it blends the stability of large-cap stocks with the growth potential of small and micro-caps. However, the portfolio's performance may still be heavily influenced by the larger allocations to mega and big caps, given their substantial weight.

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.

When considering the Efficient Frontier, it appears the portfolio may not be fully optimized for the best possible risk-return ratio based on its current assets. Adjusting the allocation between asset classes and within equity sectors could potentially move the portfolio closer to the Efficient Frontier, achieving a more favorable balance between risk and return. This optimization process should be revisited periodically to adapt to changing market conditions and investment goals.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.40%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.80%
  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 1.49%

The dividend yield across the portfolio averages 1.49%, with the highest yield from the Avantis® International Small Cap Value ETF at 3.40%. While the focus on growth equities typically results in lower immediate income from dividends, the current yield contributes to the portfolio's total return. Investors seeking higher income might consider reallocating towards assets with higher dividend yields or incorporating dividend-focused funds.

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 S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.09%

The portfolio's total expense ratio (TER) of 0.09% is impressively low, which is beneficial for long-term growth as it minimizes the drag on performance caused by fees. The cost efficiency is primarily due to the low-cost nature of the Vanguard ETFs. Maintaining a focus on low-cost investments is a sound strategy, ensuring more of the portfolio's returns are retained by the investor.

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