A balanced and broadly diversified portfolio with a strong emphasis on US equities and technology
Report created on Aug 13, 2025Risk profile
4/7
Diversification profile
4/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 50.00% -
AV American Century ETF Trust
AVNM - US0250721745 35.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 15.00%
The portfolio is heavily weighted towards ETFs, with a significant 50% in the Vanguard Total Stock Market Index Fund ETF Shares, 35% in the American Century ETF Trust, and 15% in the Avantis® U.S. Small Cap Value ETF. This composition suggests a strategic focus on broad market exposure, particularly within the United States. The allocation across these ETFs indicates a preference for a mix of total market, thematic investment, and small-cap value strategies, aiming to balance growth potential with risk management.
Growth
Historically, this portfolio has demonstrated a strong performance with a Compound Annual Growth Rate (CAGR) of 18.69%. The maximum drawdown of -17.19% suggests resilience during market downturns. Notably, the portfolio's returns are significantly concentrated, with just 14 days accounting for 90% of its gains. This concentration of returns underscores the importance of staying invested over the long term to capture key profitable days.
Projection
Forward projections, based on Monte Carlo simulations, show a wide range of potential outcomes, with the median scenario indicating an 876.7% increase. It's important to remember that these simulations use historical data to forecast future returns, and while they provide a spectrum of possible outcomes, they cannot predict market movements with certainty. The high percentage of simulations resulting in positive returns (999 out of 1,000) reinforces the portfolio's solid foundation but also highlights the inherent uncertainties in investing.
Asset classes
- Stocks 99%
The portfolio's asset allocation is heavily skewed towards stocks (99%), with a negligible amount in cash and no exposure to bonds or other asset classes. This allocation reflects a growth-oriented strategy but also indicates a higher risk level, given the lack of fixed-income securities to buffer against market volatility. A more diversified asset class mix could provide better risk-adjusted returns over time.
Sectors
- Technology 20%
- Financials 19%
- Industrials 13%
- Consumer Discretionary 12%
- Health Care 7%
- Telecommunications 7%
- Energy 6%
- Basic Materials 5%
- Consumer Staples 5%
- Utilities 2%
- Real Estate 2%
Sector allocation shows a balanced approach with a notable emphasis on technology (20%) and financial services (19%). This sector composition suggests a strategy that leverages growth in tech while maintaining substantial investment in the financial sector, which can offer stability. However, the concentration in these sectors may expose the portfolio to sector-specific risks, such as regulatory changes or economic cycles impacting these industries.
Regions
- North America 66%
- Europe Developed 14%
- Japan 6%
- Asia Emerging 5%
- Asia Developed 5%
- Australasia 2%
- Latin America 1%
- Africa/Middle East 1%
Geographic exposure is predominantly in North America (66%), with diversified allocations across Europe Developed, Japan, and emerging markets in Asia. This geographic distribution enhances diversification but also reflects a home bias towards the US market. Expanding exposure to emerging markets and underrepresented regions could offer additional diversification benefits and access to growth opportunities outside the developed world.
Market capitalization
- Mega-cap 30%
- Large-cap 25%
- Mid-cap 18%
- Small-cap 13%
- Micro-cap 9%
The market capitalization breakdown—with 30% in mega, 25% in big, 18% in medium, 13% in small, and 9% in micro-caps—reveals a balanced approach to size diversification. This mix aims to capture the growth potential of smaller companies while relying on the stability of larger firms. However, the significant allocation to smaller caps increases the portfolio's volatility and risk profile.
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 analysis suggests that the portfolio is close to optimal for its current risk level, with a projected optimal return of 19.28% at a risk level of 14.41%. This indicates that the portfolio's asset allocation is well-calibrated to balance risk and return. However, continuous review and adjustment in response to changing market conditions or investment goals are essential to maintain this balance.
Dividends
- American Century ETF Trust 3.00%
- Avantis® U.S. Small Cap Value ETF 1.70%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Weighted yield (per year) 1.90%
The dividend yields from the ETFs contribute to the portfolio's total income, with a combined yield of 1.90%. While dividends provide a steady income stream and can help cushion returns in volatile markets, the portfolio's overall yield reflects its growth orientation over income generation. Investors seeking higher income might consider reallocating towards assets with higher dividend yields.
Ongoing product costs
- American Century ETF Trust 0.31%
- Avantis® U.S. Small Cap Value ETF 0.25%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Weighted costs total (per year) 0.16%
The portfolio's total expense ratio (TER) of 0.16% is impressively low, enhancing its long-term return potential by minimizing cost drag. This cost efficiency is particularly notable given the broad diversification and exposure to specialized ETFs. Keeping costs low is a fundamental principle of successful investing, and this portfolio aligns well with that strategy.
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