Balanced growth portfolio with a strong focus on value and mid-cap ETFs

Report created on Sep 15, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio exhibits a strategic blend of equity and fixed-income ETFs, with a significant emphasis on value stocks across various market capitalizations. The largest allocations are in broad-based U.S. equity and sector-specific ETFs, complemented by international exposure and a modest position in commodities through the iShares Gold Trust. The diversification across asset classes, sectors, and geographies suggests a comprehensive approach to achieving balanced growth while managing risk.

Growth Info

The portfolio has demonstrated robust historical performance, with a Compound Annual Growth Rate (CAGR) of 19.22%. The maximum drawdown of -15.31% indicates a relatively moderate level of risk, considering the portfolio's aggressive growth rate. It's important to note that while past performance is indicative, it does not guarantee future results. The days contributing most to returns highlight the impact of significant market movements on portfolio performance.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median scenario suggesting a substantial return potential. This forward-looking analysis, while based on historical data, provides a probabilistic assessment of future performance. However, it's crucial to understand the limitations of such simulations, as they cannot account for unforeseen market events or shifts in economic conditions.

Asset classes Info

  • Stocks
    90%
  • Bonds
    13%
  • Other
    3%

The portfolio's asset allocation leans heavily towards stocks, with a 90% allocation, complemented by bonds and a small position in commodities. This allocation aligns with the portfolio's balanced growth objective but may carry higher volatility. Diversifying further within fixed income and alternative assets could provide additional risk mitigation.

Sectors Info

  • Financials
    22%
  • Technology
    13%
  • Consumer Discretionary
    12%
  • Industrials
    12%
  • Basic Materials
    6%
  • Energy
    6%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Health Care
    4%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation reveals a diversified approach, with significant investments in financial services, technology, and consumer cyclicals. This sectoral spread supports the portfolio's growth objectives but may be sensitive to economic cycles. Monitoring sector performance and adjusting allocations in response to changing market conditions could enhance returns and reduce volatility.

Regions Info

  • North America
    60%
  • Europe Developed
    11%
  • Japan
    7%
  • Asia Emerging
    4%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic distribution shows a strong bias towards North American assets, with meaningful allocations in developed European markets and Japan. While this provides a solid foundation in stable economies, expanding into emerging markets could offer higher growth potential and further diversification benefits.

Market capitalization Info

  • Small-cap
    25%
  • Mid-cap
    19%
  • Mega-cap
    18%
  • Large-cap
    15%
  • Micro-cap
    9%
  • No data
    3%

The mix of market capitalizations, with allocations across small, medium, mega, and big caps, underscores the portfolio's balanced approach to growth and risk. Small and mid-cap investments offer growth potential but come with higher volatility. Balancing these with large-cap investments can stabilize portfolio performance.

Redundant positions Info

  • Avantis® International Small Cap Value ETF
    American Century ETF Trust
    High correlation
  • Avantis® U.S. Small Cap Value ETF
    Invesco S&P MidCap Value with Momentum ETF
    High correlation

The identification of highly correlated assets, particularly among certain ETFs, suggests an opportunity to streamline the portfolio for efficiency. Reducing overlap can enhance diversification benefits and potentially lower risk without sacrificing 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.

Optimization analysis suggests potential for improving the portfolio's risk-return profile. By addressing the overlap in highly correlated assets, the portfolio can achieve a more efficient allocation. This adjustment aims to maintain or enhance expected returns while managing risk more effectively, aligning with the principle of the Efficient Frontier.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.50%
  • American Century ETF Trust 3.10%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • PIMCO ETF Trust 5.90%
  • SPDR® Portfolio S&P 500 ETF 1.10%
  • Invesco S&P MidCap Value with Momentum ETF 1.90%
  • Weighted yield (per year) 2.27%

Dividend yields across the ETFs contribute to the portfolio's total return, with a combined yield of 2.27%. This income component complements capital gains, providing a steady return stream. Regularly reviewing dividend performance and considering reinvestment strategies can maximize compounding benefits.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • American Century ETF Trust 0.34%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • iShares Gold Trust 0.25%
  • PIMCO ETF Trust 0.55%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Invesco S&P MidCap Value with Momentum ETF 0.39%
  • Weighted costs total (per year) 0.26%

The portfolio's total expense ratio (TER) of 0.26% is relatively low, enhancing net returns. However, individual ETF costs vary, and the higher expenses of certain funds, like the PIMCO ETF Trust, warrant review. Lowering costs where possible, without compromising strategic objectives, can significantly impact long-term growth.

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