A broadly diversified stock focused portfolio with strong growth tilt and moderate downside risk

Report created on Aug 11, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is built from four broad, low-cost stock ETFs, with about half in a total US fund, roughly a third in total international, a growth-heavy slice in a major tech index, and a small tilt toward smaller value companies. It’s essentially 100% in stocks, which explains the “Balanced” label leaning toward the growth side rather than including much in bonds. This structure keeps things simple and transparent, while still giving wide coverage. Someone using this mix could think about whether they’re comfortable with an all‑equity core and small exposure to cash, or whether adding a dedicated stabilizing asset over time might better match cash‑flow needs or near‑term spending plans.

Growth Info

Using a simple example, a $10,000 investment growing at a 14.41% CAGR (Compound Annual Growth Rate) would have increased to more than $50,000 over ten years. CAGR is like your average speed on a long road trip, smoothing out the bumps of good and bad years. That return, combined with a maximum drawdown of -26.78%, shows strong growth with meaningful but not extreme declines for an all‑stock mix. This is in line with or a bit above many broad equity benchmarks. It’s important to remember these figures come from past data, which can change; future returns can be lower even if the structure looks sound.

Projection Info

The Monte Carlo analysis takes the history of returns and volatility and then simulates 1,000 alternate futures, like rolling dice many times to see a range of possible outcomes. Here, almost all simulations ended with positive returns, and the median result of about 682% suggests a $10,000 stake could hypothetically grow to around $78,000 over a long horizon. The 5th percentile around 111.3% shows much lower but still positive outcomes. While that paints an encouraging picture, Monte Carlo uses historical patterns that may not fully repeat. It’s best seen as a rough map of risk and reward rather than a precise forecast.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

Allocation is 99% stocks and 1% cash, which is very growth‑oriented for a “balanced” risk score of 4/7. Stock‑heavy portfolios usually deliver higher long‑term returns but can see sharp short‑term drops, especially during recessions or crises. The “Broadly Diversified” label is accurate within the stock universe, which is a big positive, but true balance usually includes some steadier assets that behave differently. Over time, someone using this kind of mix could think about whether they want to stay nearly fully in equities or gradually layer in more defensive assets as life milestones, income stability, or withdrawal needs start to matter more.

Sectors Info

  • Technology
    30%
  • Financials
    15%
  • Consumer Discretionary
    11%
  • Industrials
    10%
  • Telecommunications
    9%
  • Health Care
    8%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector exposure is nicely spread, with technology at 30%, financials at 15%, then consumer, industrial, communication, and healthcare names rounding things out. This mix mirrors common benchmarks quite closely, which is a strong indicator of good diversification. The tech and communication tilt, boosted by the growth ETF, will likely cause higher swings when interest rates move or when markets re‑price fast‑growing companies. At the same time, having meaningful weights in defensive and cyclical areas adds resilience across different economic conditions. Over the long run, this sector spread should help avoid making performance overly dependent on a single industry story.

Regions Info

  • North America
    72%
  • Europe Developed
    11%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, about 72% sits in North America, with the rest spread across Europe, Japan, developed Asia, and emerging markets. This is quite similar to global free‑float benchmarks, though still modestly US‑tilted, which is very common for American investors. The alignment with global standards is a real strength, as it reduces the risk of being overly tied to one economy or political system. Non‑US exposure also offers currency diversification, which can either boost or drag returns over shorter stretches. Over decades, mixing different regions has historically smoothed the ride, even if any one area leads or lags for many years at a time.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    29%
  • Mid-cap
    16%
  • Small-cap
    7%
  • Micro-cap
    4%

Market cap exposure leans toward larger companies: roughly 42% mega cap, 29% big, 16% medium, with small and micro together just over 10%. That’s fairly close to broad market norms and is generally considered a solid core structure, since mega and large caps tend to be more stable and liquid. The small‑cap value ETF adds a modest tilt toward smaller, cheaper companies, which historically has sometimes boosted long‑term returns but can increase volatility and underperformance in certain cycles. This balance between size segments looks well‑calibrated for someone seeking growth without making extreme bets on very small or speculative firms.

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.

On a risk‑return basis, this mix looks close to the Efficient Frontier for the chosen ingredients. The Efficient Frontier is a curve showing the best possible trade‑off between risk (volatility) and return using the existing building blocks, like finding the speed that gets you there fastest without wasting fuel. Small tweaks between the core index funds and the growth or small‑value tilt could slightly change the expected ride smoothness versus potential return, but there’s no obvious structural problem. “Efficiency” here means maximizing return for the amount of risk taken, not necessarily maximizing diversification or minimizing drawdowns absolutely.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.52%

The overall dividend yield of about 1.52% is modest and fits a growth‑oriented equity portfolio. Yield simply measures how much cash income you get yearly as a percentage of your investment, like rent from a property. The international ETF provides the highest yield in the mix, while the tech‑heavy growth ETF is understandably lower, reflecting its focus on reinvested profits rather than payouts. For someone in an accumulation phase, this low‑to‑moderate income profile can be quite efficient, as more return comes from price growth. For income‑focused needs, it might not be sufficient on its own without additional higher‑yielding components.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.06%

Total ongoing costs (TER of about 0.06%) are impressively low, which strongly supports long‑term performance. TER, or Total Expense Ratio, is like a quiet membership fee charged yearly by each fund; the less you pay, the more of the portfolio’s return you keep. The bulk of assets sit in ultra‑low‑cost index ETFs, and even the priciest holding remains within a reasonable range for a specialized strategy. This cost structure is a major strength and aligns very well with best practices for long‑term investors. Keeping fees lean can add up to a surprisingly large difference over decades of compounding.

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