Balanced and broadly diversified portfolio with a global focus and strategic value and growth allocation

Report created on Jul 28, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio exhibits a strong foundation in global equities, with a 60% allocation to a world stock index, ensuring broad exposure across various markets. The strategic inclusion of ETFs targeting momentum, growth, and value within the U.S., alongside targeted international and emerging market value ETFs, demonstrates a nuanced approach to capturing different market dynamics. This composition aligns well with a balanced risk profile, aiming to mitigate volatility through diversification while seeking growth through targeted strategies.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.03%, with a maximum drawdown of -24.91%. This performance, coupled with the days contributing most to returns, suggests resilience in varied market conditions. Notably, the portfolio's ability to recover from downturns and capitalize on market upswings is indicative of its balanced risk-return profile. Comparing these metrics against benchmarks would further contextualize its performance, especially in relation to its diversified asset allocation.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, indicate a wide range of potential outcomes for this portfolio. While historical data doesn't guarantee future results, the simulations suggest a strong likelihood of positive returns, with a median projection significantly higher than the initial investment. This forward-looking analysis supports the portfolio's strategic positioning but should be considered alongside the inherent limitations of relying solely on past trends.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's overwhelming allocation to stocks (99%) underscores its growth orientation, reflective of the investor's moderate risk tolerance. While this concentration enhances potential for higher returns, it also increases exposure to market volatility. The minimal cash position (1%) may limit liquidity and flexibility in market downturns. Balancing this with a small allocation to more conservative asset classes could provide a buffer without significantly compromising growth potential.

Sectors Info

  • Technology
    23%
  • Financials
    18%
  • Consumer Discretionary
    11%
  • Industrials
    11%
  • Telecommunications
    8%
  • Health Care
    8%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    4%
  • Utilities
    3%
  • Real Estate
    2%

Sector allocations reveal a well-considered spread across technology, financial services, and consumer cyclicals, among others. This sector diversity can help cushion the portfolio against sector-specific downturns, although the significant weight in technology and financial services introduces sector concentration risk. Considering the cyclic nature of sectors, rebalancing to ensure alignment with changing economic cycles may optimize sector exposure.

Regions Info

  • North America
    70%
  • Europe Developed
    12%
  • Japan
    5%
  • Asia Emerging
    5%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

The portfolio's geographic distribution, with a substantial 70% in North America and diversified exposure across developed and emerging markets, reflects a balanced approach to global investing. This geographic spread mitigates risks associated with regional economic downturns and political instability. However, the underrepresentation of emerging markets might limit exposure to high-growth opportunities. Increasing allocations to underrepresented regions could further diversify and potentially enhance returns.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    32%
  • Mid-cap
    20%
  • Small-cap
    5%
  • Micro-cap
    1%

The market capitalization breakdown, favoring mega and big cap stocks, suggests a preference for stability and established performance. While this may reduce volatility, it could also limit potential for outsized gains from smaller, high-growth companies. Introducing a slightly higher allocation to small and micro-cap stocks, especially in emerging markets, might offer a balanced trade-off between risk and reward.

Redundant positions Info

  • Avantis® International Small Cap Value ETF
    Dimensional International Value ETF
    High correlation

The identified highly correlated assets, particularly among the value-oriented ETFs, suggest redundancy that may not contribute to diversification. Reducing overlap by consolidating similar positions could streamline the portfolio, potentially enhancing its efficiency without sacrificing the diversification benefits of a broad-based investment strategy.

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 portfolio's current asset allocation and the identified highly correlated assets, optimizing towards the Efficient Frontier could enhance the risk-return profile. This optimization involves adjusting allocations to achieve the best possible balance between risk and return, focusing on diversification and reducing redundancy. Such adjustments should be carefully considered within the context of the investor's risk tolerance and investment goals.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.70%
  • Avantis® Emerging Markets Value ETF 3.90%
  • Dimensional International Value ETF 3.30%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Russell 1000 Growth Index Fund ETF Shares 0.50%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Vanguard Value Index Fund ETF Shares 2.10%
  • Weighted yield (per year) 1.70%

The portfolio's dividend yield strategy, with a total yield of 1.70%, contributes to its income generation while supporting reinvestment and compounding growth. The varied yields across ETFs reflect a strategic balance between growth orientation and income generation. Regularly reviewing dividend performance in the context of overall portfolio goals can ensure this balance remains aligned with investor objectives.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Value ETF 0.36%
  • Dimensional International Value ETF 0.27%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Russell 1000 Growth Index Fund ETF Shares 0.08%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Vanguard Value Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.10%

With a Total Expense Ratio (TER) averaging 0.10%, the portfolio is efficiently managed, minimizing costs to maximize net returns. This low-cost structure is commendable, especially given the broad diversification and strategic allocations across various ETFs. Continual monitoring of TERs across holdings ensures that the portfolio remains cost-effective over time.

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