Growth focused equity portfolio with strong diversification and a tilt toward quality and small value

Report created on Jan 4, 2026

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is built entirely from stock ETFs, with a mix of broad market, quality, growth, and small value tilts. Around half sits in large US companies, with the rest spread across international and small caps. Compared to a typical global stock benchmark, this leans slightly more into factor tilts like quality and value while still staying broadly diversified. This structure is well aligned with a growth profile, but it is also more volatile than a blend including bonds. Keeping this 100% stock mix makes sense only if long-term growth and tolerance for bigger ups and downs are both clearly a priority.

Growth Info

Based on the stated CAGR of 16.22%, a hypothetical $10,000 invested over 10 years would have grown to roughly $45,000, versus maybe around $30,000–$35,000 for many broad equity benchmarks over similar strong periods. That outperformance is impressive and suggests the factor tilts toward quality and small value have helped historically. However, the max drawdown of -36.56% shows the portfolio can fall sharply in bad markets. It’s important to remember past performance is not a promise; strong recent returns can be followed by long flat periods, so expectations should stay realistic.

Projection Info

The Monte Carlo analysis, using 1,000 simulations, projects a wide range of possible futures. Monte Carlo means the computer runs many “what if” scenarios based on historical volatility and returns, then shows likely outcomes. Here, the 5th percentile ending value at 50.2% means a $10,000 investment might end as low as about $5,020 in a poor scenario, while the 50th percentile at 622.1% suggests a median outcome around $62,210. The 67th percentile near 955.7% shows strong upside is possible. These projections rely heavily on past data, so they’re guides, not guarantees, especially if future markets look very different.

Asset classes Info

  • Stocks
    100%

The portfolio is 100% in stocks, with no bonds or cash as strategic holdings. That pure-equity stance is typical for a growth-focused approach but will naturally swing more than a mixed portfolio that includes bonds or short-term instruments. Compared to a balanced benchmark that might hold 40–60% bonds, this structure offers more long-term growth potential but also deeper and more frequent drawdowns. For someone needing stability or withdrawals in the near term, adding a modest slice of lower-volatility assets could smooth the ride. For a long horizon with ongoing contributions, staying fully in equities can be reasonable if volatility is acceptable.

Sectors Info

  • Technology
    25%
  • Financials
    18%
  • Industrials
    13%
  • Consumer Discretionary
    12%
  • Telecommunications
    7%
  • Energy
    7%
  • Basic Materials
    7%
  • Health Care
    6%
  • Consumer Staples
    3%
  • Utilities
    2%
  • Real Estate
    1%

Sector exposure is broad and well spread: technology is largest at 25%, followed by financials, industrials, consumer cyclicals, and meaningful positions in energy, basic materials, and communication services. This looks similar to many global equity benchmarks, which is a good sign for diversification. Tech-heavy allocations can experience more volatility when interest rates rise, while financials and cyclicals tend to be more sensitive to economic cycles. The relatively modest weight in defensive areas like consumer staples and utilities means less built-in downside cushion. Overall, the sector mix is healthy and aligned with global standards, but it will behave like a true growth-tilted equity portfolio in rough markets.

Regions Info

  • North America
    71%
  • Europe Developed
    14%
  • Japan
    9%
  • Australasia
    2%
  • Asia Developed
    2%
  • Africa/Middle East
    1%

Geographically, about 71% is in North America, with the rest spread across developed Europe, Japan, and smaller slices in Australasia and developed Asia. This home bias toward North America is common for US-based investors and has helped in the last decade as US markets outperformed many regions. International small-cap exposure adds another useful diversification layer that many benchmarks underrepresent. The low allocation to emerging markets slightly reduces exposure to higher-growth but higher-risk economies. Overall, this geographic mix is broadly diversified and quite close to many global equity norms, though anyone wanting more emerging-market participation might consider gradually adding a small allocation.

Market capitalization Info

  • Mega-cap
    33%
  • Large-cap
    24%
  • Mid-cap
    20%
  • Small-cap
    13%
  • Micro-cap
    8%

The market cap mix spans the spectrum: about a third in mega caps, with substantial allocations to big and mid caps, and meaningful small and even micro-cap exposure. This is a real strength. Larger companies often provide stability and liquidity, while smaller value names can drive higher long-term returns, albeit with bumpier paths. Compared to a pure large-cap index, this setup should capture more of the “size premium” when small caps do well, though it will lag when small caps struggle. This balance across company sizes is well-constructed and aligns closely with research-backed diversification approaches for equity-only growth portfolios.

Redundant positions Info

  • Schwab U.S. Large-Cap ETF
    Schwab U.S. Large-Cap Growth ETF
    High correlation

The portfolio shows a clear highly correlated pair: the Schwab U.S. Large-Cap ETF and the Schwab U.S. Large-Cap Growth ETF. Correlation means how often two holdings move in the same direction; highly correlated positions tend to behave similarly, which reduces diversification benefits. Owning overlapping large-cap US funds can concentrate risk in the same types of companies, especially when both lean toward growth. Trimming overlapping positions and consolidating into fewer, broader holdings could keep the same general exposure while simplifying the portfolio. That kind of streamlining often makes rebalancing easier and can slightly improve risk management without changing the overall growth 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.

From a risk-return standpoint, this portfolio sits on the aggressive side but fairly close to an efficient profile for an all-equity mix. The “Efficient Frontier” is the set of portfolios that give the best possible return for a given level of risk, using only the existing building blocks and shifting their weights. Since all holdings are equities, efficiency here is mainly about reducing overlapping exposures and balancing factor tilts, not adding bonds. Removing or shrinking highly correlated, redundant positions and slightly adjusting the weights between broad market, quality, and small value could nudge the portfolio closer to the efficient frontier without changing the overall growth character.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.00%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Franklin FTSE Canada ETF 1.80%
  • Schwab International Equity ETF 3.40%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Schwab U.S. Large-Cap ETF 1.10%
  • iShares MSCI USA Quality GARP ETF 0.30%
  • Weighted yield (per year) 1.68%

The total estimated dividend yield of about 1.68% is modest, which fits a growth-oriented equity mix tilted toward quality, growth, and small value. Dividends here are more of a bonus than the main return driver; most of the heavy lifting comes from capital appreciation. For investors focused on income, a yield under 2% means this setup may not cover spending needs without selling shares. For long-term accumulators who are reinvesting, the relatively low yield is fine, as retained earnings inside companies can fuel future growth. The presence of higher-yielding international and small value ETFs slightly boosts income while keeping the growth tilt intact.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Franklin FTSE Canada ETF 0.09%
  • Schwab International Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Schwab U.S. Large-Cap ETF 0.03%
  • Weighted costs total (per year) 0.12%

The blended total expense ratio (TER) of about 0.12% is impressively low for a portfolio that includes specialized factor ETFs like small value and quality. TER is basically the annual management fee as a percentage of assets. Over decades, even a difference of 0.2–0.3 percentage points per year can compound into a big gap in ending wealth, so keeping costs lean is a major advantage. The core Schwab and Franklin funds are especially efficient. This cost structure aligns very well with best practices and strongly supports better long-term performance by letting more of the gross returns stay in the portfolio rather than going to fees.

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