Balanced and globally diversified portfolio with a strategic focus on growth and value across major sectors

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

The portfolio is well-structured, emphasizing global equities with a 50% allocation to a total world stock index, ensuring broad exposure. The presence of momentum and growth ETFs alongside value-oriented funds suggests a balanced approach to capturing market upswings while seeking undervalued assets. The diversification across growth and value, complemented by a strategic tilt towards momentum in both the U.S. and international developed markets, aims to enhance returns while managing risk. This composition aligns with a balanced risk profile, aiming for growth with a mindful approach to volatility.

Growth Info

Historical performance, with a Compound Annual Growth Rate (CAGR) of 11.38% and a maximum drawdown of -24.85%, indicates resilience and the potential for recovery in adverse market conditions. The days contributing to 90% of returns highlight the impact of significant market movements on performance. Comparing this to benchmarks could provide insight into the portfolio's relative risk and return characteristics. The strong historical performance, particularly in the context of its balanced risk classification, suggests an effective strategy in navigating market cycles.

Projection Info

Monte Carlo simulations, projecting a median increase of 339.6% in portfolio value, underscore the potential for substantial long-term growth. The wide range of outcomes, from the 5th to 67th percentiles, illustrates the inherent uncertainty in financial markets. While these simulations offer valuable insights, they rely on historical data and cannot predict future market conditions with certainty. Investors should consider these projections as one of many tools in assessing potential risk and return.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's 99% allocation to stocks, with a minimal cash reserve, is indicative of a growth-oriented strategy with a higher risk tolerance. This heavy equity focus enhances potential returns but also increases volatility. The absence of bonds and other asset classes limits opportunities for risk reduction through diversification. For a balanced portfolio, incorporating a mix of asset classes could provide a buffer against stock market fluctuations and reduce overall volatility.

Sectors Info

  • Technology
    22%
  • Financials
    20%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Telecommunications
    8%
  • Health Care
    8%
  • Consumer Staples
    7%
  • Basic Materials
    4%
  • Energy
    4%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation shows a heavy emphasis on technology and financial services, which may offer high growth potential but also expose the portfolio to sector-specific risks. The balanced spread across industrials, consumer cyclicals, and healthcare suggests an attempt to mitigate this risk through diversification. However, the concentration in high-growth sectors could lead to increased volatility in response to market or economic shifts. Broadening exposure to include more defensive sectors might offer stability in different market conditions.

Regions Info

  • North America
    65%
  • Europe Developed
    18%
  • Japan
    7%
  • Asia Emerging
    3%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic distribution underscores a strong bias towards North America and developed European markets, with moderate exposure to Japan and emerging markets. This allocation leverages the stability and growth potential of developed economies while maintaining a limited presence in higher-risk emerging markets. To enhance diversification and potentially capture higher growth rates, increasing exposure to underrepresented regions could be beneficial, albeit with a careful assessment of the associated risks.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    32%
  • Mid-cap
    18%
  • Small-cap
    5%
  • Micro-cap
    1%

The portfolio's focus on mega and large-cap stocks aligns with its balanced risk profile, leveraging the stability and potential for steady growth of established companies. Medium, small, and micro-cap stocks, though less represented, introduce growth opportunities and diversification benefits. A slight adjustment to include more small and medium-cap stocks could enhance potential returns, acknowledging the increased volatility and risk associated with smaller companies.

Redundant positions Info

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

The high correlation observed between certain international small cap and value ETFs suggests redundancy, which may limit the portfolio's diversification benefits. Identifying and reducing overlapping exposures can enhance the portfolio's efficiency by eliminating redundant positions without sacrificing potential returns. This adjustment would refine the portfolio's composition, focusing on unique contributions from each holding.

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 recommendation to remove highly correlated assets for optimization aligns with the principle of diversification. By adjusting the asset allocation to minimize overlap, the portfolio can achieve a more efficient risk-return profile. This optimization process, guided by the Efficient Frontier concept, seeks to enhance returns for a given level of risk. While the current composition is strong, this refinement could further improve performance without significantly altering the portfolio's risk characteristics.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.70%
  • Dimensional International Value ETF 3.30%
  • Invesco S&P International Developed Momentum ETF 2.00%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard International Dividend Appreciation Index Fund ETF Shares 1.80%
  • 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) 1.68%

With a total yield of 1.68%, the portfolio offers a moderate income component, contributing to total returns. The varying dividend yields across ETFs reflect a balance between growth-oriented investments with lower yields and value-focused assets with higher income potential. For investors seeking both growth and income, this blend supports capital appreciation while providing a steady income stream, though opportunities to optimize dividend income without compromising growth objectives may exist.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Dimensional International Value ETF 0.27%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard International Dividend Appreciation Index Fund ETF Shares 0.15%
  • 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) 0.12%

The portfolio's average total expense ratio (TER) of 0.12% is impressively low, enhancing net returns. This cost efficiency is crucial for long-term growth, as lower costs directly translate to higher investment returns. The varied TERs among the ETFs highlight the importance of cost awareness in fund selection. Maintaining this focus on cost efficiency will be vital in preserving the portfolio's competitive edge.

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