Growth-focused portfolio with a strong U.S. tilt and diversified international exposure

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio suits an investor seeking balanced growth with moderate to high risk tolerance and a long-term investment horizon. It prioritizes capital appreciation through a significant allocation to U.S. equities while incorporating international exposure to enhance diversification. Ideal for individuals comfortable with market volatility, aiming to build wealth over time through a diversified, growth-oriented strategy.

Positions

  • Vanguard S&P 500 ETF
    VOO - US9229083632
    60.00%
  • Avantis® U.S. Small Cap Value ETF
    AVUV - US0250728773
    20.00%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares
    VEA - US9219438580
    10.00%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares
    VWO - US9220428588
    10.00%

The portfolio predominantly consists of U.S. equities, with 60% in a Vanguard S&P 500 ETF, reflecting a strong bias towards large-cap American companies. A significant portion, 20%, is allocated to the Avantis® U.S. Small Cap Value ETF, aiming for growth through value-driven small-cap stocks. International diversification is achieved through 10% allocations each in Vanguard's Developed and Emerging Markets ETFs. This composition underscores a growth-oriented strategy with a broad diversification across market capitalizations and regions, albeit with a heavy U.S. concentration.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 15.44%, with a notable maximum drawdown of -36.21%. This performance indicates a robust growth trajectory, albeit with significant volatility. The days contributing to 90% of returns being concentrated in just 15 days highlight the portfolio's susceptibility to short-term market movements. Comparing this to benchmarks would suggest a relatively aggressive growth stance, with the drawdown underscoring the risk level associated with such a strategy.

Projection Info

Using Monte Carlo simulations, the portfolio's future performance range is vast, with a 5th percentile at a modest 10.8% growth and a median (50th percentile) projection of 328.1%. This wide range underscores the inherent uncertainty in market movements and the impact of extreme events. While the simulations predict a generally positive outlook, with 961 out of 1,000 simulations showing growth, investors should be prepared for variability and ensure their risk tolerance aligns with potential outcomes.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%
  • Other
    0%
  • No data
    0%

The portfolio's allocation reveals a nearly exclusive focus on equities, with 99% in stocks and a minimal cash reserve. This composition is indicative of a high-risk, high-reward strategy, suitable for investors with a long-term horizon and a higher risk tolerance. While this can offer significant growth potential, especially in bull markets, it also exposes the portfolio to market downturns, underscoring the importance of understanding volatility and risk.

Sectors Info

  • Technology
    24%
  • Financials
    19%
  • Consumer Discretionary
    12%
  • Industrials
    11%
  • Health Care
    8%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    6%
  • Basic Materials
    4%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation is well-diversified, with technology (24%) and financial services (19%) leading, followed by consumer cyclicals and industrials. This sector spread is reflective of a growth-oriented strategy, capitalizing on sectors that typically perform well in expanding economies. However, the heavy weighting in technology also implies higher volatility and sensitivity to market corrections, suggesting a need for periodic sector rebalancing to manage risk.

Regions Info

  • North America
    80%
  • Asia Emerging
    6%
  • Europe Developed
    6%
  • Asia Developed
    3%
  • Japan
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Australasia
    1%
  • Europe Emerging
    0%

Geographically, the portfolio is heavily weighted towards North America (80%), with modest exposure to emerging and developed markets outside the U.S. This distribution enhances growth potential through U.S. market performance but may limit global diversification benefits. Expanding into underrepresented regions could reduce geographical risk and tap into growth opportunities in other economies.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    27%
  • Mid-cap
    14%
  • Small-cap
    10%
  • Micro-cap
    10%

The market capitalization breakdown shows a balanced mix, with a significant tilt towards mega (37%) and big (27%) cap stocks, complemented by medium, small, and micro caps. This blend supports diversification across different company sizes, potentially smoothing out volatility and improving risk-adjusted returns. However, the emphasis on larger companies aligns with the portfolio's growth and stability objectives.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.70%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.61%

The portfolio's dividend yield stands at 1.61%, with individual ETF yields ranging from 1.20% to 2.80%. While not the primary focus, dividends contribute to total returns, offering a modest income stream alongside capital appreciation. For investors prioritizing growth, this yield is adequate, but those seeking higher income might consider reallocating towards assets with higher dividend yields.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.08%

With a total expense ratio (TER) of 0.08%, the portfolio benefits from low costs, enhancing net returns over time. This efficiency is particularly important in growth-focused strategies, where compounding plays a significant role. Keeping costs low while maintaining diversification is commendable and aligns with best practices for long-term investment success.

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.

The portfolio's current allocation suggests an efficient blend of risk and return, potentially lying near the Efficient Frontier. This indicates a well-considered balance between maximizing returns and minimizing risk for the given asset mix. However, continuous monitoring and rebalancing are essential to maintain this efficiency, especially considering market fluctuations and changing investment landscapes.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.