Growth-oriented portfolio with a strong focus on stocks and geographical diversity

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 is best suited for an investor with a growth-oriented profile, comfortable with higher risk levels for the potential of substantial returns. The investor likely has a long-term horizon, allowing them to ride out market volatility and benefit from the compounding of returns. Their moderate to high risk tolerance supports the portfolio's heavy equity weighting and sectoral concentration, particularly in technology and financial services.

Positions

  • Vanguard Total Stock Market Index Fund ETF Shares
    VTI - US9229087690
    60.00%
  • Vanguard Total International Stock Index Fund ETF Shares
    VXUS - US9219097683
    20.00%
  • Avantis® U.S. Small Cap Value ETF
    AVUV - US0250728773
    5.00%
  • BRANDES INTERNATIONAL SMALL CAP EQUITY FUND CLASS I
    BISMX - US1052627379
    5.00%
  • VANGUARD NEW YORK LONG-TERM TAX-EXEMPT FUND ADMIRAL SHARES
    VNYUX - US92204H3012
    5.00%
  • Vanguard Growth Index Fund ETF Shares
    VUG - US9229087369
    5.00%

The portfolio is heavily weighted towards equities, with a 60% allocation in the Vanguard Total Stock Market Index Fund ETF Shares, 20% in the Vanguard Total International Stock Index Fund ETF Shares, and smaller allocations across other equity-focused ETFs and funds. This composition suggests a growth-oriented strategy, leveraging broad market exposure through major ETFs. The inclusion of small-cap and international small-cap equities, alongside a modest bond position, indicates an attempt at diversification beyond large-cap stocks.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 15.27% and a maximum drawdown of -33.84%, the portfolio's historical performance demonstrates solid growth potential tempered by significant volatility. The days contributing most to returns highlight the impact of short-term market movements on overall performance. Comparing this to benchmark indices could provide further insight into relative performance, especially during downturns.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 520.4% in portfolio value, underscoring the growth potential. However, the significant spread between the 5th and 67th percentiles indicates considerable uncertainty. This method, while useful for illustrating potential futures, relies on historical data, which may not predict future market conditions accurately.

Asset classes Info

  • Stocks
    94%
  • Bonds
    5%
  • Cash
    1%
  • Other
    0%
  • No data
    0%

The 94% allocation to stocks, with the remainder in bonds and cash, positions this portfolio for growth but also exposes it to higher market volatility. This asset class distribution is typical for growth-oriented investors willing to accept more risk for the chance of higher returns. Comparing this allocation to a more conservative benchmark could help in understanding the risk-return trade-off.

Sectors Info

  • Technology
    26%
  • Financials
    15%
  • Industrials
    11%
  • Consumer Discretionary
    10%
  • Health Care
    8%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    2%
  • Consumer Discretionary
    0%

The sector allocation, with a significant emphasis on technology and financial services, aligns with a growth-focused investment strategy. However, the heavy concentration in tech could expose the portfolio to sector-specific downturns. Diversifying across additional sectors could mitigate this risk while still targeting growth.

Regions Info

  • North America
    72%
  • Europe Developed
    10%
  • Unknown
    5%
  • Japan
    4%
  • Asia Emerging
    3%
  • Asia Developed
    3%
  • Latin America
    1%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Europe Emerging
    0%

The portfolio's geographic allocation, with a 72% emphasis on North America and diversified exposure to developed and emerging markets, supports global growth opportunities. However, the underrepresentation of emerging markets might limit exposure to high-growth regions. Balancing developed and emerging market exposure could enhance growth potential and diversification.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    26%
  • Mid-cap
    18%
  • Small-cap
    9%
  • Micro-cap
    4%

The market capitalization breakdown, favoring mega and big-cap stocks, aligns with the portfolio's growth and stability goals. Including small and micro-cap stocks introduces growth potential but also adds volatility. Reevaluating the balance between market cap categories could optimize risk and return.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Vanguard Growth Index Fund ETF Shares
    High correlation

The high correlation between the Vanguard Total Stock Market Index Fund ETF Shares and the Vanguard Growth Index Fund ETF Shares suggests overlap in holdings, potentially limiting diversification benefits. Identifying and reducing overlapping exposures can enhance the portfolio's risk-adjusted performance.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • BRANDES INTERNATIONAL SMALL CAP EQUITY FUND CLASS I 1.20%
  • VANGUARD NEW YORK LONG-TERM TAX-EXEMPT FUND ADMIRAL SHARES 2.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.48%

The portfolio's dividend yield of 1.48% contributes to total returns, balancing growth with income generation. The variation in yields across holdings reflects the trade-off between growth and income. For investors prioritizing growth, reinvesting dividends could compound returns over time.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • BRANDES INTERNATIONAL SMALL CAP EQUITY FUND CLASS I 1.11%
  • VANGUARD NEW YORK LONG-TERM TAX-EXEMPT FUND ADMIRAL SHARES 0.09%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.10%

With a Total Expense Ratio (TER) of 0.10%, the portfolio is cost-efficient, enhancing long-term growth potential by minimizing drag on returns. The range of individual TERs from 0.03% to 1.11% indicates a balance between cost and specialized exposure. Continuously monitoring and managing costs can sustain this efficiency.

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 risk-return profile could be optimized by addressing the high correlation between certain assets. Utilizing the Efficient Frontier concept, reallocating investments to reduce overlap and improve diversification could enhance the portfolio's performance relative to its risk level.

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