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A portfolio that thinks diversification is a buffet but only fills up on carbs

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 the adrenaline junkie of the investment world, someone who loves the thrill of the chase but might not have thought through the landing. It's for the investor with a high-risk tolerance, who dreams of outsized returns and believes they can stomach the inevitable volatility. This person likely has a shorter-term outlook, focusing on the potential for significant growth without as much concern for the bumps along the way. They're the type to ride the roller coaster with their hands in the air, eyes closed, screaming all the way down.

Positions

  • Vanguard Total World Stock Index Fund ETF Shares
    VT - US9220427424
    40.00%
  • Avantis® U.S. Small Cap Value ETF
    AVUV - US0250728773
    21.00%
  • Vanguard U.S. Minimum Volatility
    VFMV - US9219354092
    20.00%
  • Avantis® Emerging Markets Equity ETF
    AVEM - US0250726041
    10.00%
  • Avantis® International Small Cap Value ETF
    AVDV - US0250728021
    9.00%

At first glance, this portfolio screams "I want a bit of everything but don't understand portions." With a whopping 40% in a global stock ETF and significant chunks thrown at small-cap and minimum volatility ETFs, it's like preparing for a marathon by only running downhill. The idea might have been diversification, but it ended up looking like someone trying to make a salad out of different types of bread. A bit more balance wouldn't hurt, especially considering the heavy tilt towards specific ETFs and sectors.

Growth Info

Historical performance showing a CAGR of 13.43% with a max drawdown of -37.83% is like bragging about winning a race against toddlers. Sure, the numbers look good in a vacuum, but that drawdown is a red flag bigger than what you'd see at a bullfight. It suggests that when the market sneezes, this portfolio catches the flu. It's time to consider whether those days making up 90% of returns were just lucky breaks or sustainable strategy.

Projection Info

Monte Carlo simulations are like weather forecasts for your money, showing what could happen based on a whole lot of "ifs." With 971 out of 1,000 simulations turning up positive, it might seem like you're onto a winner. But remember, Monte Carlo also once predicted I'd be a millionaire by now. Take these projections with a grain of salt, and remember they're as reliable as a horoscope—fun to read but not something to base life decisions on.

Asset classes Info

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

With 99% in stocks and a lonely 1% in cash, this portfolio is like going to a party and only talking to one person the whole night. Sure, stocks are the life of the party, but ignoring bonds or alternative investments means you're missing out on a lot of interesting conversations. A little mingling could help smooth out the rough patches when the stock market decides to play hard to get.

Sectors Info

  • Technology
    18%
  • Financials
    16%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Health Care
    7%
  • Energy
    7%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Basic Materials
    4%
  • Utilities
    3%
  • Real Estate
    2%

The sector allocation here has a strong "tech and finance fan club" vibe, with a combined 34% of the portfolio cheering for these sectors. It's like betting on the popular kids to become prom king and queen—safe bets, until they're not. The underrepresentation of other sectors could leave you missing out on the underdog story of the decade. Diversification across sectors is crucial unless you enjoy roller coasters without the safety bar.

Regions Info

  • North America
    68%
  • Europe Developed
    9%
  • Asia Emerging
    7%
  • Asia Developed
    6%
  • Japan
    5%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Europe Emerging
    0%

With 68% allocated to North America, this portfolio has a serious home bias. It's like traveling to a foreign country and only eating at McDonald's. Yes, it's comfortable, but you're missing out on a world of flavors. Expanding your geographic horizons could not only spice up your portfolio but also reduce the risk of a domestic market downturn ruining your financial feast.

Market capitalization Info

  • Mega-cap
    23%
  • Large-cap
    22%
  • Mid-cap
    20%
  • Small-cap
    17%
  • Micro-cap
    15%

The market cap distribution here is like a middle school dance: a little awkward and heavily leaning towards one side. With a tilt towards small and micro-cap stocks, it's clear there's a love for potential high-growth stories, but remember, not all underdogs win the race. Balancing out with more mega and big-cap stocks could provide the stability of the chaperones at that dance.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.50%
  • Avantis® Emerging Markets Equity ETF 2.60%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Vanguard U.S. Minimum Volatility 1.70%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 1.95%

The dividend yield averaging out at 1.95% is like finding loose change under your couch cushions. It's a nice surprise but hardly a game-changer. Relying on dividends for income from this portfolio is like hoping those couch coins will pay your rent. A strategic look at higher-yielding options could add a nice cushion without sacrificing growth potential.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® Emerging Markets Equity ETF 0.33%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard U.S. Minimum Volatility 0.13%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.17%

With a Total Expense Ratio (TER) of 0.17%, at least you're not throwing money away on fees. It's one of the few areas where this portfolio doesn't need a life coach. Keeping costs low is like buying generic brands; the savings add up over time. Kudos for not letting the financial industry eat away at your returns with their gourmet pricing.

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.

This portfolio's approach to risk vs. return is like using a map from the '90s to navigate today's roads. Sure, you might get where you're going, but you're ignoring a lot of new information. The heavy tilt towards volatile small caps and a glaring omission of bonds or alternatives for balance shows a misunderstanding of the Efficient Frontier concept. It's not just about maximizing returns; it's about doing so with the least amount of risk necessary.

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