Growth tilted balanced portfolio with strong US focus and meaningful small cap value 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

Balanced Investors

This setup fits an investor who is comfortable with meaningful stock market swings in pursuit of strong long-term growth. Risk tolerance is moderate-to-high: short-term drops of 20 to 30 percent are acceptable as long as the long-run trajectory remains upward. Goals might include building wealth for retirement, funding future education needs, or growing a legacy over a 15-year-plus horizon. Income today is less important than total return tomorrow. This kind of investor often values low costs, simple index-based structures, and a clear philosophy, and is willing to stay invested through bear markets instead of trying to time every twist and turn.

Positions

  • Invesco NASDAQ 100 ETF
    QQQM - US46138G6492
    30.00%
  • Vanguard S&P 500 ETF
    VOO - US9229083632
    30.00%
  • Avantis® International Small Cap Value ETF
    AVDV - US0250728021
    15.00%
  • Avantis® U.S. Small Cap Value ETF
    AVUV - US0250728773
    15.00%
  • Vanguard Total International Stock Index Fund ETF Shares
    VXUS - US9219097683
    10.00%

This portfolio is built entirely from stock ETFs, with roughly 60 percent in broad large cap US, 30 percent in focused small cap value (US and international), and about 10 percent in broad international. Against a typical “balanced” benchmark that mixes stocks and bonds, this is clearly more growth-tilted and equity-heavy. That matters because all returns and volatility will track stock market behavior, with no bond cushion during big drops. The structure is very intentional and clean though: a core of broad indexes plus tilts toward small cap value and international. Anyone using this setup might think about whether they truly want “all stock” risk despite a balanced label.

Growth Info

Historically, the portfolio has delivered a very strong 17.21 percent CAGR, meaning a 10,000 dollar starting amount would have grown to about 49,000 dollars over ten years if that rate persisted. CAGR, or Compound Annual Growth Rate, is like your average yearly speed on a long road trip, smoothing bumps along the way. The max drawdown of about negative 26 percent shows that big temporary losses have happened, but not to an extreme degree for an all-stock mix. Compared with a classic 60/40 stock-bond benchmark, this growth profile is higher, but so is the bumpiness. It is crucial to remember that past performance cannot guarantee anything about future returns.

Projection Info

The Monte Carlo results show a wide range of possible future outcomes. Monte Carlo simulation basically takes the historical return and volatility patterns, scrambles them thousands of times, and builds many “what if” paths to see where a portfolio might end up. Here, even the 5th percentile scenario more than doubles the starting value, while the median and upper ranges are multiples higher. An 18.63 percent annualized return across simulations looks very optimistic and reflects strong past data. Still, simulations assume that future markets behave similarly to the past, which is a big if. These numbers are best viewed as rough scenarios, not promises or guarantees.

Asset classes Info

  • Stocks
    100%
  • Cash
    0%
  • Other
    0%
  • No data
    0%

The portfolio is 100 percent in stocks, with no bonds, cash, or alternatives playing a role. From a diversification angle, this is focused diversification within one asset class rather than broad diversification across multiple types of investments. That’s important because, in major stock market downturns, everything here is likely to move down together, even if some parts fall less than others. Classic balanced benchmarks would hold meaningful bond exposure to soften those hits. This all-equity design suits someone prioritizing long-term growth over short-term stability. Anyone wanting a smoother ride might consider introducing more defensive assets over time, especially as big life goals or retirement dates approach.

Sectors Info

  • Technology
    29%
  • Consumer Discretionary
    14%
  • Financials
    13%
  • Industrials
    11%
  • Telecommunications
    9%
  • Health Care
    6%
  • Basic Materials
    6%
  • Energy
    5%
  • Consumer Staples
    4%
  • Utilities
    2%
  • Real Estate
    1%

Sector exposure is nicely spread, with technology leading but not overwhelming, and healthy weights in consumer, financials, industrials, and other areas. This profile actually lines up reasonably well with broad market benchmarks, which is a good sign for diversification. A roughly 29 percent tilt to technology and solid stakes in growth-sensitive sectors means the portfolio will be responsive to economic cycles and interest-rate moves. For example, tech and consumer names can be more volatile when borrowing costs rise. The presence of more cyclical and value-oriented sectors from the small cap value funds helps balance out the growth-heavy NASDAQ 100 slice, giving a mix of “fast growers” and more traditional businesses.

Regions Info

  • North America
    76%
  • Europe Developed
    10%
  • Japan
    6%
  • Australasia
    2%
  • Asia Emerging
    2%
  • Asia Developed
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Europe Emerging
    0%

Geographically, the portfolio is clearly US-heavy, with about three-quarters in North America and the rest scattered across developed and emerging markets. This lines up with many US investor benchmarks that lean toward domestic markets, and it has been beneficial over the last decade as US stocks outperformed many regions. However, this tilt means results are strongly tied to the health of the US economy, policy, and currency. The modest exposure to Europe, Japan, and emerging markets does add some global diversification, which is positive, but international weights sit below many global market-cap benchmarks. Some investors choose to increase foreign exposure to reduce “home country” risk, especially over very long horizons.

Market capitalization Info

  • Mega-cap
    33%
  • Large-cap
    25%
  • Mid-cap
    19%
  • Small-cap
    14%
  • Micro-cap
    8%

Market cap exposure covers the full spectrum, from mega caps down to micro caps, with roughly one-third in mega, another quarter in big, and the rest spread across mid, small, and micro. This blend is more diversified than many simple large-cap index portfolios and aligns nicely with academic research that small caps can offer higher long-term return potential, though with more volatility. Small and micro caps can move more sharply in both directions and may react strongly to economic shocks or changes in credit conditions. The combination of broad large caps plus deliberate small cap value tilts gives a robust size mix that supports growth, while acknowledging that the ride can be choppier at times.

Dividends Info

  • Avantis® International Small Cap Value ETF 2.80%
  • Avantis® U.S. Small Cap Value ETF 1.50%
  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 3.00%
  • Weighted yield (per year) 1.42%

The total yield of about 1.42 percent is on the modest side, reflecting the strong growth orientation and significant NASDAQ 100 and S&P 500 exposure. Dividend yield is simply the cash paid out yearly divided by the investment value, like interest from a savings account but not guaranteed. The higher yields from international and small cap value funds help offset the very low yield from the NASDAQ-focused piece. For an investor focused on total return rather than income, this setup is perfectly reasonable and aligns with growth benchmarks. Someone prioritizing regular cash flow would usually look for a higher yield or add more income-focused holdings over time.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.15%

The overall cost level, with a total expense ratio around 0.15 percent, is impressively low for such a thoughtfully built portfolio. Expense ratios are like a small annual “membership fee” taken directly from fund assets; keeping them low leaves more return in your pocket, especially over decades. The blend of ultra-low-cost broad Vanguard funds and slightly higher-cost, more specialized Avantis funds strikes a sensible balance. Costs here compare very favorably with many actively managed solutions and even with lots of model portfolios. From a fee perspective, this setup is on a strong footing and already aligned with best practices for long-term investing 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.

On a risk–return basis, this portfolio likely sits above a traditional 60/40 balanced mix on the Efficient Frontier for the given set of equity assets but carries more volatility. The Efficient Frontier is just a curve that shows the best possible trade-offs between risk and return for a given menu of investments. Within the current lineup, shifting weights slightly between the broad core funds and the small cap value tilts could nudge the mix toward a more “efficient” point, meaning a better return per unit of risk. It is worth remembering that “efficient” does not automatically mean “best overall,” because goals like income stability or low drawdowns might point in a different direction.

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