Growth-focused portfolio with an emphasis on ETFs and a high diversification score

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 horizon. It prioritizes steady returns while maintaining exposure to global equities, making it ideal for individuals looking to build wealth over time. The strategic inclusion of gold and tail risk ETFs indicates a cautious approach to risk management, appealing to those who are growth-oriented but wary of market downturns.

Positions

  • WisdomTree Efficient Gold Plus Equity Strategy Fund
    GDE - US97717Y5684
    25.00%
  • ProShares UltraPro S&P500
    UPRO - US74347X8645
    25.00%
  • Vanguard Total International Stock Index Fund ETF Shares
    VXUS - US9219097683
    20.00%
  • PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund
    ZROZ - US72201R8824
    20.00%
  • EA Series Trust - Alpha Architect Tail Risk ETF
    CAOS - US02072L5167
    10.00%

This portfolio is structured around a core of ETFs, with a significant allocation towards both equity and fixed-income assets, complemented by a strategic position in gold and tail risk strategies. The 25% allocation to both the WisdomTree Efficient Gold Plus Equity Strategy Fund and the ProShares UltraPro S&P500 ETF indicates a blend of growth orientation and hedging against market volatility. The Vanguard Total International Stock Index Fund ETF and the PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF diversify the portfolio geographically and across asset classes, while the Alpha Architect Tail Risk ETF introduces a layer of downside protection.

Growth Info

Historically, this portfolio has shown a remarkable Compound Annual Growth Rate (CAGR) of 26.42%, with a notable maximum drawdown of -25.49%. This performance suggests a relatively high return potential but comes with significant volatility, as evidenced by the substantial drawdown. The days contributing most to returns indicate that gains are concentrated in short bursts, emphasizing the importance of staying invested through market cycles to capture these peaks.

Projection Info

Monte Carlo simulations project a wide range of outcomes, highlighting the portfolio's growth potential and risks. With 997 out of 1,000 simulations showing positive returns, the median projected increase is substantial. However, these simulations, based on historical data, carry the limitation that past performance is not indicative of future results. They are useful for understanding potential volatility and return distributions but should not be the sole basis for investment decisions.

Asset classes Info

  • Stocks
    80%
  • Bonds
    20%
  • Other
    3%
  • No data
    0%

The portfolio's 80% allocation to stocks, 20% to bonds, and a small portion in 'Other' categories reflects a growth-oriented strategy with a moderate cushion against market dips. This balance between equities and fixed income is typical for growth investors seeking substantial returns while mitigating risks through diversification across asset classes.

Sectors Info

  • Technology
    24%
  • Financials
    13%
  • Consumer Discretionary
    8%
  • Telecommunications
    8%
  • Industrials
    8%
  • Health Care
    7%
  • Consumer Staples
    4%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation is broad, with a strong tilt towards technology, financial services, and a diversified spread across consumer cyclicals, industrials, and healthcare. This sector distribution supports the portfolio's growth objectives but may expose it to sector-specific risks, such as regulatory changes or economic cycles affecting technology and financial services more acutely.

Regions Info

  • North America
    61%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    0%
  • Europe Emerging
    0%

With 61% of assets in North America and a spread across developed and emerging markets in Europe and Asia, the portfolio is well-positioned to capture global growth. However, the minimal exposure to Latin America and Africa/Middle East, along with a modest presence in emerging markets, suggests room for increased geographical diversification to tap into high-growth economies outside the developed world.

Market capitalization Info

  • Mega-cap
    35%
  • Large-cap
    25%
  • Mid-cap
    13%
  • Small-cap
    1%
  • Micro-cap
    0%

The focus on mega and large-cap stocks (60% combined) aligns with the portfolio's growth and stability goals, as these companies tend to be more resilient during market downturns. However, the limited exposure to small and micro-caps means potentially missing out on higher growth opportunities offered by smaller companies.

Dividends Info

  • WisdomTree Efficient Gold Plus Equity Strategy Fund 4.60%
  • ProShares UltraPro S&P500 0.80%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund 4.60%
  • Weighted yield (per year) 2.83%

The overall dividend yield of 2.83% contributes to the portfolio's total return, balancing the growth with income generation. The yields from the gold strategy fund and the zero coupon treasury ETF are particularly noteworthy, providing a steady income stream alongside capital appreciation potential.

Ongoing product costs Info

  • EA Series Trust - Alpha Architect Tail Risk ETF 0.63%
  • WisdomTree Efficient Gold Plus Equity Strategy Fund 0.20%
  • ProShares UltraPro S&P500 0.92%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund 0.15%
  • Weighted costs total (per year) 0.38%

With a total Expense Ratio (TER) of 0.38%, the portfolio is efficiently managed cost-wise. The variation in individual ETF costs, from the low-cost Vanguard Total International Stock Index Fund ETF to the higher-cost ProShares UltraPro S&P500, reflects a strategic choice to balance cost with potential return. Reducing costs further, where possible, could enhance long-term returns without significantly altering the risk profile.

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 configuration is close to the Efficient Frontier, indicating an optimal risk-return balance given the current asset allocation. However, the suggestion that a more efficient portfolio could achieve a higher expected return at a slightly increased risk level (6.17%) invites a review of risk tolerance and investment objectives. Adjusting allocations to further optimize the portfolio could involve increasing exposure to assets with higher expected returns but also higher volatility.

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