A growth-focused portfolio with high exposure to US markets and diversified international investments

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, high risk tolerance, and a long-term investment horizon. It's designed for individuals comfortable with market fluctuations, seeking substantial returns over time through diversified equity exposure. The investor likely prioritizes capital appreciation over income and is prepared to withstand periods of high volatility for the potential of higher long-term gains.

Positions

  • Vanguard S&P 500 ETF
    VOO - US9229083632
    50.00%
  • Avantis® U.S. Small Cap Value ETF
    AVUV - US0250728773
    20.00%
  • Avantis® International Small Cap Value ETF
    AVDV - US0250728021
    10.00%
  • 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 is structured with a significant emphasis on equity, comprising 50% in a large-cap ETF that tracks the S&P 500, 20% in a U.S. small-cap value ETF, and the remaining 30% split evenly between international small-cap, developed markets, and emerging markets ETFs. This composition reflects a strategic blend of large-cap stability and small-cap growth potential, alongside geographic diversification to mitigate risk and capture global market opportunities.

Growth Info

Historically, this portfolio has demonstrated a robust Compound Annual Growth Rate (CAGR) of 15.11%, with a maximum drawdown of -37.14%. These figures suggest a strong performance with the ability to recover from market downturns, albeit with a significant volatility indicative of its growth-oriented strategy. The concentrated returns on specific days underscore the importance of remaining invested through market cycles for optimal growth.

Projection Info

Utilizing Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes with a median increase of 368.7%. However, it's crucial to remember that these projections are hypothetical and subject to the limitations of past performance as a predictor of future results. The simulations reinforce the portfolio's growth potential while highlighting the inherent uncertainties in investing.

Asset classes Info

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

With a 99% allocation to stocks and 1% in cash, the portfolio is heavily tilted towards equities, underscoring its growth focus. This asset class distribution is typical for investors aiming for higher returns, albeit with increased risk. The absence of bonds or other asset classes suggests a higher risk tolerance, relying on stock market performance for gains.

Sectors Info

  • Technology
    21%
  • Financials
    19%
  • Consumer Discretionary
    13%
  • Industrials
    12%
  • Health Care
    7%
  • Telecommunications
    7%
  • Energy
    6%
  • Consumer Staples
    6%
  • Basic Materials
    5%
  • Utilities
    2%
  • Real Estate
    2%

The sectoral allocation is well-diversified, with technology and financial services leading at 21% and 19%, respectively. This is followed by consumer cyclicals, industrials, and a spread across healthcare, communication services, and other sectors. Such diversity helps in mitigating sector-specific risks, although the tech-heavy focus could expose the portfolio to higher volatility in response to market changes.

Regions Info

  • North America
    72%
  • Europe Developed
    10%
  • Asia Emerging
    6%
  • Japan
    5%
  • Asia Developed
    3%
  • Africa/Middle East
    2%
  • Australasia
    2%
  • Latin America
    1%
  • Europe Emerging
    0%

Geographically, the portfolio is predominantly invested in North America (72%), with strategic allocations in developed Europe (10%), Asia Emerging (6%), and other regions. This distribution benefits from the stability and growth of the U.S. market while leveraging potential upsides in international markets. However, the heavy U.S. concentration may suggest a need for increased international exposure to enhance global diversification.

Market capitalization Info

  • Mega-cap
    32%
  • Large-cap
    23%
  • Mid-cap
    17%
  • Small-cap
    14%
  • Micro-cap
    11%

The market capitalization breakdown reveals a balanced approach, with 32% in mega, 23% in big, and a combined 31% in medium, small, and micro-caps. This reflects a strategic blend aimed at capturing growth across different company sizes, although the emphasis on larger companies aligns with the portfolio's growth and stability objectives.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.80%
  • 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) 1.87%

The dividend yields across the ETFs contribute to the portfolio's total yield of 1.87%, adding a modest income component to the growth-focused strategy. While dividends are not the primary objective, they offer a supplementary return stream that can enhance overall performance, particularly in volatile or bearish markets.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • 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) 0.11%

The portfolio's total expense ratio (TER) of 0.11% is impressively low, maximizing the potential for net returns. This cost efficiency is crucial for long-term growth, as lower expenses directly translate to higher investment earnings over time. The focus on low-cost ETFs is a strategic advantage in managing and optimizing the portfolio's performance.

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.

Considering the Efficient Frontier, this portfolio appears to be positioned for optimal risk-return trade-offs based on its current composition. However, continuous reassessment is vital to ensure it remains aligned with changing market conditions and personal investment goals. Adjustments may be needed to maintain the desired efficiency level, especially in response to evolving risk tolerance and investment horizon.

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