Growth oriented heavily US equity portfolio with value tilt and concentrated sector exposures

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 capital appreciation with a moderately high tolerance for volatility and a multi-year to multi-decade time horizon. The investor is comfortable with concentrated equity risk accepts significant short-term drawdowns for higher expected long-term returns and prioritizes growth over current income. Typical goals include retirement wealth accumulation or long-term wealth creation rather than immediate cash flow. Such an investor should be willing to tolerate market swings and have limited near-term liquidity needs while periodically rebalancing to maintain intended risk exposure.

Positions

  • Dimensional U.S. Targeted Value ETF
    DFAT - US25434V6092
    50.00%
  • Dimensional ETF Trust
    DUHP - US25434V8312
    20.00%
  • Vanguard S&P 500 ETF
    VOO - US9229083632
    20.00%
  • Invesco QQQ Trust
    QQQ - US46090E1038
    10.00%

The portfolio is concentrated in four ETFs with a 50% allocation to a U.S. targeted value ETF and the rest split among broad and growth ETFs 20% Dimensional 20% S&P 500 10% QQQ. All positions are equities so asset class weight is 100% stocks. This matters because heavy single-asset-class exposure increases sensitivity to market swings and removes ballast that bonds or alternatives provide. Recommendation: consider reducing overlapping exposures among broad and growth ETFs and introduce at least one low-correlation asset class to improve resilience without changing the overall growth objective.

Growth Info

A hypothetical $10,000 invested and compounded at the reported CAGR of 13.90% would grow substantially over a decade illustrating strong historical growth but with a meaningful maximum drawdown of −21.48%. CAGR means Compound Annual Growth Rate it measures average yearly growth like average speed on a trip. The fact that 90% of returns came from only 12 days highlights concentration of positive returns and the importance of staying invested through volatility. Recommendation: maintain a long-term perspective but add volatility dampeners if the investor cannot tolerate intermittent large losses.

Projection Info

The Monte Carlo simulation used here runs many randomized future return paths based on historical averages and volatility to show possible outcomes; it is not a prediction but a range of scenarios. Results show a wide spread from a 5th percentile ending near 80.5% to a median near 549.4% of starting capital and 67th percentile higher still. This illustrates both upside potential and downside risk. Simulations assume past relationships persist which may not hold. Recommendation: use Monte Carlo as a planning tool for range of outcomes and pair it with downside protection strategies if needed.

Asset classes Info

  • Stocks
    100%
  • Cash
    0%

With 100% allocated to equities the portfolio lacks fixed income or cash cushions which commonly reduce portfolio volatility and provide liquidity. Typical diversified benchmarks include bonds or cash which lower short-term volatility and smooth returns. All-equity allocations can accelerate growth but also amplify drawdowns and sequence-of-returns risk for withdrawals. Recommendation: introduce a small allocation to high-quality bonds or cash equivalents or to non-correlated alternatives depending on spending needs and risk tolerance to improve diversification while keeping a growth posture.

Sectors Info

  • Technology
    23%
  • Financials
    19%
  • Consumer Discretionary
    13%
  • Industrials
    12%
  • Health Care
    9%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Energy
    6%
  • Basic Materials
    3%
  • Real Estate
    1%
  • Utilities
    1%

Sector exposure is tilted toward Technology 23% Financials 19% Consumer Cyclicals 13% and Industrials 12% with lighter weights in defensive areas. Sector concentration influences sensitivity to macro themes such as rate moves growth cycles and consumer demand. For example a tech-heavy exposure can increase volatility during interest-rate shifts while financials react to credit cycles. The current mix provides growth orientation but less protection in defensive downturns. Recommendation: rebalance sector tilts or add defensive or countercyclical exposures to reduce sensitivity to any single macro scenario.

Regions Info

  • North America
    99%
  • Latin America
    1%
  • Europe Developed
    0%
  • Asia Emerging
    0%
  • Asia Developed
    0%
  • Africa/Middle East
    0%

Geographic exposure is overwhelmingly North America at 99% with only 1% Latin America and effectively zero developed Europe or Asia exposure. Heavy home bias reduces benefits of international diversification such as different economic cycles currency exposure and sector composition. This concentration increases single-region geopolitical regulatory and economic risk. Recommendation: consider modest allocations to developed international and emerging markets to capture broader growth opportunities and reduce dependency on one economic region while keeping overall portfolio risk in check.

Market capitalization Info

  • Small-cap
    30%
  • Mega-cap
    22%
  • Large-cap
    18%
  • Micro-cap
    18%
  • Mid-cap
    12%

Market-capitalization exposure shows a meaningful tilt to smaller companies with Small 30% Micro 18% combined nearly half of the portfolio and Mega 22% Big 18% Medium 12%. Small and micro caps historically offer higher growth potential but also higher volatility and lower liquidity compared with mega-cap names. This mix explains part of the elevated CAGR and the sizable drawdowns. Recommendation: review the desired small-cap premium versus the tolerance for volatility and consider gradually moderating the smallest-cap exposures or adding more mega-cap stability if liquidity or drawdown concerns exist.

Redundant positions Info

  • Dimensional ETF Trust
    Vanguard S&P 500 ETF
    Invesco QQQ Trust
    High correlation

Several holdings move closely together and a highly correlated group includes the Dimensional ETF Trust Vanguard S&P 500 ETF and Invesco QQQ Trust. Correlation measures how similarly assets move where a value near 1 means they trend together reducing diversification benefits. High correlation can leave a portfolio vulnerable in broad market downturns because hedging within the same asset class fails to reduce loss. Recommendation: replace one or more overlapping ETFs with assets that exhibit lower correlation such as international equities value or alternative factors to improve true diversification.

Dividends Info

  • Dimensional U.S. Targeted Value ETF 1.40%
  • Dimensional ETF Trust 1.10%
  • Invesco QQQ Trust 0.50%
  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 1.19%

The portfolio yield averages about 1.19% with the targeted value ETF at 1.40% and the large-cap funds around 1.10% while QQQ yields ~0.50%. Dividend yield provides a steady cash return component and can temper total return volatility especially for income-oriented investors. In a growth-focused allocation the current yield is modest which reflects the equity growth orientation and significant tech exposure. Recommendation: if steady income is a goal consider complementing growth positions with higher-yielding assets or bonds while keeping overall yield and tax implications in mind.

Ongoing product costs Info

  • Dimensional U.S. Targeted Value ETF 0.28%
  • Dimensional ETF Trust 0.22%
  • Invesco QQQ Trust 0.20%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.21%

Total TER for the blended portfolio is low at about 0.21% driven down significantly by the very low-cost Vanguard S&P 500 ETF at 0.03%. TER meaning Total Expense Ratio is the annual cost of running a fund similar to a recurring fee that erodes returns over time. Lower costs compound into meaningful long-term benefits so the current cost structure is a strength. Recommendation: maintain low-cost core holdings and consider replacing higher-fee overlapping ETFs with lower-cost equivalents to preserve returns while improving diversification.

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.

Efficient Frontier optimization identifies portfolios that offer the best expected return for a given level of risk within the set of current assets. The analysis here suggests an improved expected return near 16.05% at an implied risk level of 18.27% when redundant correlated assets are removed or reweighted. Efficient Frontier means plotting portfolios that are efficient trade-offs between risk and return; it uses historical returns variances and correlations. Recommendation: before running a formal optimization remove overlapping assets and add distinct uncorrelated instruments so the efficient frontier analysis yields practically implementable allocations.

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