Outsmart Market Noise with a Global ETF Plan

‍A disciplined ETF strategy for long-term investors

When markets get noisy, staying the course requires more than optimism—it takes clarity, discipline, and data. The Classic Aggressive Portfolio by Quantlake embodies these principles. Built for investors focused on long-term capital growth, it offers a globally diversified, equity-heavy allocation—all through just six transparent, low-cost ETFs.

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Strategy Overview

Inspired by research from the American Association of Individual Investors (AAII) and grounded in the portfolio design principles championed by Vanguard, this strategy spans major market capitalizations and global geographies. Its structure is straightforward and intentional:

U.S. Equities

• 20% Vanguard S&P 500 ETF (VOO) – Large-cap exposure
  
• 20% Vanguard Mid-Cap ETF (VO) – Mid-size market leaders
  
• 20% Vanguard Small-Cap ETF (VB) – Growth potential in smaller firms
  
  

International Equities

• 20% Vanguard FTSE Developed Markets ETF (VEA) – Europe, Japan, and other developed markets
  
• 10% Vanguard FTSE Emerging Markets ETF (VWO) – Asia, Latin America, and beyond
  
  

Stability through Bonds

• 10% Vanguard Intermediate-Term Treasury ETF (VGIT) – U.S. government bonds for shock absorption
  
  

This diversified mix draws from evidence-backed asset allocation theory and the ethos of low-cost, broadly diversified investing.

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Systematic Rebalancing

Markets drift. Emotions creep in. That’s why this portfolio is reviewed quarterly, and rebalanced to stay aligned with its target weights.

Why this matters:

• Prevents performance chasing and panic selling
  
• Maintains consistent risk exposure over time
  
• Follows industry best practices for patient, long-term investors
  
  

Vanguard research shows that regular rebalancing, even once a year, can significantly reduce portfolio drift and volatility without compromising returns.

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Performance Snapshot (as of May 27, 2025)

‍CAGR: +9.6%

YTD: +4.5%

1Y: +10.6%

3Y: +30.1%

5Y: +70.8%

10Y: +115.4%

Max Drawdown: –33%

Sharpe Ratio: 0.5

Note: Performance data reflects simulated historical returns and does not guarantee future outcomes.

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Quantlake Risk Level: 4 – Moderate

Although the strategy is titled “Aggressive,” it strikes a thoughtful balance between growth and resilience.

• Equity-heavy allocation (90%) supports long-term capital appreciation
  
• 10% bond allocation provides a measure of stability and downside protection
  
• Quarterly rebalancing keeps the portfolio from drifting too far during strong bull or bear trends
  
• Diversification across regions and market caps helps smooth out idiosyncratic risk
  
  

On Quantlake’s 1-to-7 scale, this strategy earns a Risk Level of 4 – Moderate. That means it’s appropriate for investors with long-term goals and a moderate-to-high risk tolerance—those willing to weather temporary drawdowns in exchange for higher long-term returns.

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Why This Portfolio?

✔ Global Exposure
Spans the U.S., developed, and emerging markets

✔ Multi-Cap Tilt
Combines large-cap stability with mid- and small-cap growth drivers

✔ Low Cost, High Transparency
Only six ETFs, with expense ratios from 0.03% to 0.08%

✔ Behavioral Resilience
Systematic process reduces the risk of panic selling, FOMO buying, or chasing trends

✔ Effortless Monitoring
Quantlakers can follow portfolio performance and weight changes for free

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Invest with Confidence, Not Impulse

This strategy isn’t just about building wealth, it’s about building emotional resilience. Investors often fall into behavioral traps like:

• Selling during downturns
  
• Overtrading in response to news
  
• Overweighting recent winners
  
  

By sticking to a clear, rule-based system, you give yourself permission to stay patient, and let time and diversification do their job.

“In a world full of noise, the best strategy may be the one that helps you tune it out.”

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Final Note

Quantlakers can track this portfolio for free, view updated weights, and monitor quarterly rebalance dates, all in one place.

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Romain Gandon, CEO & Founder of Quantlake
🔗 LinkedIn

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‍Disclaimer: Performance data reflects simulated returns based on historical ETF prices and does not guarantee future results. Investing involves risks, including potential loss of principal. This strategy is informational and not personalized financial advice.‍