Growth-focused portfolio with heavy emphasis on stocks and low diversification

Report created on Aug 19, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is predominantly invested in equities, with a 70% allocation to a global stock ETF, and the remaining 30% split evenly between a U.S. small-cap value ETF and an S&P 500 momentum ETF. This composition indicates a strong growth orientation but comes with a low diversification score, primarily due to the heavy reliance on stock ETFs and minimal exposure to other asset classes or geographical regions outside of those implicitly covered by the global stock ETF.

Growth Info

Historically, the portfolio has shown impressive performance with a Compound Annual Growth Rate (CAGR) of 15.48%. However, it's essential to note that it experienced a maximum drawdown of -35.45%, highlighting the volatility and risk associated with its growth-focused strategy. The days contributing to 90% of returns being limited to 17 suggests significant performance spikes rather than steady growth.

Projection Info

Monte Carlo simulations project a wide range of potential outcomes, with the median suggesting a 691.8% return. Such projections, while optimistic, underscore the inherent uncertainty and risk in the portfolio's aggressive growth strategy. It's crucial to remember that these simulations are based on historical data and cannot guarantee future performance.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is nearly entirely in stocks (99%), with a minimal cash holding (1%). This allocation supports its growth objectives but limits diversification across asset classes, potentially increasing volatility and risk during market downturns.

Sectors Info

  • Technology
    23%
  • Financials
    19%
  • Consumer Discretionary
    12%
  • Industrials
    12%
  • Telecommunications
    8%
  • Health Care
    7%
  • Consumer Staples
    6%
  • Energy
    5%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector-wise, the portfolio is heavily weighted towards technology and financial services, which may offer high growth potential but also expose the portfolio to sector-specific risks. The underrepresentation of traditionally defensive sectors like utilities and consumer defensive could make the portfolio more susceptible to market swings.

Regions Info

  • North America
    30%

Geographic exposure is concentrated in North America, with no direct allocation to Latin America, Europe, Asia, or Africa/Middle East. This concentration risks the portfolio's performance being overly dependent on the economic and political climate of a single region.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    27%
  • Mid-cap
    15%
  • Small-cap
    11%
  • Micro-cap
    8%

The market capitalization breakdown shows a diversified mix across mega, big, medium, small, and micro-cap stocks. This diversity within the stock component of the portfolio helps mitigate some risks associated with size-specific market movements.

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.

Click on the colored dots to explore allocations.

Considering the portfolio's current composition and its alignment with the Efficient Frontier could reveal opportunities to optimize the risk-return profile. Adjusting allocations among the existing assets might achieve a more favorable balance, although this would need to be balanced against the investor's growth objectives and risk tolerance.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 1.54%

The portfolio's dividend yield stands at 1.54%, contributing to its total returns. While not the primary focus of a growth-oriented strategy, dividends offer a source of income and potential reinvestment opportunities to compound growth.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.11%

The total expense ratio (TER) of 0.11% is impressively low, enhancing the portfolio's potential for long-term growth by minimizing the drag on performance caused by fees.

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