A growth-oriented portfolio with a strong emphasis on US equities and Vanguard ETFs

Report created on Aug 5, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards US equities, comprising 66% in Vanguard's S&P 500 and Total Stock Market ETFs, with an additional 20% in international stocks and 14% in the extended market. This structure indicates a growth-focused strategy, leveraging broad market exposure. The high allocation to US-based assets aligns with the portfolio's growth classification but may limit global diversification benefits.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 12.56% and a maximum drawdown of -35.25%, the portfolio has demonstrated strong growth with significant volatility. The days contributing to 90% of returns being limited to 27 indicates that performance peaks were concentrated in brief periods, highlighting the importance of staying invested during volatile markets for capturing gains.

Projection Info

The Monte Carlo simulation, projecting a median growth of 324.3% across 1,000 scenarios, suggests a strong potential for future gains. However, the significant spread between the 5th and 67th percentiles underscores the uncertainty in these projections. It's crucial to understand that while simulations provide a range of outcomes based on historical data, they cannot guarantee future results.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is nearly entirely in stocks (99%), with a minimal cash reserve (1%). This allocation is typical for growth-oriented investors seeking higher returns, though it comes with increased market risk. Diversifying across different asset classes, such as bonds or real estate, could provide a buffer during stock market downturns.

Sectors Info

  • Technology
    27%
  • Financials
    16%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    3%
  • Utilities
    2%

The sector allocation shows a heavy emphasis on technology (27%) and financial services (16%), reflecting common trends in growth portfolios. However, this concentration increases susceptibility to sector-specific risks. A more balanced sector distribution could mitigate these risks while still allowing for significant growth opportunities.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

The geographic allocation is predominantly in North America (81%), with modest exposure to developed Europe (8%) and emerging Asian markets (3%). This US-centric approach has historically provided strong returns but may miss out on growth opportunities in emerging markets and other developed regions, suggesting room for increased international diversification.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    28%
  • Mid-cap
    20%
  • Small-cap
    9%
  • Micro-cap
    3%

The market capitalization breakdown reveals a preference for larger companies (Mega 38%, Big 28%), which are typically more stable but may offer lower growth potential than smaller companies. Including more medium, small, or micro-cap stocks could enhance growth prospects but would also increase volatility.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation between the Vanguard S&P 500 ETF and the Total Stock Market Index Fund ETF Shares indicates redundant exposure, diminishing the diversification benefits of holding both. Reducing overlap by reallocating assets could enhance the portfolio's efficiency without significantly increasing risk.

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.

The Efficient Frontier analysis suggests that the portfolio could achieve a better risk-return ratio by addressing the high correlation between certain assets. Optimizing the asset allocation to reduce overlap and improve diversification could enhance returns for the given level of risk, aligning more closely with the principles of modern portfolio theory.

Dividends Info

  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Extended Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.51%

The portfolio's dividend yield stands at 1.51%, with the highest yield coming from the Total International Stock Index Fund ETF Shares (2.80%). While dividends contribute to total returns, the focus on growth equities naturally results in a moderate yield. Investors prioritizing income might consider adjusting their allocation towards higher-yielding assets.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Extended Market Index Fund ETF Shares 0.06%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

The portfolio's overall expense ratio is impressively low at 0.04%, which is beneficial for long-term growth as lower costs translate directly into higher net returns. This cost efficiency is a strong aspect of the portfolio, reflecting well-chosen investments that minimize unnecessary expenses.

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