A growth-focused portfolio with strong US equity presence and moderate global diversification

Report created on Jul 9, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio showcases a significant commitment to the US equity market, with a 70% allocation across various ETFs that cover large-cap, dividend-paying, and technology sectors, alongside a smaller but strategic emphasis on small to mid-cap stocks. The inclusion of a 10% stake in international stocks provides some global exposure, albeit with a heavy tilt towards developed markets. The singular focus on stocks, with a minor cash position, indicates a growth-oriented strategy, but it raises questions about diversification across asset classes.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 16.63% and a maximum drawdown of -34.26%, the portfolio demonstrates strong historical performance with significant volatility. The days contributing most to returns highlight the impact of short-term gains, which may not be sustainable long-term. Comparing these figures to benchmarks would help assess relative performance, but the high CAGR suggests the portfolio has capitalized well on the growth trends in the US market.

Projection Info

Monte Carlo simulations project a wide range of outcomes, emphasizing the uncertainty inherent in relying solely on historical data for future performance predictions. While a median projected increase of 592.5% is impressive, the broad spread from the 5th to 67th percentiles underscores the risk involved. These projections, while useful for understanding potential volatility, should be viewed as one of many tools in assessing future expectations.

Asset classes Info

  • Stocks
    100%
  • Cash
    1%

The portfolio's allocation is heavily weighted towards stocks, with a nominal cash position, reflecting a high-risk, high-reward strategy typical of growth-focused investors. This concentration in a single asset class can amplify returns during market rallies but also increases the portfolio's susceptibility to market downturns. Diversifying across different asset classes, such as bonds or real estate, could provide a buffer against stock market volatility.

Sectors Info

  • Technology
    33%
  • Financials
    12%
  • Consumer Discretionary
    10%
  • Industrials
    10%
  • Health Care
    9%
  • Consumer Staples
    7%
  • Telecommunications
    7%
  • Energy
    6%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    1%

Technology's dominant 33% weighting aligns with the portfolio's growth orientation but also introduces sector-specific risks, such as regulatory changes or market sentiment shifts. Financial Services and Consumer Cyclicals complement the growth theme but further concentrate risk. A more balanced sector allocation could mitigate sector-specific risks while still capturing growth opportunities.

Regions Info

  • North America
    88%
  • Europe Developed
    5%
  • Asia Developed
    2%
  • Asia Emerging
    2%
  • Japan
    2%

The 88% allocation to North America, primarily the US, captures the robust growth of the American market but underrepresents emerging markets and other developed regions. This geographic concentration may limit exposure to global growth opportunities and increase vulnerability to US-centric economic downturns. Incremental diversification into underrepresented regions could enhance the portfolio's resilience and growth potential.

Market capitalization Info

  • Mega-cap
    31%
  • Large-cap
    31%
  • Mid-cap
    17%
  • Small-cap
    13%
  • Micro-cap
    7%

The balanced exposure across mega, big, and medium market caps, with a smaller focus on small and micro-caps, suggests a strategy that leans towards established companies while still seeking growth opportunities in smaller firms. This market cap distribution supports a growth strategy but could benefit from a slightly increased allocation to small and micro-caps for higher growth potential, albeit with increased risk.

Redundant positions Info

  • Fidelity Small-Mid Factor
    SPDR® Portfolio S&P 600 Small Cap ETF
    High correlation
  • Schwab U.S. Large-Cap Growth ETF
    SPDR® Portfolio S&P 500 ETF
    High correlation

The high correlation between certain ETFs, especially within the US equity space, indicates redundancy that may not be contributing to diversification. Identifying and reducing overlapping holdings can streamline the portfolio, potentially reducing risk without sacrificing expected returns. This adjustment would refine the portfolio's focus and efficiency.

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.

Optimizing the portfolio along the Efficient Frontier involves reducing redundancies and possibly reallocating towards underrepresented sectors or geographies. This process aims to achieve the best possible risk-return ratio, considering the current assets. By addressing the highlighted correlations and diversification issues, the portfolio could move closer to an optimal balance of risk and return.

Dividends Info

  • Fidelity Small-Mid Factor 1.30%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • VanEck Semiconductor ETF 0.40%
  • SPDR® Portfolio S&P 500 ETF 1.20%
  • SPDR® Portfolio S&P 600 Small Cap ETF 1.90%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.72%

The portfolio's average dividend yield of 1.72% contributes to total returns, with a notable 3.80% yield from the dividend-focused ETF. While dividends are not the primary focus of a growth-oriented strategy, they offer a source of income and potential reinvestment funds. Balancing high-growth investments with dividend-paying assets could provide a more holistic approach to growth and income.

Ongoing product costs Info

  • Fidelity Small-Mid Factor 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • VanEck Semiconductor ETF 0.35%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • SPDR® Portfolio S&P 600 Small Cap ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.08%

With a total expense ratio (TER) of 0.08%, the portfolio benefits from low costs, which can significantly impact long-term growth. The focus on low-cost ETFs is commendable, as it allows more of the investment's returns to compound over time. Maintaining this emphasis on cost-efficiency is key to maximizing net returns.

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