A growth-oriented portfolio with a strong focus on US equities and technology sector

Report created on Aug 19, 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 predominantly invests in US equities, with a significant allocation towards technology and financial services sectors. The largest holdings are in broad market and large-cap growth ETFs, complemented by international exposure and a smaller allocation to US small-cap value stocks. This composition reflects a growth-oriented strategy with a higher risk tolerance, aiming for capital appreciation over income generation. The diversification across sectors and regions is commendable, though the heavy focus on the US market and technology sector could introduce specific risks related to market volatility and sector concentration.

Growth Info

The portfolio has demonstrated robust historical performance with a Compound Annual Growth Rate (CAGR) of 17.18%, though it experienced a maximum drawdown of -35.08%. This volatility is indicative of the growth-focused nature of the investments, which can lead to higher fluctuations in value. The days contributing most to returns highlight the portfolio's susceptibility to significant market movements. While past performance is impressive, investors should remain cautious, as these returns are not guaranteed to continue, especially in different market conditions.

Projection Info

Monte Carlo simulations suggest a wide range of potential outcomes, with a median projected growth significantly higher than the initial investment. This forward-looking projection, while optimistic, should be interpreted with caution. It's based on historical data, which may not accurately predict future market behavior. Diverse scenarios in the simulations underscore the uncertainty in financial markets, emphasizing the importance of maintaining a well-considered risk management strategy.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely composed of stocks, with a minimal cash holding for liquidity. This asset class allocation aligns with the portfolio’s growth profile but comes with higher risk compared to more balanced or conservative strategies. Stocks generally offer higher potential returns over the long term but can be subject to considerable short-term volatility. Investors should ensure this allocation aligns with their risk tolerance and investment horizon.

Sectors Info

  • Technology
    32%
  • Financials
    15%
  • Consumer Discretionary
    12%
  • Industrials
    10%
  • Telecommunications
    9%
  • Health Care
    8%
  • Consumer Staples
    4%
  • Energy
    4%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    2%

The sectoral allocation is heavily weighted towards technology, followed by financial services and consumer cyclicals. This concentration in technology, while potentially lucrative due to the sector's growth prospects, introduces sector-specific risk. Diversification across sectors can help mitigate this risk, and while this portfolio includes a range of sectors, the dominant weight in technology could amplify volatility. Balancing sector exposures may reduce risk without significantly compromising potential returns.

Regions Info

  • North America
    83%
  • Europe Developed
    7%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily skewed towards North America, with modest allocations to developed Europe, emerging Asia, and other regions. This concentration enhances exposure to the US economy's growth potential but limits global diversification. Expanding into underrepresented regions could offer additional diversification benefits, potentially smoothing out volatility and providing exposure to growth outside the US.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    24%
  • Mid-cap
    14%
  • Small-cap
    9%
  • Micro-cap
    7%

The market capitalization breakdown shows a preference for mega and big-cap stocks, which typically offer stability and lower volatility compared to smaller companies. However, the inclusion of small and micro-cap stocks, particularly through the Avantis® U.S. Small Cap Value ETF, introduces a higher-risk, higher-reward element to the portfolio. This balance supports growth objectives while mitigating some of the risks associated with smaller companies.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation between the Schwab U.S. Large-Cap Growth ETF and the Vanguard Total Stock Market Index Fund ETF Shares suggests redundancy in the portfolio, limiting diversification benefits. Reducing overlap between these holdings could enhance the portfolio's efficiency by reducing exposure to similar assets, thus potentially improving the risk-return profile without sacrificing the growth objective.

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 could enhance its risk-return profile. Currently, the high correlation between certain assets suggests room for improvement in diversification. By adjusting allocations to reduce overlap and potentially incorporating assets with lower correlations, the portfolio could achieve a more efficient balance, optimizing returns for the level of risk taken.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.27%

Dividend yields across the portfolio vary, contributing to its income generation alongside capital appreciation. The overall yield of 1.27% is modest, reflecting the growth focus of the portfolio rather than income. For investors seeking growth, reinvesting dividends can compound returns over time. However, those requiring income may need to adjust the allocation towards higher-yielding assets.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.06%

The portfolio benefits from low overall costs, with a Total Expense Ratio (TER) of 0.06%. This efficiency is crucial for long-term growth, as lower costs directly translate to higher net returns. The emphasis on low-cost ETFs is a strategic choice that aligns with best practices for maximizing investment returns over time.

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