A growth-focused portfolio with a strong tilt towards US stocks and technology sector

Report created on Jul 21, 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 predominantly invested in ETFs, with a heavy emphasis on the Vanguard Total World Stock Index Fund ETF Shares, making up 60% of the portfolio. This broad exposure is complemented by targeted investments in U.S. large-cap growth, U.S. small-cap value, and mid-cap value ETFs. Such a composition suggests a strategic approach to capturing growth across different market segments, while the singular focus on ETFs indicates a preference for diversified, cost-effective investment vehicles. The blend of growth and value strategies across different market capitalizations aims to balance potential returns with risk mitigation.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 15.29%, with a maximum drawdown of -35.71%. These figures underscore the portfolio's growth orientation but also highlight its volatility during market downturns. The fact that 90% of returns came from just 16 days suggests that timing the market plays a significant role in the portfolio's performance. While past success is notable, it's important to remember that historical performance is not a reliable indicator of future results, especially in a growth-focused portfolio where market conditions can significantly impact short-term outcomes.

Projection Info

The Monte Carlo simulation, a tool used to project potential portfolio outcomes based on historical data, suggests a wide range of future scenarios for this portfolio. With key percentiles indicating anywhere from a 46.8% to an 874.1% return, the simulation highlights the portfolio's high growth potential but also its substantial risk. The high number of simulations with positive returns (983 out of 1,000) is encouraging, yet investors should approach these projections with caution, understanding that they are based on past data which may not accurately predict future market conditions.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's allocation is heavily skewed towards stocks (99%), with a minimal cash holding (1%). This allocation aligns with the portfolio's growth profile but comes with higher volatility and risk compared to more diversified or conservative allocations. Stocks, while offering the potential for high returns, can be significantly affected by market fluctuations. A small cash reserve offers limited liquidity and may not be sufficient to take advantage of market dips or to cover emergency withdrawals without impacting invested assets.

Sectors Info

  • Technology
    26%
  • Financials
    17%
  • Consumer Discretionary
    11%
  • Industrials
    11%
  • Health Care
    8%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    4%
  • Utilities
    3%
  • Real Estate
    3%

The sectoral allocation leans heavily towards technology, financial services, and consumer cyclicals, which are sectors often associated with higher growth but also higher volatility. This concentration in high-growth sectors can enhance returns during bullish market phases but may expose the portfolio to significant downturns during market corrections or bear markets. Diversifying across more sectors, including those with defensive characteristics, could help mitigate some of this risk.

Regions Info

  • North America
    79%
  • Europe Developed
    9%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

With 79% of assets allocated to North America, the portfolio demonstrates a strong home bias, which may limit exposure to potential growth in international markets. While this concentration may have benefited from strong U.S. market performance in recent years, it also increases vulnerability to region-specific economic downturns. Expanding geographic diversification, particularly towards emerging markets, could offer additional growth opportunities and risk mitigation.

Market capitalization Info

  • Mega-cap
    38%
  • Mid-cap
    23%
  • Large-cap
    23%
  • Small-cap
    8%
  • Micro-cap
    6%

The market capitalization breakdown shows a balanced approach between mega, big, and medium-cap stocks, with smaller allocations to small and micro-caps. This distribution suggests a strategy that leans towards more established, less volatile companies, while still seeking growth opportunities in smaller, potentially higher-growth firms. However, the limited exposure to small and micro-cap stocks may reduce the portfolio's overall growth potential, given these segments' higher risk but also higher reward profile.

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 portfolio's current allocation suggests there may be room for optimization towards achieving the best possible risk-return ratio, as indicated by the Efficient Frontier concept. While the portfolio demonstrates a strong growth orientation, rebalancing towards a more diversified mix could potentially offer a better balance of risk and return. This might involve adjusting allocations across different asset classes, sectors, or geographies to reduce volatility without significantly compromising growth potential.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Mid-Cap Value Index Fund ETF Shares 2.20%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 1.49%

The portfolio's dividend yield stands at 1.49%, which is relatively modest. This yield reflects the growth orientation of the portfolio, where the emphasis is on capital appreciation rather than income generation. For investors prioritizing growth, reinvesting these dividends could compound future returns. However, those seeking regular income may find this yield insufficient and might consider adjusting their 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 Mid-Cap Value Index Fund ETF Shares 0.07%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.08%

With a total expense ratio (TER) of 0.08%, the portfolio benefits from low costs, which is crucial for long-term growth. Lower costs mean more of the investment's return is retained, compounding over time. This efficient cost structure is a strong aspect of the portfolio, supporting better net performance relative to more expensive options. Continuously monitoring and minimizing investment costs remains a key strategy for enhancing returns.

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