Growth-focused portfolio with strong emphasis on global stocks and minimal speculative positions

Report created on Aug 2, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards ETFs, with 75% in a Total Stock Market Index Fund and 24% in an International Stock Index Fund, indicating a broad market exposure strategy. The inclusion of a 1% position in Quantum Computing Inc, a speculative technology investment, suggests a willingness to explore high-growth potential sectors. This composition aligns with a growth-oriented risk profile, leveraging broad diversification across major stock markets to capture global equity returns while maintaining a small allocation for potentially high-reward investments.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 21.18%, which is impressive. However, the maximum drawdown of -44.47% indicates significant volatility and risk associated with high growth. The fact that 90% of returns came from just 15 days highlights the unpredictable nature of stock market investments and the importance of staying invested through market cycles to capture key growth days.

Projection Info

Monte Carlo simulations, which use historical data to predict a range of possible future outcomes, suggest a wide variance in potential returns for this portfolio. With a majority of simulations resulting in negative returns but a high annualized return across all simulations, this points to a high-risk, high-reward scenario. It's crucial to understand that such projections are speculative and depend heavily on past market behaviors, which may not always predict future movements accurately.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is almost entirely in stocks (99%), with a minimal cash position (1%). This asset mix supports the growth profile but comes with higher volatility and risk. Stocks, while offering the potential for high returns, can be susceptible to market fluctuations. A small cash reserve can provide liquidity but might not be sufficient to take advantage of new investment opportunities or cushion against market downturns.

Sectors Info

  • Technology
    27%
  • Financials
    16%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    3%
  • Utilities
    3%

Sector allocation is well-diversified across technology, financial services, industrials, consumer cyclicals, and healthcare, making up the bulk of the portfolio. This diversification helps mitigate sector-specific risks, but the heavy weighting in technology (27%) could expose the portfolio to higher volatility, especially in market conditions unfavorable to tech stocks. Balancing sector exposure can reduce risk while still capturing growth opportunities across the economy.

Regions Info

  • North America
    78%
  • Europe Developed
    10%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographical allocation shows a strong bias towards North America (78%), with modest exposure to developed Europe and emerging Asian markets. This concentration in North American equities, while benefiting from the stability and growth of developed markets, limits exposure to potential high-growth opportunities in emerging markets. Increasing diversification across geographies could reduce region-specific risks and enhance returns.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    30%
  • Mid-cap
    20%
  • Small-cap
    6%
  • Micro-cap
    2%

The market capitalization breakdown with a focus on mega (41%) and big cap (30%) stocks suggests a preference for established, large companies, which typically offer stability and consistent returns. However, the relatively smaller allocation to small (6%) and micro (2%) caps means potentially missing out on higher growth opportunities that smaller companies can offer. Adjusting this balance could enhance growth potential while maintaining a core of stability.

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 current portfolio's risk-return profile can be optimized. The Efficient Frontier analysis suggests that with the same level of risk, an expected return of 55.96% could be achieved by adjusting asset allocations. This optimization indicates that while the portfolio is performing well, there's room for improvement in balancing risk and return more effectively. Reevaluating asset allocation to align closer to the Efficient Frontier could enhance performance.

Dividends Info

  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.60%

The dividend yields from the ETFs contribute to the portfolio's total income, with the international stock index fund offering a higher yield (2.90%) compared to the total stock market index fund (1.20%). This income can provide a steady cash flow, which is beneficial in all market conditions, especially during downturns. Balancing growth and income-focused investments could further enhance the portfolio's performance.

Ongoing product costs Info

  • 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) 0.03%

The portfolio's total expense ratio (TER) is impressively low, at 0.03%, which is beneficial for long-term growth as lower costs translate directly into higher net returns. Keeping investment costs low is a crucial aspect of successful long-term investing, and this portfolio aligns well with that principle. Continuously monitoring and minimizing costs will remain important for maximizing returns.

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