Growth-oriented portfolio with a strong tech and biotech emphasis and global exposure

Report created on Jun 10, 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 characterized by a significant allocation to the Vanguard S&P 500 ETF at 50%, showing a foundational investment in large-cap U.S. equities. The Vanguard Information Technology Index Fund ETF Shares, comprising 25%, indicate a heavy tilt towards the technology sector. The inclusion of the Vanguard Total International Stock Index Fund ETF Shares at 15% and the SPDR® S&P Biotech ETF at 10% introduces international diversification and a sector-specific bet on biotech, respectively. This composition suggests a growth-focused approach, leaning heavily on tech and healthcare sectors, with a broad geographic spread that includes a strong bias towards North American equities.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 14.20%, the portfolio has historically outperformed many standard benchmarks, reflecting the strong performance of the technology sector in recent years. The maximum drawdown of -32.92% highlights periods of significant volatility, likely due to the high concentration in sectors that can be sensitive to market swings. The days contributing to 90% of returns being concentrated in just 30 days demonstrates the portfolio's performance is driven by strong, albeit infrequent, market movements, underscoring the importance of staying invested through market cycles for growth-oriented investors.

Projection Info

Monte Carlo simulations, with 1,000 iterations, suggest a wide range of potential outcomes, with a median projected growth of 286.7%. The positive return in 943 out of 1,000 simulations aligns with the portfolio's growth orientation but also indicates not insignificant risk. The 5th percentile outcome of -6.7% underscores the potential for loss, albeit relatively modest in the context of the simulations' spread. These projections, while useful for understanding potential variability, are based on historical data and cannot guarantee future performance.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is almost entirely in stocks (99%), with a minimal cash holding (1%). This allocation supports the portfolio's growth objectives but also increases its risk profile, given the higher volatility associated with equities compared to other asset classes like bonds or real estate. The lack of diversification across asset classes means the portfolio's performance is closely tied to stock market movements, making it more susceptible to market downturns.

Sectors Info

  • Technology
    43%
  • Health Care
    17%
  • Financials
    10%
  • Consumer Discretionary
    7%
  • Industrials
    6%
  • Telecommunications
    6%
  • Consumer Staples
    4%
  • Energy
    2%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation is heavily weighted towards technology (43%) and healthcare, primarily through biotech (17%), reflecting a clear growth strategy. Financial services, consumer cyclicals, and industrials follow, providing some diversification. However, the heavy emphasis on technology and healthcare sectors increases the portfolio's sensitivity to regulatory changes, technological advancements, and market sentiment shifts within these industries. While these sectors have historically offered high growth potential, they also come with increased volatility.

Regions Info

  • North America
    85%
  • Europe Developed
    6%
  • Asia Emerging
    3%
  • Japan
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

The geographic distribution is predominantly North American (85%), with modest exposure to developed Europe (6%) and emerging Asian markets (3%). This allocation benefits from the robust performance of the U.S. market but may be missing out on potential growth opportunities in emerging markets and other developed regions. The limited exposure to areas like Latin America and emerging Europe suggests an opportunity to further diversify and potentially capture growth in these less represented regions.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    29%
  • Mid-cap
    17%
  • Small-cap
    7%
  • Micro-cap
    3%

The market capitalization breakdown shows a preference for larger companies, with mega (43%) and big (29%) caps dominating the portfolio. This bias towards larger firms is consistent with the portfolio's growth orientation, as these companies often have more established business models and global reach. However, the relatively smaller allocation to medium, small, and micro caps may limit exposure to high-growth potential firms outside of the large-cap space, which could offer additional diversification and return opportunities.

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 could help in assessing whether the portfolio's current risk-return profile is optimized. Given the portfolio's heavy tilt towards growth assets, there might be room to improve the risk-return ratio through better diversification across asset classes and sectors. However, it's important to note that optimization is based on historical data, which may not always predict future performance accurately. Balancing the portfolio to align more closely with the Efficient Frontier could potentially enhance returns for the same level of risk.

Dividends Info

  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 ETF 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • SPDR® S&P Biotech ETF 0.20%
  • Weighted yield (per year) 1.23%

The portfolio's average dividend yield of 1.23% contributes to its total returns but is not the primary focus of this growth-oriented strategy. The varying yields, from 0.20% in the SPDR® S&P Biotech ETF to 2.90% in the Vanguard Total International Stock Index Fund ETF Shares, reflect the differing income-generating capabilities across sectors and regions. For investors seeking growth, these dividends can be reinvested to compound growth, though the overall yield is modest in the context of the portfolio's objectives.

Ongoing product costs Info

  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • SPDR® S&P Biotech ETF 0.35%
  • Weighted costs total (per year) 0.08%

The portfolio benefits from relatively low total expense ratios (TERs), averaging 0.08%, which is favorable for long-term growth as lower costs translate directly into higher net returns. The Vanguard ETFs, known for their low-cost structure, help in minimizing the drag on performance that higher fees can cause. Keeping costs low is particularly important in growth strategies, where compounding plays a critical role in wealth accumulation.

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