Growth-focused portfolio with a strong tech inclination and moderate international exposure

Report created on Aug 1, 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 is characterized by a heavy emphasis on the stock market, with 70% allocated to a broad stock market ETF, 20% to a technology-focused ETF, and the remaining 10% to an international stock ETF. This composition suggests a growth-oriented strategy, leveraging the potential high returns of the technology sector and the diversification benefits of a broad market and international exposure. The portfolio's structure is moderately diversified, leaning significantly towards equities, which aligns with a growth profile but carries a higher risk level.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 15.14%, with a maximum drawdown of -33.99%. These figures indicate a strong performance, with the high growth rate reflecting the portfolio's aggressive stance, particularly in technology. However, the substantial drawdown highlights the risk associated with a high concentration in volatile sectors. The days contributing to 90% of returns being limited to 33 suggests that while the portfolio has periods of significant gains, it's subject to sharp fluctuations, underscoring the importance of a long-term perspective.

Projection Info

Monte Carlo simulations, which use historical data to project future performance under various scenarios, show a wide range of outcomes for this portfolio. With 990 out of 1,000 simulations yielding positive returns, the median projected growth is substantial. However, the wide spread between the 5th and 67th percentiles underscores the uncertainty and risk inherent in this growth-focused strategy. Investors should consider these projections as one of many tools, keeping in mind that past performance is not indicative of future results.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's assets are almost entirely in stocks (99%), with a minimal cash holding (1%). This heavy equity weighting is typical for growth-oriented portfolios seeking higher returns, albeit at increased volatility. The lack of diversification into bonds or alternative asset classes means the portfolio may be more susceptible to market downturns but poised for significant growth during bullish market phases.

Sectors Info

  • Technology
    43%
  • Financials
    12%
  • Consumer Discretionary
    9%
  • Industrials
    8%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Real Estate
    2%
  • Basic Materials
    2%
  • Utilities
    2%

With 43% of the portfolio in technology, there's a clear sectoral concentration. While technology stocks have historically provided high returns, this concentration increases the portfolio's volatility and risk, particularly in response to industry-specific downturns. The remaining sectors, including financial services and consumer cyclicals, offer some diversification, but the overall balance is heavily skewed towards tech.

Regions Info

  • North America
    90%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%

The geographic allocation is predominantly North American (90%), with modest exposure to developed Europe (4%) and emerging Asian markets (2%). This heavy domestic bias could limit global diversification benefits and expose the portfolio to regional economic and political risks. Increasing international exposure, especially to emerging markets, could offer additional growth opportunities and risk mitigation through geographic diversification.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    30%
  • Mid-cap
    18%
  • Small-cap
    6%
  • Micro-cap
    2%

The portfolio's market capitalization breakdown—43% mega, 30% big, 18% medium, 6% small, and 2% micro—indicates a tilt towards larger companies, which are typically less volatile than smaller counterparts. However, the presence of small and micro-cap stocks adds potential for high growth, albeit with increased risk. This balance supports the portfolio's growth objectives while providing some level 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.

Considering the portfolio's current allocation and risk-return profile, there's room for optimization towards the Efficient Frontier, which represents the most efficient combination of assets for the best possible risk-return ratio. Adjusting the asset allocation to include a wider range of asset classes or rebalancing sector and geographic exposures could enhance diversification and potentially improve the risk-adjusted return profile.

Dividends Info

  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.23%

The dividend yields, ranging from 0.50% in the technology ETF to 2.90% in the international stock ETF, contribute to the portfolio's total yield of 1.23%. While dividends are not the primary focus of this growth-oriented portfolio, they provide a stream of income that can enhance total returns, especially during market volatility or downturns.

Ongoing product costs Info

  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • 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) 0.05%

The portfolio's total expense ratio (TER) is impressively low at 0.05%, which is beneficial for long-term growth as lower costs translate directly into higher net returns. This cost efficiency is a strong point, particularly in a growth-focused strategy where the compounding effect of costs can significantly impact long-term performance.

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