Growth-oriented portfolio with high US market exposure and low costs

Report created on Oct 18, 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 heavily weighted towards the US market, with a significant allocation in the Vanguard 500 Index Fund Admiral Shares, making up nearly 79% of the portfolio. The inclusion of the Vanguard Total International Stock Index Fund Admiral Shares and the Vanguard FTSE Social Index Fund Admiral Shares adds a touch of international exposure and ESG considerations, respectively. The Vanguard Target Retirement 2045 Fund Investor Shares introduces a time-targeted approach to retirement planning. The heavy reliance on a single asset class (stocks) with minimal bond and cash holdings indicates a strong growth orientation but comes with higher volatility.

Growth Info

Historically, this portfolio has shown impressive growth, with a Compound Annual Growth Rate (CAGR) of 16.26%. The maximum drawdown of -33.68% signals significant volatility, which is typical for stock-heavy portfolios. The fact that 90% of returns came from just 22 days highlights the unpredictable nature of stock investments, where a few good days can significantly impact overall performance. This underscores the importance of staying invested through market ups and downs to capture these critical periods.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of possible future outcomes, suggest a wide range of potential portfolio values. With 997 out of 1,000 simulations showing positive returns, the median outcome is a 523.4% increase, indicating strong growth potential. However, the wide spread between the 5th and 67th percentiles (from 103.4% to 771.2%) underscores the inherent uncertainty in such projections, reminding investors of the risk involved.

Asset classes Info

  • Stocks
    99%
  • Bonds
    1%
  • Cash
    1%

The portfolio's asset allocation is overwhelmingly in stocks (99%), with a nominal presence in bonds and cash. This allocation aligns with the portfolio's growth profile but exposes it to higher market volatility. The lack of significant investment in bonds or other asset classes limits opportunities for risk mitigation through diversification. Adjusting the asset mix could help manage risk, especially during market downturns.

Sectors Info

  • Technology
    31%
  • Financials
    15%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Telecommunications
    9%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    2%

With a heavy emphasis on technology and financial services, the portfolio is positioned to benefit from growth in these sectors. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or economic shifts affecting these industries. Diversifying across a broader range of sectors could reduce volatility and improve long-term stability.

Regions Info

  • North America
    89%
  • Europe Developed
    5%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%
  • Australasia
    1%

The geographic allocation is predominantly in North America (89%), with minimal exposure to developed Europe, Asia, and other regions. This concentration in the US market can offer significant growth opportunities but also increases the portfolio's vulnerability to regional economic fluctuations. Expanding international exposure could offer better risk-adjusted returns by tapping into growth in emerging and developed markets outside the US.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    34%
  • Mid-cap
    17%
  • Small-cap
    1%

The portfolio's emphasis on mega and big-cap stocks (80% combined) suggests a focus on stability and growth potential of large, established companies. While this can offer resilience during market volatilities, the underrepresentation of small and micro-cap stocks limits exposure to potentially higher-growth opportunities. Increasing diversification across different market capitalizations could enhance returns and mitigate risk.

Redundant positions Info

  • VANGUARD 500 INDEX FUND ADMIRAL SHARES
    Vanguard Target Retirement 2045 Fund Investor Shares
    Vanguard FTSE Social Index Fund Admiral
    High correlation

The high correlation among the Vanguard 500 Index Fund Admiral Shares, Vanguard Target Retirement 2045 Fund Investor Shares, and Vanguard FTSE Social Index Fund Admiral indicates overlapping investments, reducing the diversification benefits. Identifying and reducing such overlaps can help in achieving a more efficient portfolio diversification, potentially lowering risk without sacrificing returns.

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 among certain holdings suggests room for improvement in diversification. By reallocating assets to reduce overlap and potentially incorporating different asset classes or sectors, the portfolio could achieve a more favorable balance between risk and return.

Dividends Info

  • VANGUARD 500 INDEX FUND ADMIRAL SHARES 1.10%
  • Vanguard FTSE Social Index Fund Admiral 0.70%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 2.10%
  • Vanguard Target Retirement 2045 Fund Investor Shares 2.00%
  • Weighted yield (per year) 1.20%

The portfolio's average dividend yield of 1.20% contributes to its total return, providing a steady income stream in addition to potential capital gains. While the focus is clearly on growth, dividends can offer a cushion during market downturns. For investors seeking higher income, reallocating towards assets with higher dividend yields could be beneficial.

Ongoing product costs Info

  • VANGUARD 500 INDEX FUND ADMIRAL SHARES 0.04%
  • Vanguard FTSE Social Index Fund Admiral 0.13%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 0.09%
  • Vanguard Target Retirement 2045 Fund Investor Shares 0.08%
  • Weighted costs total (per year) 0.05%

The portfolio benefits from exceptionally low costs, with a Total Expense Ratio (TER) of only 0.05%. This efficiency is crucial for long-term growth, as lower costs directly translate to higher net returns. The choice of low-cost funds is commendable and should be maintained to maximize investment growth over time.

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