A growth-focused portfolio with strong emphasis on US and emerging markets equities

Report created on Aug 8, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

Your portfolio is structured around three major ETFs, focusing heavily on equities across the S&P 500, total US stock market, and emerging markets. This composition shows a strategic emphasis on growth through a blend of established US companies and the dynamic potential of emerging markets. The 70% allocation to North American equities, combined with a 30% investment in emerging markets, suggests a deliberate approach to capturing both stability and high-growth opportunities. However, the concentration in stocks, without allocation to other asset classes like bonds or real estate, indicates a higher risk tolerance.

Growth Info

Historically, your portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.52%, with a significant maximum drawdown of -33.78%. This reflects the inherent volatility and risk associated with a stock-heavy portfolio, particularly one with substantial exposure to emerging markets. The days contributing most to returns highlight the portfolio's susceptibility to short-term market movements. Comparing this performance to benchmarks would help in understanding its relative strength, especially during different market conditions.

Projection Info

Monte Carlo simulations, which use historical data to forecast future performance, suggest a wide range of potential outcomes for your portfolio. With the majority of simulations indicating positive returns and an average annualized return of 12.91%, these projections underscore the growth potential of your investment strategy. However, it's crucial to remember that such simulations have limitations and cannot predict future market shifts or external economic factors.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks, without diversification into other asset classes, aligns with a growth-oriented strategy but increases exposure to market volatility. Diversifying across different asset classes can provide a buffer against stock market downturns, potentially smoothing out returns over time. Considering your growth profile, exploring opportunities in fixed income or real estate could offer benefits, particularly in mitigating risk.

Sectors Info

  • Technology
    30%
  • Financials
    17%
  • Consumer Discretionary
    11%
  • Telecommunications
    9%
  • Industrials
    8%
  • Health Care
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation within your portfolio is heavily weighted towards technology, financial services, and consumer cyclicals, reflecting a focus on sectors that can offer significant growth. However, this concentration also exposes the portfolio to sector-specific risks, such as regulatory changes or economic downturns affecting consumer spending. Balancing sector exposure by incorporating more defensive sectors like healthcare or utilities could offer stability.

Regions Info

  • North America
    70%
  • Asia Emerging
    15%
  • Asia Developed
    9%
  • Africa/Middle East
    3%
  • Latin America
    2%
  • Europe Emerging
    1%
  • Europe Developed
    1%

The geographic distribution of your investments, with a strong bias towards North America and emerging markets in Asia, showcases a pursuit of growth while leveraging the stability of the US economy. This strategy benefits from global diversification but is underexposed to developed markets in Europe and Australasia, which could provide additional stability and opportunities for growth.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    32%
  • Mid-cap
    17%
  • Small-cap
    3%
  • Micro-cap
    1%

The focus on mega and big-cap stocks suggests a preference for established companies with potentially lower volatility compared to smaller companies. However, this approach may limit exposure to high-growth opportunities in the mid to small-cap segments. Diversifying to include more medium, small, and micro-cap stocks could enhance growth prospects and portfolio diversification.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation between the Vanguard S&P 500 ETF and Vanguard Total Stock Market Index Fund ETF Shares indicates overlapping exposures, which may limit the diversification benefits within your portfolio. Reducing this overlap by reallocating funds could enhance portfolio efficiency without significantly altering the risk 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 current portfolio shows room for optimization, particularly by addressing the overlap between the S&P 500 and Total Stock Market ETFs. Adjusting the asset allocation to reduce correlation and increase diversification could improve the risk-return profile, potentially pushing the expected return to 14.60% without disproportionately increasing risk.

Dividends Info

  • iShares Core MSCI Emerging Markets ETF 3.00%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 1.74%

The portfolio's average dividend yield of 1.74% contributes to its total return, complementing capital gains with income. While the yield is modest, it reflects the growth orientation of the portfolio. Investors seeking higher income might consider reallocating a portion towards higher-yielding assets, though this may alter the risk-return profile.

Ongoing product costs Info

  • iShares Core MSCI Emerging Markets ETF 0.09%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.05%

With an overall expense ratio of 0.05%, your portfolio benefits from low costs, which can significantly enhance long-term returns. This efficient cost structure is commendable, as lower fees ensure more of your investment returns contribute to portfolio growth rather than being eroded by costs.

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