A broadly diversified growth tilted portfolio with strong US bias and impressively low ongoing costs

Report created on Aug 2, 2024

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is built almost entirely from broad index ETFs, with roughly 94% in stocks and 5% in bonds, plus a tiny cash slice. The core is spread over several very similar US and global equity funds, with extra growth and dividend tilts layered on top. For a “balanced” risk label, this setup leans clearly toward growth, which helps long‑term returns but can feel bumpy in rough markets. This structure is generally sound and aligns with many global benchmarks, but it’s more complex than it needs to be. Simplifying overlapping funds while keeping the same overall stock‑bond split could make it easier to manage and still keep the strengths.

Growth Info

Using a simple example, if someone had put $10,000 into this mix at the start of the backtest, a 13.92% Compound Annual Growth Rate (CAGR) would have grown it to around $37,000 over 10 years. CAGR is just the “average yearly speed” of growth over time. That’s a very strong return and suggests the growth tilt has paid off historically. The max drawdown of about ‑26% means the portfolio once dropped roughly a quarter from a peak, which is noticeably smoother than pure aggressive equity setups. It’s important to remember that these numbers describe the past; they’re useful context, but future markets can behave very differently.

Projection Info

The Monte Carlo analysis runs 1,000 simulated futures by scrambling and re‑using historical patterns, giving a range of possible outcomes instead of a single guess. In this case, the median simulation ending at about 427% means $10,000 could hypothetically become $52,000 over the chosen period, while the 5th percentile at 63% suggests some paths barely grow. An average simulated return near 14% is consistent with past data, which is encouraging but not a promise. Monte Carlo is like a weather forecast: it shows possible storms and sunshine based on history, but real life can bring new surprises, so using it as a guide rather than a guarantee is key.

Asset classes Info

  • Stocks
    94%
  • Bonds
    5%
  • Cash
    1%

Asset‑class wise, this is essentially an equity portfolio with a small bond cushion: 94% stock, 5% bond, 1% cash. That equity tilt is great for long‑term compounding and matches a lot of growth‑oriented benchmarks, but it also means results will be driven mainly by stock market swings. The 5% bond slice offers some ballast, yet it won’t dramatically soften large equity downturns. This allocation is well‑balanced for someone prioritizing growth over stability and aligns closely with global standards for return‑focused investors. Anyone wanting smoother ride quality might consider gradually boosting high‑quality bond exposure, while those fully comfortable with volatility could simply maintain this equity‑heavy stance.

Sectors Info

  • Technology
    32%
  • Financials
    12%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Health Care
    8%
  • Industrials
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

Sector exposure is nicely spread across the economy, with technology at 32% and then meaningful amounts in financials, consumer cyclicals, communication services, healthcare, and industrials. Tech being the largest slice is very normal today and broadly matches many common benchmarks, but it does mean this portfolio is more sensitive to interest‑rate changes and shifts in innovation‑driven earnings. This portfolio’s sector composition matches benchmark data, which is a strong indicator of diversification and healthy balance. To keep risk in check, it’s worth occasionally checking whether the tech weight keeps creeping higher over time and, if so, considering a small shift toward more defensive or income‑oriented areas.

Regions Info

  • North America
    79%
  • Europe Developed
    7%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is heavily tilted toward North America at 79%, with modest allocations to developed Europe, Japan, and Asia, and only tiny slices in emerging regions and other areas. This US‑heavy stance has been a tailwind for more than a decade, since US stocks outperformed many peers. It also matches many popular global benchmarks that lean strongly toward the US. The trade‑off is that results are heavily tied to one economy and currency. Keeping a healthy international allocation can reduce “home country” risk by spreading bets across different political and economic systems, so holding or even gently increasing non‑US exposure can support long‑term resilience without changing the overall growth focus.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    31%
  • Mid-cap
    16%
  • Small-cap
    3%
  • Micro-cap
    1%

Market‑cap exposure is dominated by mega and big companies, with about 73% in large caps, 16% in mid caps, and only small amounts in small and micro caps. Large caps tend to be more stable and less prone to extreme swings than smaller companies, which fits nicely with a balanced risk profile. This allocation is well‑balanced and aligns closely with global standards, giving broad exposure to the market’s main growth engines. The modest small‑ and mid‑cap exposure adds some extra growth potential without taking over the risk profile. If someone wanted a stronger “size premium” tilt, they could raise smaller‑company exposure slightly, but it isn’t necessary for a solid diversified core.

Redundant positions Info

  • Vanguard Growth Index Fund ETF Shares
    Vanguard Total Stock Market Index Fund ETF Shares
    Vanguard Total World Stock Index Fund ETF Shares
    Vanguard S&P 500 ETF
    Schwab U.S. Large-Cap Growth ETF
    Invesco NASDAQ 100 ETF
    High correlation

A big thing under the hood is that many of the equity ETFs here are highly correlated, meaning they tend to move almost in lockstep. Funds like the S&P 500, total US market, global stock index, growth indexes, and the NASDAQ‑focused ETF all hold overlapping giants and react similarly to big market news. Correlation is just how much two things move together; high correlation reduces the diversification benefit of holding many funds. The core exposure is already excellent, but having several near‑clones adds complexity without much extra risk reduction. Trimming down to fewer overlapping broad ETFs could keep the same risk‑return profile while making the portfolio simpler and easier to monitor.

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.

On a risk‑return chart known as the Efficient Frontier, this portfolio already sits in a healthy, growth‑tilted zone that matches its historical performance and risk score. The Efficient Frontier is the curve of “best possible” combinations of risk and return using only the current ingredients; it doesn’t say what you should want, just what’s mathematically most effective. Because many equity funds here are highly correlated, shifting weights among them may not change risk‑return much, but removing duplicative holdings can clarify which levers actually matter. From there, small tweaks to the stock‑bond mix or the growth vs broader equity split could move the portfolio closer to the most efficient point for the same overall risk.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.52%

The portfolio’s overall yield of about 1.52% is modest, which is normal for a growth‑oriented equity mix in today’s environment. Yield is just the annual cash you receive as a percentage of your investment, mainly from dividends and bond interest. The dedicated dividend ETF and the bond fund lift the income slightly, while the growth‑heavy ETFs naturally pay less. For someone focused on long‑term growth, this lower yield is fine because most of the return is expected from price appreciation. If future goals include funding living expenses from the portfolio, gradually increasing the share of dividend and bond exposure over time could help create a more reliable income stream.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.05%

The total expense ratio around 0.05% is impressively low, especially given the number of different ETFs. TER (Total Expense Ratio) is like a small annual membership fee the funds charge; keeping it low leaves more money compounding for you each year. This cost level is far below many actively managed options and strongly supports better long‑term performance. The one relatively higher‑fee fund is still modest by industry standards. Since the biggest drag on returns you can control is cost, consolidating overlapping funds into fewer broad, ultra‑low‑cost choices could potentially nudge the total TER even lower while keeping the same overall exposure and risk level.

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