A growth-focused portfolio with strong U.S. bias and sectoral concentration in technology

Report created on Mar 14, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is primarily composed of U.S. equities, with 60% allocated to the Vanguard S&P 500 ETF, and 10% to the Vanguard Information Technology Index Fund ETF. The remaining 30% includes international exposure through the Vanguard Total International Stock Index Fund ETF and a small cap value tilt with the Avantis U.S. Small Cap Value ETF. This allocation leans heavily towards large-cap U.S. stocks, aligning with a growth-focused strategy. While the structure supports stability through diversification, the U.S.-centric approach may limit exposure to emerging markets' growth potential.

Growth Info

The historical performance of the portfolio has been impressive, with a CAGR of 14.42%. This indicates a strong growth trajectory over time, surpassing typical benchmark returns. However, the portfolio also experienced a significant max drawdown of -34.77%, illustrating its vulnerability during market downturns. The fact that 90% of returns were generated on just 14 days highlights the portfolio's reliance on specific market movements. While historical performance provides insights, it's crucial to understand that past results do not guarantee future success.

Projection Info

The Monte Carlo simulation, which uses historical data to model potential future outcomes, projects an annualized return of 16.40%. With 964 out of 1,000 simulations yielding positive returns, the portfolio shows a promising outlook. The 5th percentile projection of 21.7% and the 67th percentile of 806.9% demonstrate a wide range of potential outcomes, reflecting inherent market uncertainties. While these projections offer valuable insights, it's important to remember they are based on historical data and market conditions can change.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is heavily weighted towards stocks, comprising 99% of the allocation, with a minimal 1% in cash. This focus on equities aligns with a growth strategy, but it also increases exposure to market volatility. Compared to a typical benchmark, this allocation is aggressive, potentially yielding higher returns but also posing greater risks. Diversification across asset classes, such as bonds or commodities, could reduce volatility and provide more stability during market downturns.

Sectors Info

  • Technology
    34%
  • Financials
    15%
  • Consumer Discretionary
    11%
  • Industrials
    9%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

The sectoral allocation is concentrated, with a significant 34% in technology. This focus can lead to higher returns in tech-driven bull markets, but also increases susceptibility to volatility during interest rate hikes or tech sector downturns. Other sectors like financial services and consumer cyclicals provide some balance, but the concentration in technology may limit diversification benefits. Broadening exposure across other sectors could enhance stability and reduce sector-specific risks.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

With 81% of the portfolio allocated to North America, the geographic exposure is heavily U.S.-centric. While this has been beneficial given the U.S. market's strong performance, it limits international diversification. The remaining 19% is spread across Europe, Asia, and other regions, providing some global exposure. Diversifying further into emerging markets could offer growth opportunities and mitigate potential risks associated with a heavily U.S.-focused portfolio.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    30%
  • Mid-cap
    16%
  • Small-cap
    7%
  • Micro-cap
    5%

The portfolio's market capitalization exposure is predominantly in mega and big-cap stocks, accounting for 72% of the allocation. This skew towards larger companies provides stability and liquidity, but may limit growth potential compared to smaller-cap stocks. The inclusion of small and micro-cap stocks, although minimal, adds some diversification and potential for higher returns. Balancing the market cap exposure could enhance growth prospects while managing risk.

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 portfolio shows potential for optimization along the Efficient Frontier, which represents the best possible risk-return ratio for a given set of assets. By adjusting the allocation among existing holdings, the portfolio could achieve a more favorable balance between risk and return. This optimization focuses on enhancing efficiency, not necessarily diversification. Regularly reviewing and rebalancing the portfolio can ensure it remains aligned with the investor's goals and market conditions.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.80%
  • Vanguard Information Technology Index Fund ETF Shares 0.70%
  • Vanguard S&P 500 ETF 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 3.20%
  • Weighted yield (per year) 1.67%

With a total yield of 1.67%, the portfolio offers moderate income through dividends. The Vanguard Total International Stock Index Fund ETF contributes the highest yield at 3.20%, enhancing the portfolio's income potential. Dividends provide a steady income stream and can cushion against market fluctuations. For growth-focused investors, reinvesting dividends can compound returns over time, while those seeking income may prefer higher-yielding assets to enhance cash flow.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.07%

The portfolio's total expense ratio (TER) is impressively low at 0.07%, supporting better long-term performance by minimizing costs. The Vanguard S&P 500 ETF, with a TER of 0.03%, exemplifies cost efficiency. Keeping expenses low is crucial for maximizing net returns, and this allocation aligns well with best practices in cost management. Maintaining this focus on low-cost investments will continue to benefit the portfolio's overall return potential.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey