A growth-oriented portfolio with a strong focus on US and global equities
Report created on Aug 7, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 80.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00%
This portfolio is highly concentrated in two ETFs, with an 80% allocation to the Vanguard Total Stock Market Index Fund ETF Shares and a 20% allocation to the Vanguard Total International Stock Index Fund ETF Shares. This composition indicates a strong tilt towards equities, specifically with a heavy emphasis on the US market. Given the broad diversification across sectors and geographies within these ETFs, the portfolio aims to capture the growth potential of the global stock market while maintaining a significant bias towards North American equities.
Growth
With a historical Compound Annual Growth Rate (CAGR) of 12.75% and a maximum drawdown of -34.74%, the portfolio has demonstrated resilience and an ability to recover from market downturns. The days contributing to 90% of returns highlight the impact of significant market movements on overall performance. Comparing this to benchmark indices can provide context, but it's clear the portfolio has been positioned to capitalize on growth opportunities, albeit with periods of volatility.
Projection
Monte Carlo simulations, which use historical data to project future outcomes, show a wide range of potential performances for this portfolio. With 977 out of 1,000 simulations resulting in positive returns and a median projected increase of 268.4%, the forward-looking outlook appears robust. However, it's important to note these projections are based on past market behavior, and future conditions may differ.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's asset allocation is almost entirely in stocks (99%), with a minimal cash reserve (1%). This allocation is consistent with its growth profile but comes with higher volatility and risk. The lack of bonds or alternative investments could be a concern for risk management, especially in market downturns where diversification across asset classes can provide a buffer.
Sectors
- Technology 27%
- Financials 16%
- Consumer Discretionary 11%
- Industrials 10%
- Health Care 10%
- Telecommunications 8%
- Consumer Staples 6%
- Energy 3%
- Basic Materials 3%
- Real Estate 3%
- Utilities 3%
Sector allocation is heavily weighted towards technology, financial services, and consumer cyclicals, which are sectors often associated with higher growth but also higher volatility. This sector composition is typical for growth-focused portfolios aiming for higher returns. The balance across other sectors like healthcare and industrials provides some diversification benefits.
Regions
- North America 81%
- Europe Developed 8%
- Asia Emerging 3%
- Japan 3%
- Asia Developed 2%
- Australasia 1%
- Africa/Middle East 1%
The geographic allocation heavily favors North America (81%), with modest exposure to developed Europe and emerging Asia. This distribution reflects a strong bias towards the US market, which may limit global diversification benefits but aligns with the portfolio's growth objectives. Emerging markets are underrepresented, which could be an area for diversification improvement.
Market capitalization
- Mega-cap 42%
- Large-cap 31%
- Mid-cap 19%
- Small-cap 6%
- Micro-cap 2%
The market capitalization breakdown shows a preference for mega and big-cap stocks, which comprise 73% of the portfolio. This focus on larger companies is likely a factor in the portfolio's historical performance, as these companies tend to be more stable and have lower volatility than smaller companies. However, the presence of medium, small, and micro-cap stocks ensures some level of diversification and exposure to growth opportunities in smaller companies.
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.
Based on the Efficient Frontier, the portfolio's current allocation suggests it is positioned near the optimal risk-return ratio for its asset mix. While adjustments could potentially enhance returns or reduce volatility, the portfolio is well-optimized within its growth-focused strategy. Investors should regularly review their allocation to ensure it remains aligned with their risk tolerance and investment goals.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.52%
The dividend yields from the two ETFs contribute to the portfolio's overall return, with a total yield of 1.52%. While not the primary focus of a growth-oriented strategy, dividends provide a source of income and can offer some cushion during market volatility. The higher yield from the international ETF also highlights the benefit of including global equities for income diversification.
Ongoing product costs
- 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) 0.03%
The portfolio benefits from very low costs, with total expense ratios (TER) of 0.03% for the US ETF and 0.05% for the international ETF. Low costs are crucial for long-term growth, as they directly impact net returns. This efficient cost structure is a significant advantage, allowing more of the investment's return to compound over time.
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