Growth oriented equity heavy portfolio with strong US tech exposure and modest bond and gold

Report created on Nov 21, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is concentrated in equities with four ETFs making up 90% of assets and small allocations to bonds gold and cash. Equity weight is roughly 89% with a single large-cap growth ETF at 60% and international and small cap value filling much of the remainder. This structure matters because concentration in one large ETF increases single-product and style risk even if holdings are diversified internally. Recommendation: set clear target ranges and a rebalancing plan to limit single-ETF drift and ensure allocations remain aligned with your intended risk profile without changing core investment goals.

Growth Info

Historically the portfolio shows strong returns with a reported CAGR of 18.14% where CAGR or Compound Annual Growth Rate measures average annual growth similar to a steady cruise speed over a multi-year trip. Using a $10,000 example at that CAGR for five years the value would approximate $23,000 illustrating the power of compound returns. Max drawdown of -31.22% shows the largest peak to trough loss and highlights volatility. Historical results are useful for context but not predictive so treat these figures as a past performance snapshot not a guarantee of future outcomes.

Projection Info

A Monte Carlo simulation ran 1,000 paths to estimate possible future outcomes using historical return patterns and randomness; Monte Carlo is a method that simulates many possible futures by sampling returns which helps visualize upside and downside ranges. Key percentiles show wide dispersion with a 5th percentile outcome at 56.2% and median at 465% relative to start at the simulation horizon used. Simulations assume return distributions and correlations remain similar which is a limitation; use these projections for scenario planning not precise forecasts and prepare plans for downside scenarios.

Asset classes Info

  • Stocks
    89%
  • Other
    5%
  • Bonds
    5%
  • Cash
    1%

Asset class exposure is heavily skewed to stocks at 89% with bonds 5% gold 5% and cash 1%. Compared with common balanced benchmarks this is equity heavy which increases expected return potential but also volatility and sequence-of-return risk for shorter horizons. Holding multiple asset classes adds diversification benefits because bonds and gold often behave differently than stocks. Recommendation: if the goal is to temper volatility consider modestly increasing fixed income or cash cushions and define the purpose of gold within the portfolio to maintain balance between growth and stability.

Sectors Info

  • Technology
    32%
  • Consumer Discretionary
    12%
  • Financials
    11%
  • Telecommunications
    10%
  • Industrials
    8%
  • Health Care
    7%
  • Energy
    3%
  • Basic Materials
    3%
  • Consumer Staples
    2%
  • Utilities
    1%
  • Real Estate
    1%

Sector allocation shows a notable technology tilt at 32% with consumer cyclical financial services communication services and industrials following; healthcare energy and materials are smaller allocations. A tech-heavy posture can boost long-term growth but often means higher sensitivity to interest rate shifts and sentiment swings. This matches many growth oriented allocations but is overweight relative to more market cap weighted global benchmarks. Recommendation: consider sector rebalancing bands or incremental buys into underweight sectors over time to reduce the chance of sector specific shocks dominating portfolio returns.

Regions Info

  • North America
    71%
  • Europe Developed
    7%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic exposure is heavily North America centric at 71% with Europe developed at 7% and limited emerging market exposure. Being US heavy can capitalize on a strong domestic market but reduces diversification benefits that come from different economic cycles abroad. A more globally balanced split generally reduces country specific risk and smooths volatility. Recommendation: if diversification is a priority consider gradually increasing international or emerging exposure through new contributions or rebalancing to better capture global growth drivers and currency diversification.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    21%
  • Mid-cap
    11%
  • Small-cap
    6%
  • Micro-cap
    5%

Market capitalization mix is tilted to mega and large caps with 47% mega and 21% big cap exposure while small and micro caps total about 11%. Large cap concentration typically offers lower volatility and greater liquidity but may limit exposure to higher growth or value opportunities often found in smaller companies. Small cap value exposure exists but is modest relative to overall equity weight. Recommendation: if you want more upside potential consider a gradual allocation increase to smaller caps or value oriented holdings while monitoring volatility and drawdown tolerance.

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 Efficient Frontier is a concept from mean variance optimization that identifies portfolios offering the highest expected return for a given level of risk; think of it as finding the best tradeoffs between return and volatility using only the current assets. Optimization here would adjust weights among the existing ETFs to move toward that frontier and could potentially improve the portfolio’s risk return ratio without introducing new instruments. Note optimization relies on historical return and volatility estimates which may change; use it as a guide while preserving diversification and practical constraints like liquidity and tax consequences.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Vanguard Total World Bond ETF 4.10%
  • Schwab U.S. Large-Cap Growth ETF 0.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.08%

The portfolio’s overall yield is low at about 1.08% with bond ETF yield higher at 4.10% and equity yields lower particularly the large-cap growth holding at 0.30%. Dividend yield is the income a portfolio produces annually relative to its price and it can smooth returns and provide cash flow. For a growth oriented portfolio low yield is common since growth stocks reinvest earnings. Recommendation: if income is a goal consider increasing allocation to higher yielding instruments or bonds and understand how that tradeoff affects long term capital appreciation.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard Total World Bond ETF 0.05%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • abrdn Physical Gold Shares ETF 0.17%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.07%

Total expense ratio (TER) is a summary of fees investors pay where TER reflects the percentage of assets used annually for fund expenses. The weighted TotalTER sits around 0.07% which is low and supports better long term performance. One holding has a noticeably higher TER than others which could be worth reviewing against its net contribution to returns. Recommendation: periodically evaluate whether higher cost exposures justify their fees and consider lower cost equivalents if they offer similar exposures to capture better net returns over decades.

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