A high growth stock heavy portfolio with strong diversification but elevated leverage driven risk

Report created on Dec 15, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is very stock heavy, with about half in a broad US index fund, 30% in broad international stocks, and 20% in a leveraged US index fund. Cash plays only a tiny role. Structurally, this looks like a classic growth setup, tilted toward equities with a kicker from leverage, and it loosely mirrors a global equity benchmark but with extra emphasis on the US. That alignment with broad markets is a big positive for simplicity and diversification. The leveraged slice, though, pushes risk higher than most growth profiles. Tightening the overlap between the two US index funds could keep the growth orientation while dialing back unnecessary volatility.

Growth Info

Historically, this mix has delivered very strong returns, with a compound annual growth rate (CAGR) of about 16%. CAGR is just the average yearly “speed” of growth, smoothing the ups and downs. A hypothetical $10,000 could have grown to over $60,000 at that pace, easily beating many broad equity benchmarks over long periods. The tradeoff is clear in the max drawdown of around -41%, meaning at one point the portfolio was down that much from a previous peak. That level of decline is normal for aggressive, equity-heavy setups. It’s important to remember that past returns, especially boosted by leverage, may not repeat in the same way.

Projection Info

The forward projection uses a Monte Carlo simulation, which basically means the computer reruns thousands of “what if” market paths using patterns from history. Across 1,000 simulations, the median outcome shows very strong growth, with typical scenarios multiplying wealth several times over. The 5th percentile result (around 81% of starting value) shows that even in rough paths, the portfolio often ends up near break-even to moderately down, while the higher percentiles explode upward. The simulated annualized return near 19% reflects both the equity tilt and leverage. These simulations are helpful for framing possibilities, but they still rely on historical behavior, which can change sharply in future markets.

Asset classes Info

  • Stocks
    95%
  • Cash
    4%

The asset class split is simple: roughly 95% in stocks and just a sliver in cash. This is firmly in high-growth territory, with minimal ballast. Compared with many growth benchmarks that might keep a small stabilizing slice in bonds or other diversifiers, this lineup leans fully into equity risk. That’s great for maximizing long-term upside potential, especially for long horizons, but it does mean larger swings in account value. The high diversification score shows the stock side itself is spread widely, which is a real strength. Adding even a modest non-stock sleeve could smooth the ride without dramatically changing the growth character.

Sectors Info

  • Technology
    30%
  • Financials
    16%
  • Consumer Discretionary
    11%
  • Industrials
    10%
  • Telecommunications
    9%
  • Health Care
    9%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

Sector exposure mirrors a broad global equity style, with technology around 30% and healthy representation in financials, consumer areas, industrials, and healthcare. This allocation is well-balanced and aligns closely with global standards, which is a strong sign of diversification. Tech leadership has helped returns in recent years, but it can be more volatile when interest rates rise or when growth expectations cool. Exposure to more defensive areas like utilities, consumer defensive, and healthcare is present but relatively modest. Keeping this broad, benchmark-like sector spread is a positive; any tweaks would be about personal comfort with tech-driven swings rather than fixing a structural problem.

Regions Info

  • North America
    72%
  • Europe Developed
    11%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, about 72% sits in North America, with most of the rest spread across Europe, Japan, and other developed and emerging regions. That tilt toward the US looks similar to many common benchmarks and is a big plus for simplicity, given the dominance and transparency of US markets. International exposure around 30% provides useful diversification, since different regions can lead at different times and may face different economic cycles. Emerging markets are a small but present slice, adding both growth potential and volatility. Investors who want even more global balance might nudge non-US exposure higher, while those confident in US dominance may be comfortable right where it is.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    31%
  • Mid-cap
    16%
  • Small-cap
    2%

Market cap exposure leans heavily toward large companies, with about 75% in mega and big caps, and the rest mainly in medium-sized firms. This is very similar to typical global equity benchmarks, which are naturally dominated by the biggest companies. Large caps tend to be more stable and liquid, with more analyst coverage, while mid caps often bring a balance of growth potential and risk. Very little is in small caps, so the portfolio avoids some of the more extreme volatility that can come from tiny companies. This structure is efficient and familiar; anyone wanting extra “small company” punch would need to add a more explicit tilt.

Redundant positions Info

  • Vanguard S&P 500 ETF
    ProShares Ultra S&P500
    High correlation

Correlation measures how often assets move together; a value near 1 means they usually rise and fall in sync. Here, the standard US index fund and the leveraged US index fund are highly correlated, since they track the same market, with one simply magnifying the daily moves. That means the leveraged position adds little diversification benefit and mainly increases risk and drawdowns. In market selloffs, both tend to drop together, with the leveraged fund falling faster. Consolidating exposure into fewer, less overlapping holdings can keep the core market exposure intact while trimming “double bets” that don’t meaningfully spread 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.

On a risk versus return basis, this portfolio likely sits above the risk level many growth investors would need, primarily because of the leveraged position. The Efficient Frontier is a tool that finds the mix of current holdings that gives the best possible trade-off between risk (volatility) and return, without adding new assets. Because two holdings are highly correlated, shifting weight from the leveraged ETF toward the unleveraged index and international fund could move the portfolio closer to that efficient line. Here, “efficiency” simply means getting the most expected return per unit of risk, not necessarily maximizing diversification or changing the overall growth identity.

Dividends Info

  • ProShares Ultra S&P500 0.70%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.50%

The portfolio’s overall dividend yield is around 1.5%, reflecting a focus on broad market equities rather than high-income strategies. Dividends are the cash payouts companies give shareholders, and over long periods they can be a meaningful part of total return. The international fund provides the highest yield among the positions, which slightly boosts the income profile. The leveraged fund naturally has a low yield, since it’s designed for price movement, not income generation. This setup suits a growth-first mindset where price appreciation is the main driver. Anyone seeking more regular cash flow would generally look to modestly raise exposure to higher-yielding holdings or complementary income sources.

Ongoing product costs Info

  • ProShares Ultra S&P500 0.91%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.21%

The blended total expense ratio around 0.21% is impressively low, especially given the presence of a leveraged product with a 0.91% fee. The two core index funds are extremely cheap, and that’s a major strength for long-term compounding, because lower costs mean more of the market’s return stays in the account every year. Over decades, saving even a fraction of a percent annually can translate into meaningful extra capital. The main cost drag is the leveraged ETF; if that slice were ever reduced or replaced with a lower-cost option, overall expenses would drop further. As it stands, the cost profile already supports strong long-term performance.

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