A growth-focused portfolio with a strong tilt towards technology and emerging markets
Report created on May 31, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 60.00% -
IE iShares Core MSCI Emerging Markets ETF
IEMG - US46434G1031 20.00% -
QQ Invesco QQQ Trust
QQQ - US46090E1038 20.00%
The portfolio is composed of three ETFs: Vanguard Total World Stock Index Fund ETF Shares (60%), iShares Core MSCI Emerging Markets ETF (20%), and Invesco QQQ Trust (20%). This mix provides a broad exposure to global equities, with a significant emphasis on technology through the QQQ ETF and emerging markets via the iShares ETF. The allocation suggests a strategy aiming for growth, leveraging the potential high returns of tech stocks and emerging markets, balanced by the diversified exposure of the Vanguard ETF.
Growth
Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 11.22%, with a maximum drawdown of -31.97%. This performance indicates a strong growth trajectory, albeit with significant volatility, as evidenced by the drawdown. The days contributing most to returns highlight the portfolio's sensitivity to market highs and lows, a typical characteristic of growth-oriented investments.
Projection
Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential returns for this portfolio. With 948 out of 1,000 simulations showing positive returns, the median projected growth is substantial. However, the presence of simulations with negative returns underscores the inherent risks, particularly given the portfolio's exposure to volatile sectors and regions.
Asset classes
- Stocks 99%
- Cash 1%
The asset allocation is overwhelmingly in stocks (99%), with a negligible cash holding (1%), indicating a strategy fully committed to equity growth. This heavy equity weighting is appropriate for growth-focused investors but comes with higher volatility and risk, especially in short to medium terms.
Sectors
- Technology 29%
- Financials 15%
- Consumer Discretionary 12%
- Telecommunications 10%
- Industrials 9%
- Health Care 8%
- Consumer Staples 6%
- Basic Materials 4%
- Energy 3%
- Utilities 2%
- Real Estate 2%
The sectoral allocation shows a strong emphasis on technology (29%), followed by financial services and consumer cyclicals. This tech-heavy approach aligns with the portfolio's growth orientation but may increase susceptibility to sector-specific risks, such as regulatory changes or economic cycles affecting tech valuations.
Regions
- North America 58%
- Asia Emerging 14%
- Europe Developed 10%
- Asia Developed 8%
- Japan 4%
- Africa/Middle East 3%
- Latin America 2%
- Australasia 1%
- Europe Emerging 1%
Geographically, the portfolio is heavily weighted towards North America (58%), with significant allocations to emerging markets in Asia (14%) and developed Europe (10%). This distribution supports diversification across different economic cycles and growth potentials, though it may also introduce geopolitical and currency risks.
Market capitalization
- Mega-cap 46%
- Large-cap 32%
- Mid-cap 17%
- Small-cap 4%
The market capitalization breakdown reveals a preference for mega (46%) and big (32%) cap stocks, indicative of an investment strategy favoring established, large-scale companies. This bias towards larger companies may provide stability but could limit exposure to high-growth small and micro-cap opportunities.
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's current configuration appears well-optimized for growth within the constraints of its risk score and diversification classification. However, continual monitoring of the Efficient Frontier could reveal opportunities to adjust allocations for an even better risk-return trade-off, especially considering the tech sector's volatility.
Dividends
- iShares Core MSCI Emerging Markets ETF 2.90%
- Invesco QQQ Trust 0.60%
- Vanguard Total World Stock Index Fund ETF Shares 1.80%
- Weighted yield (per year) 1.78%
The portfolio's dividend yield averages 1.78%, with the highest yield from the iShares Core MSCI Emerging Markets ETF. While not primarily income-focused, these dividends contribute to total returns and provide a modest income stream, which can be reinvested for compounding growth.
Ongoing product costs
- iShares Core MSCI Emerging Markets ETF 0.09%
- Invesco QQQ Trust 0.20%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.10%
With a total expense ratio (TER) of 0.10%, the portfolio is cost-efficient, minimizing the drag on returns due to fees. This low-cost approach enhances long-term growth potential by retaining more returns for reinvestment.
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