Growth-focused portfolio with strong US equity presence and moderate international exposure

Report created on Sep 15, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards US equities, with 60% in a broad market index fund and 20% in a momentum ETF, both tracking the S&P 500. Additionally, it includes a 10% allocation to a US small-cap value ETF and a 10% stake in an international index fund. This composition suggests a growth-oriented strategy with a tilt towards large-cap and momentum stocks, while still incorporating value and international diversification. The portfolio's focus on well-established, large-cap stocks is balanced by the inclusion of small-cap and international positions to enhance potential returns and reduce risk through diversification.

Growth Info

Historical performance shows a Compound Annual Growth Rate (CAGR) of 17.49%, with a maximum drawdown of -34.40%. These figures indicate strong past growth but also highlight potential volatility and risk, as evidenced by the significant drawdown. The portfolio's performance is notably concentrated, with 90% of returns generated on just 21 days, emphasizing the impact of short-term market movements on overall returns. Comparing this performance to benchmarks would require considering the portfolio's aggressive growth profile and its higher-than-average risk tolerance.

Projection Info

Monte Carlo simulations, based on 1,000 scenarios, project a wide range of outcomes, with the median scenario suggesting a 656.8% return. This forward-looking analysis, while inherently uncertain, supports the portfolio's growth potential. However, it's crucial to remember that such simulations use historical data and cannot predict future market conditions accurately. They are useful for understanding potential volatility and assessing risk but should not be the sole basis for investment decisions.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely comprised of stocks, indicating a high-risk, high-reward strategy. This asset class is known for its potential for significant returns over the long term but comes with higher volatility compared to bonds or cash. The absence of non-equity investments means the portfolio may lack cushioning during market downturns. Diversifying across different asset classes, such as including fixed-income securities or real estate, could reduce risk without drastically compromising growth potential.

Sectors Info

  • Technology
    27%
  • Financials
    17%
  • Industrials
    10%
  • Telecommunications
    10%
  • Consumer Discretionary
    8%
  • Health Care
    7%
  • Consumer Staples
    6%
  • Consumer Discretionary
    5%
  • Energy
    4%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

The sector allocation shows a heavy emphasis on technology and financial services, which are sectors known for their growth potential but also for their volatility. The presence of industrials, communication services, and consumer cyclicals adds to the portfolio's growth orientation but increases its sensitivity to economic cycles. Balancing these with more defensive sectors like healthcare and consumer staples could provide stability during market fluctuations.

Regions Info

  • North America
    90%
  • Europe Developed
    4%
  • Japan
    2%
  • Asia Emerging
    2%
  • Asia Developed
    1%

With 90% of assets in North America and minimal exposure to emerging and developed markets outside the US, the portfolio's geographic distribution reflects a strong home bias. This concentration enhances exposure to US market growth but limits global diversification, potentially missing out on opportunities in faster-growing economies. Increasing allocations to developed and emerging markets outside the US could enhance diversification and reduce geographic risk.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    31%
  • Mid-cap
    15%
  • Small-cap
    6%
  • Micro-cap
    5%

The market capitalization breakdown shows a preference for mega and large-cap stocks, which tend to be more stable and less risky than smaller companies. However, the inclusion of medium, small, and micro-cap stocks via the small-cap value ETF introduces growth opportunities and diversification benefits, albeit with increased volatility. This mix supports a growth-focused strategy while attempting to balance risk through diversification across different company sizes.

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.

Considering the Efficient Frontier, this portfolio appears to be positioned for high growth but may not be fully optimized for the best possible risk-return ratio. Adjusting the asset allocation to include investments with lower correlation to the existing portfolio could potentially move it closer to the Efficient Frontier, enhancing returns for a given level of risk or reducing risk for a given level of expected return. However, any changes should be carefully considered in the context of the investor's risk tolerance and investment goals.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.30%
  • Fidelity 500 Index Fund 1.10%
  • Invesco S&P 500® Momentum ETF 0.50%
  • Weighted yield (per year) 1.15%

The overall dividend yield of 1.15% suggests that income generation is not a primary goal of this portfolio, which is consistent with its growth focus. However, dividends can provide a source of steady income and contribute to total returns, especially in volatile or down markets. Considering higher dividend-yielding investments could offer an additional layer of return and potential risk mitigation.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.06%
  • Fidelity 500 Index Fund 0.02%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.07%

The portfolio's total expense ratio (TER) of 0.07% is impressively low, which is beneficial for long-term growth as costs can significantly erode returns over time. Keeping investment costs low is a crucial aspect of maximizing net returns, and this portfolio's focus on low-cost index funds and ETFs aligns well with best practices in cost management.

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