Growth-focused portfolio with a strong tilt towards US equities and technology sector
Report created on Aug 19, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 55.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 15.00% -
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 15.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 15.00%
This portfolio is heavily weighted towards US equities, particularly with a significant allocation in the Vanguard S&P 500 ETF, representing large-cap stocks. The inclusion of the Avantis® U.S. Small Cap Value ETF and Invesco S&P 500® Momentum ETF introduces a blend of small-cap value and large-cap momentum stocks, respectively, aiming to capitalize on both market inefficiencies and trends. The Vanguard Total International Stock Index Fund ETF Shares offer some international exposure, though it's relatively minor compared to the domestic focus. This composition suggests a growth-oriented strategy, leveraging the stability and potential of large-cap stocks while seeking additional growth and diversification through small-cap and international investments.
Growth
Historically, this portfolio has demonstrated a strong performance with a Compound Annual Growth Rate (CAGR) of 16.66%. The maximum drawdown of -35.13% indicates a period of significant value decrease, which is a critical risk factor for investors to consider. However, the days contributing to 90% of returns being limited to 18.0 highlights the portfolio's potential for significant gains in relatively short periods. When compared to benchmark indices, this performance must be evaluated in the context of the portfolio's risk score and growth profile, suggesting a relatively aggressive strategy that has historically paid off.
Projection
Using Monte Carlo simulations, which project future outcomes based on historical data, the portfolio shows a wide range of potential future values. The median (50th percentile) outcome suggests a substantial increase, with an annualized return of all simulations at 18.02%. However, it's essential to note that such projections have limitations and cannot guarantee future performance. The range of outcomes, from the 5th to 67th percentile, underscores the inherent uncertainty and risk, particularly relevant for growth-oriented portfolios.
Asset classes
- Stocks 99%
The portfolio's allocation is overwhelmingly in stocks (99%), with a negligible amount in cash or other asset classes. This concentration in equities is typical for growth-oriented portfolios, aiming for higher returns at the expense of higher volatility and risk. The absence of fixed-income investments or alternative assets limits diversification, potentially increasing the portfolio's sensitivity to market fluctuations.
Sectors
- Technology 25%
- Financials 18%
- Consumer Discretionary 12%
- Industrials 11%
- Telecommunications 9%
- Health Care 7%
- Consumer Staples 6%
- Energy 5%
- Basic Materials 3%
- Utilities 2%
- Real Estate 2%
Sector allocation is led by technology (25%), financial services (18%), and consumer cyclicals (12%), aligning with a growth investment strategy that leans heavily on sectors expected to outperform in expanding economies. However, this concentration also exposes the portfolio to sector-specific risks, such as regulatory changes or economic shifts affecting these industries disproportionately.
Regions
- North America 86%
- Europe Developed 6%
- Asia Emerging 2%
- Japan 2%
- Asia Developed 2%
- Australasia 1%
- Africa/Middle East 1%
Geographically, the portfolio is predominantly invested in North America (86%), with minimal exposure to international markets. This concentration benefits from the stability and growth of the US economy but limits global diversification. Expanding into more diverse international holdings could mitigate some region-specific risks and tap into growth opportunities in emerging markets.
Market capitalization
- Mega-cap 40%
- Large-cap 29%
- Mid-cap 14%
- Small-cap 8%
- Micro-cap 8%
The market capitalization breakdown shows a preference for mega (40%) and big (29%) cap stocks, indicative of a risk-averse approach within the equity allocation. This strategy focuses on companies with large market presences, potentially offering more stability and less volatility. However, the inclusion of medium, small, and micro caps (totaling 30%) introduces growth potential, albeit with increased 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.
Considering the Efficient Frontier, this portfolio appears well-positioned for its growth objective, balancing risk and return effectively within its current asset allocation. However, there's always room for optimization, especially in enhancing international diversification and adjusting sector concentrations to manage risk better and potentially improve returns.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.70%
- Invesco S&P 500® Momentum ETF 0.60%
- Vanguard S&P 500 ETF 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.70%
- Weighted yield (per year) 1.41%
The dividend yield across the portfolio averages 1.41%, with the highest yield from the Vanguard Total International Stock Index Fund ETF Shares at 2.70%. While not the primary focus of a growth-oriented strategy, these dividends contribute to the portfolio's total return, offering a modest income stream in addition to potential capital gains.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- Invesco S&P 500® Momentum ETF 0.13%
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.08%
With a Total Expense Ratio (TER) averaging 0.08%, the portfolio is cost-efficient, allowing more of the investment returns to contribute to portfolio growth. Lower costs are particularly beneficial over the long term, as they compound alongside the portfolio's returns, enhancing overall performance.
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