A growth-focused portfolio with strong emphasis on stocks and minimal bond exposure
Report created on Oct 27, 2025Risk profile
5/7
Diversification profile
5/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 62.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 18.00% -
VU Vanguard Growth Index Fund ETF Shares
VUG - US9229087369 10.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 5.00% -
BN Vanguard Total Bond Market Index Fund ETF Shares
BND - US9219378356 5.00%
This portfolio primarily invests in ETFs, with a significant allocation to the Vanguard Total Stock Market Index Fund ETF Shares, making up 62% of the portfolio. The presence of the Vanguard Total International Stock Index Fund ETF Shares and Vanguard Growth Index Fund ETF Shares further emphasizes a growth-oriented strategy. The inclusion of a small cap value ETF and a total bond market ETF adds a layer of diversification, though the overall bond exposure remains minimal at 5%.
Growth
With a Compound Annual Growth Rate (CAGR) of 15.43% and a maximum drawdown of -33.42%, the portfolio demonstrates a strong historical performance, albeit with significant volatility. The days contributing to 90% of the returns highlight the impact of short-term gains on overall performance. This volatility is typical for growth-focused portfolios, especially those heavily weighted in stocks.
Projection
Monte Carlo simulations, using 1,000 iterations, project a wide range of outcomes with a median increase of 393.3%. While 97.6% of simulations show positive returns, the variation underscores the inherent uncertainty in market performance. This tool helps in understanding potential risks and returns but remember, past performance is not indicative of future results.
Asset classes
- Stocks 94%
- Bonds 5%
- Cash 1%
The asset allocation leans heavily towards stocks (94%), with minimal bonds (5%) and cash (1%) holdings. This composition is aligned with a growth investment strategy, aiming for higher returns at the expense of higher volatility. Diversifying further into bonds or alternative assets could provide a buffer against market downturns.
Sectors
- Technology 29%
- Financials 14%
- Consumer Discretionary 11%
- Industrials 10%
- Telecommunications 9%
- Health Care 8%
- Consumer Staples 4%
- Energy 3%
- Basic Materials 3%
- Real Estate 2%
- Utilities 2%
The sector distribution shows a strong emphasis on technology (29%), followed by financial services and consumer cyclicals. This tech-heavy allocation may lead to higher volatility, especially during market corrections or interest rate hikes. Diversifying across more sectors could mitigate sector-specific risks.
Regions
- North America 78%
- Europe Developed 7%
- Asia Emerging 3%
- Japan 3%
- Asia Developed 2%
- Australasia 1%
- Africa/Middle East 1%
With 78% of assets in North America, the portfolio has a strong domestic bias. The exposure to developed Europe and emerging Asia is limited, which may reduce potential volatility from international markets but also limits exposure to global growth opportunities. Increasing international diversification could enhance returns and reduce geographic concentration risk.
Market capitalization
- Mega-cap 40%
- Large-cap 27%
- Mid-cap 16%
- Small-cap 7%
- Micro-cap 4%
The market capitalization breakdown reveals a focus on mega (40%) and big (27%) cap stocks, indicating a preference for large, established companies. While this may offer stability, the relatively lower allocation to small and micro-cap stocks could limit potential for high growth. Rebalancing to include more small or micro-cap exposure might offer higher growth prospects.
Redundant positions
-
High correlationVanguard Total Stock Market Index Fund ETF SharesVanguard Growth Index Fund ETF Shares
The high correlation between the Vanguard Total Stock Market Index Fund ETF Shares and Vanguard Growth Index Fund ETF Shares suggests redundancy, limiting the portfolio's diversification benefits. Identifying and reducing overlapping investments can enhance the portfolio's risk-adjusted returns.
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.
To optimize risk vs return, considering the Efficient Frontier could be beneficial. This involves adjusting asset allocation to achieve the best possible return for a given level of risk. For this portfolio, focusing on reducing highly correlated assets and increasing diversification across asset classes, sectors, and geographies could move it closer to the Efficient Frontier.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.70%
- Vanguard Total Bond Market Index Fund ETF Shares 3.70%
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Vanguard Growth Index Fund ETF Shares 0.40%
- Vanguard Total International Stock Index Fund ETF Shares 2.70%
- Weighted yield (per year) 1.48%
The portfolio's dividend yield stands at 1.48%, with the highest yield from the total bond market ETF. While dividends contribute to total returns, the focus on growth stocks typically results in lower dividend yields. Investors prioritizing income might consider reallocating towards higher-yielding assets.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- Vanguard Total Bond Market Index Fund ETF Shares 0.03%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Vanguard Growth Index Fund ETF Shares 0.04%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.05%
The portfolio's total expense ratio (TER) is impressively low at 0.05%, which is beneficial for long-term growth. Lower costs directly translate to higher net returns, underscoring the efficiency of investing in low-cost ETFs.
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