This portfolio has only about 1.4 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

A growth-focused portfolio with a strong tilt towards US equities and a speculative position in Bitcoin

Report created on May 26, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

The portfolio predominantly invests in US equities, evidenced by a 65% allocation to the Vanguard S&P 500 ETF, 15% each in Avantis® U.S. Small Cap Value and Invesco S&P MidCap Quality ETFs, and a speculative 5% in the Fidelity Wise Origin Bitcoin Trust. This composition underscores a growth-oriented strategy with a significant emphasis on large-cap stocks, complemented by mid and small-cap exposures to potentially enhance returns. The inclusion of a Bitcoin ETF introduces an alternative investment element, diversifying the risk profile but also increasing potential volatility.

Growth Info

Historically, the portfolio has demonstrated a robust Compound Annual Growth Rate (CAGR) of 17.59%, with a maximum drawdown of -20.50%. This performance, characterized by significant growth amidst manageable downturns, suggests a well-executed strategy in capturing equity market upsides. However, the concentration in specific asset classes and sectors may have contributed to this volatility. The days contributing to 90% of returns being limited to six indicates that a few high-performing days significantly impact overall performance, a common characteristic of growth-focused portfolios.

Projection Info

Utilizing a Monte Carlo simulation, which projects future performance based on historical data and random variations, the portfolio's potential outcomes span a wide range. With 996 out of 1,000 simulations showing positive returns and a median projected increase of 2,270%, optimism for future growth is warranted. However, it's crucial to understand that such simulations assume historical market conditions will repeat, an assumption that may not always hold true, especially for alternative investments like Bitcoin.

Asset classes Info

  • Stocks
    95%
  • Other
    5%

The portfolio's asset allocation leans heavily towards stocks (95%), with a minor allocation to alternatives represented by Bitcoin (5%). This allocation reinforces the portfolio's growth orientation but limits diversification across asset classes. While stocks offer the potential for high returns, they also carry a higher risk of volatility. The absence of fixed income or real assets may expose the portfolio to market downturns without a cushioning effect from less volatile assets.

Sectors Info

  • Technology
    24%
  • Financials
    16%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    6%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocations highlight a concentration in technology (24%), financial services (16%), and industrials (12%), which are sectors typically associated with growth but also with higher volatility. The technology sector, in particular, can be sensitive to interest rate changes and market sentiment, suggesting a need for cautious monitoring. Expanding into underrepresented sectors or those with defensive characteristics could provide a buffer during market fluctuations.

Regions Info

  • North America
    94%
  • Europe Developed
    1%

Geographic exposure is overwhelmingly North American (94%), with minimal exposure to developed Europe (1%) and no significant investment in emerging markets or other developed regions. This concentration enhances exposure to the US economy's growth potential but raises concerns about geographic diversification. Including assets from diverse economies could mitigate region-specific risks and tap into growth opportunities elsewhere.

Market capitalization Info

  • Mega-cap
    30%
  • Large-cap
    22%
  • Mid-cap
    18%
  • Small-cap
    17%
  • Micro-cap
    7%

The market capitalization breakdown shows a balanced exposure across mega (30%), big (22%), medium (18%), small (17%), and micro (7%) caps. This distribution suggests a deliberate strategy to blend the stability of large-cap companies with the growth potential of smaller firms. However, the portfolio may benefit from reassessing the balance to ensure it aligns with the current market outlook and risk tolerance.

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 analysis suggests that optimizing the portfolio for the same level of risk could potentially increase the expected return to 46.95%. This optimization indicates room for reallocating assets to achieve a more favorable risk-return profile. Adjustments might include diversifying across more asset classes or rebalancing sector and geographic exposures to align with an efficient frontier analysis, which aims to maximize returns for a given level of risk.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.80%
  • Vanguard S&P 500 ETF 1.30%
  • Invesco S&P MidCap Quality ETF 5.30%
  • Weighted yield (per year) 1.91%

The portfolio's dividend yield stands at 1.91%, driven primarily by the Invesco S&P MidCap Quality ETF's 5.30% yield. While dividends contribute to total returns and provide a source of income, the portfolio's growth focus suggests dividends are not a primary consideration. Investors seeking income alongside growth might look into increasing allocations to higher-yielding assets or diversifying into income-focused investments.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard S&P 500 ETF 0.03%
  • Invesco S&P MidCap Quality ETF 0.25%
  • Weighted costs total (per year) 0.09%

With a total expense ratio (TER) of 0.09%, the portfolio benefits from relatively low costs, which is advantageous for long-term growth. Low-cost ETFs, such as the Vanguard S&P 500 ETF at 0.03%, help maximize returns by minimizing the drag on performance due to fees. Continuously monitoring and managing investment costs remains crucial in preserving the portfolio's efficiency.

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