A growth-focused portfolio with tech concentration and moderate international exposure

Report created on Mar 20, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio primarily consists of three ETFs: Vanguard Total Stock Market (60%), Vanguard Information Technology (30%), and Vanguard Total International Stock (10%). This composition leans heavily towards U.S. equities, with a significant tilt towards technology. Compared to a typical benchmark, this portfolio exhibits a strong growth orientation but lacks significant diversification across asset classes, relying almost entirely on stocks. To enhance diversification, consider incorporating other asset classes like bonds or real estate, which can help manage risk and smooth out returns during market downturns.

Growth Info

Historically, the portfolio has performed well, achieving a CAGR of 14.44%, which indicates strong growth over time. However, it experienced a maximum drawdown of -33.60%, highlighting potential volatility. This performance is notable when compared to a typical benchmark, showcasing the portfolio's capability to capitalize on market uptrends. Despite the impressive historical returns, it's important to remember that past performance does not guarantee future results. To mitigate potential drawdowns, consider strategies such as diversifying into less volatile assets or incorporating hedging techniques.

Projection Info

Monte Carlo simulations, which use historical data to project potential future outcomes, suggest a wide range of possible returns. The 5th percentile projection shows a 42.5% increase, while the 67th percentile projects 596.3%. This indicates significant uncertainty, but also potential for high returns. With 981 out of 1,000 simulations showing positive returns, the portfolio's growth potential remains promising. However, it's important to note that simulations rely on past data and cannot predict future market conditions. Regularly reviewing and adjusting the portfolio can help align it with changing market dynamics and personal goals.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's allocation is heavily skewed towards stocks, with 99% in equities and only 1% in cash. This concentration in a single asset class offers growth potential but increases risk, especially in volatile markets. Compared to a diversified benchmark, this allocation lacks balance. To improve risk management, consider incorporating other asset classes such as bonds, which can provide stability and income during market downturns. This diversification can help cushion the portfolio during periods of equity market stress and contribute to a more consistent return profile over time.

Sectors Info

  • Technology
    49%
  • Financials
    11%
  • Consumer Discretionary
    8%
  • Health Care
    8%
  • Industrials
    7%
  • Telecommunications
    6%
  • Consumer Staples
    4%
  • Energy
    3%
  • Real Estate
    2%
  • Basic Materials
    2%
  • Utilities
    2%

The portfolio is concentrated in the technology sector, making up 49% of its composition. Other sectors like financial services (11%) and consumer cyclicals (8%) are less prominent. This tech-heavy allocation aligns with recent growth trends but may lead to increased volatility, especially during interest rate hikes or sector-specific downturns. Compared to a diversified benchmark, this sector concentration is notable. To mitigate sector-specific risks, consider reallocating some assets to underrepresented sectors, which can enhance diversification and potentially reduce volatility.

Regions Info

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

Geographically, the portfolio is predominantly focused on North America, with 90% exposure. This heavy reliance on a single region limits global diversification and may increase vulnerability to U.S.-specific economic issues. With only 10% allocated to international markets, the portfolio underexposes itself to potential growth opportunities abroad. Compared to a global benchmark, this geographic allocation is concentrated. To enhance diversification and capture global growth, consider increasing exposure to international markets, including emerging economies, which can provide additional growth opportunities.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    29%
  • Mid-cap
    17%
  • Small-cap
    7%
  • Micro-cap
    2%

The portfolio's market capitalization distribution is skewed towards larger companies, with 44% in mega-cap and 29% in big-cap stocks. This focus on larger companies provides stability and reliability, as these firms often have established business models and market presence. However, the portfolio's limited allocation to small-cap stocks (7%) may restrict growth potential. Compared to a diversified benchmark, this market cap allocation is top-heavy. To capture potential high-growth opportunities, consider increasing exposure to small- and mid-cap stocks, which can enhance diversification and offer higher 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.

The portfolio's current allocation can be optimized using the Efficient Frontier, which identifies the best possible risk-return ratio based on existing assets. This optimization focuses on achieving the highest return for a given level of risk. While the portfolio is growth-oriented, exploring optimal allocation changes within current holdings can enhance efficiency. This process does not necessarily involve diversification but rather fine-tuning the balance between risk and return. Regularly reassessing the portfolio's position on the Efficient Frontier can ensure it aligns with evolving market conditions and personal investment goals.

Dividends Info

  • Vanguard Information Technology Index Fund ETF Shares 0.70%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.26%

The portfolio's dividend yield is 1.26%, with contributions from the Vanguard Total Stock Market (1.30%) and Vanguard Total International Stock (2.70%) ETFs. While dividends provide a steady income stream, the portfolio's growth focus means dividends play a secondary role. Compared to income-focused portfolios, this yield is moderate. For investors seeking higher income, consider allocating a portion of the portfolio to dividend-focused funds or stocks. However, for those prioritizing growth, maintaining the current allocation can continue to capitalize on capital appreciation while still benefiting from some dividend income.

Ongoing product costs Info

  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.06%

The portfolio's costs are impressively low, with a total expense ratio (TER) of 0.06%. This cost efficiency supports better long-term performance by minimizing the drag on returns. Compared to industry averages, these costs are commendably low, ensuring more of the portfolio's growth is retained. Maintaining low costs is a key advantage, and continuing to monitor expense ratios can help preserve this benefit. While the current costs are well-optimized, regularly reviewing fund fees and exploring cost-effective alternatives can further enhance net returns.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey