Growth-focused portfolio with a strong tilt towards US equities and technology sector

Report created on Sep 24, 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 is predominantly invested in equities, with a significant 60% allocation to a Vanguard S&P 500 ETF, indicating a strong focus on US large-cap stocks. The inclusion of a Vanguard Target Retirement 2050 Fund suggests a long-term growth strategy, complemented by international and US momentum ETFs for potential outperformance. This composition reflects a growth-oriented approach, albeit with moderate diversification across asset classes and sectors.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 14.88%, with a maximum drawdown of -33.55%. This performance, characterized by substantial growth amidst notable volatility, suggests resilience during market fluctuations. The days contributing most to returns highlight the impact of short-term gains, underscoring the importance of staying invested through market cycles for growth portfolios.

Projection Info

Monte Carlo simulations, utilizing historical data to forecast future performance, suggest a wide range of outcomes. With 992 out of 1,000 simulations yielding positive returns, the median projection indicates a significant potential for growth. However, the broad spread between the 5th and 67th percentiles highlights the inherent uncertainties in predicting market movements, emphasizing the need for risk tolerance in growth investing.

Asset classes Info

  • Stocks
    97%
  • Bonds
    2%
  • Cash
    1%

The portfolio's heavy reliance on stocks (97%) aligns with its growth profile, offering higher potential returns at the expense of increased volatility. The minimal bond (2%) and cash (1%) holdings serve as slight buffers against market swings. This asset allocation is typical for investors with a long-term horizon and a higher risk tolerance, aiming for substantial capital appreciation.

Sectors Info

  • Technology
    29%
  • Financials
    18%
  • Industrials
    10%
  • Telecommunications
    9%
  • Health Care
    9%
  • Consumer Discretionary
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Consumer Discretionary
    2%
  • Real Estate
    2%

With technology (29%) and financial services (18%) as the leading sectors, the portfolio is positioned to benefit from growth in these dynamic areas. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or economic downturns affecting these industries more acutely. Balancing sector exposures can mitigate these risks while still capturing growth opportunities.

Regions Info

  • North America
    84%
  • Europe Developed
    9%
  • Japan
    2%
  • Asia Developed
    1%
  • Asia Emerging
    1%
  • Australasia
    1%

The geographic allocation shows a heavy bias towards North America (84%), particularly the US, with limited exposure to international markets. This concentration benefits from the robust performance of US equities but also limits global diversification. Expanding into more international and emerging markets could enhance diversification and potentially tap into faster-growing economies.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    32%
  • Mid-cap
    17%
  • Small-cap
    4%
  • Micro-cap
    2%

The portfolio's focus on mega (42%) and big (32%) cap stocks underscores its preference for established, less volatile companies. While this may provide stability, incorporating a greater mix of medium, small, and micro-cap stocks could offer higher growth potential and diversification benefits, 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.

The current portfolio, while growth-oriented, may benefit from optimizing its risk-return profile. Employing the Efficient Frontier concept could identify allocations that offer the highest expected return for a given level of risk. Adjusting the mix towards more diversified and potentially less correlated assets could improve the portfolio's efficiency, balancing growth aspirations with risk management.

Dividends Info

  • Invesco S&P International Developed Momentum ETF 1.40%
  • VANGUARD TARGET RETIREMENT 2050 FUND INVESTOR SHARES 1.90%
  • Vanguard U.S. Momentum Factor 0.80%
  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 1.26%

The overall dividend yield of 1.26% contributes to the portfolio's total returns, complementing capital gains. For growth-oriented investors, reinvesting these dividends can compound growth over time. However, the primary focus remains on capital appreciation rather than income generation.

Ongoing product costs Info

  • Invesco S&P International Developed Momentum ETF 0.25%
  • VANGUARD TARGET RETIREMENT 2050 FUND INVESTOR SHARES 0.08%
  • Vanguard U.S. Momentum Factor 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.07%

With a total expense ratio (TER) of 0.07%, the portfolio benefits from low costs, enhancing net returns over the long term. Lower costs are crucial for growth strategies, as they allow a larger portion of investment returns to compound, driving wealth accumulation.

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