Growth-oriented portfolio with a strong tilt towards technology and US markets

Report created on Jul 20, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is predominantly invested in stocks (99%) with a significant focus on technology and US markets. It comprises four Vanguard ETFs, with the largest allocation in the Vanguard S&P 500 ETF (45%), followed by sector-specific and international exposures. The concentration in technology is notable, making up 42% of the sector allocation. This composition suggests a growth-oriented strategy with a high reliance on the performance of the US economy and the tech sector.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 14.84%, with a maximum drawdown of -32.97%. This performance is indicative of a high-growth but also potentially high-volatility investment strategy. The days contributing to 90% of returns being so few highlights the impact of significant market movements on portfolio performance. Comparing this to a diversified benchmark could help in understanding the volatility and return trade-off more clearly.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median scenario suggesting a 596.4% increase in value. While these projections, based on historical data, offer insight into potential future performance, they are not guarantees. The high percentile outcomes underscore the portfolio's growth potential, yet the presence of almost all simulations yielding positive returns may not fully account for extreme market conditions.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's almost exclusive allocation to stocks underscores a high-risk, high-reward strategy. While this aligns with growth objectives, the minimal cash holding limits flexibility in responding to market downturns or taking advantage of new investment opportunities. Diversifying across more asset classes could provide a buffer against stock market volatility.

Sectors Info

  • Technology
    42%
  • Financials
    12%
  • Consumer Discretionary
    10%
  • Telecommunications
    8%
  • Industrials
    8%
  • Health Care
    7%
  • Consumer Staples
    4%
  • Energy
    2%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Utilities
    2%

A 42% allocation to technology significantly exposes the portfolio to sector-specific risks, such as regulatory changes or innovation cycles. While financial services and consumer cyclicals offer some balance, the heavy tech weighting may lead to heightened volatility. Considering a more diversified sector allocation could mitigate some risk without drastically altering the growth trajectory.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

With 81% of assets in North America, the portfolio's geographic diversification is limited, increasing exposure to region-specific economic and political risks. Expanding into more international and emerging markets could enhance diversification and potentially tap into higher growth rates abroad.

Market capitalization Info

  • Mega-cap
    51%
  • Large-cap
    30%
  • Mid-cap
    15%
  • Small-cap
    2%
  • Micro-cap
    1%

The focus on mega (51%) and big (30%) cap stocks is consistent with a growth strategy that prioritizes established, large-scale companies. However, this emphasis might limit exposure to smaller companies with potentially higher growth rates. Increasing the allocation to medium, small, and micro-cap stocks could introduce more growth opportunities and diversification.

Redundant positions Info

  • Vanguard Growth Index Fund ETF Shares
    Vanguard Information Technology Index Fund ETF Shares
    Vanguard S&P 500 ETF
    High correlation

The high correlation among the Vanguard Growth Index Fund ETF Shares, Vanguard Information Technology Index Fund ETF Shares, and Vanguard S&P 500 ETF suggests overlapping investments that may not contribute to diversification. Reducing exposure to similar assets could enhance portfolio efficiency by lowering redundancy.

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, there's an opportunity to optimize the risk-return ratio by addressing the high correlation among certain assets. By diversifying more effectively, it's possible to achieve a similar or improved return profile with potentially lower risk, enhancing the portfolio's efficiency.

Dividends Info

  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.26%

The portfolio's overall dividend yield of 1.26% contributes to total returns, with the Vanguard Total International Stock Index Fund ETF Shares offering the highest yield at 2.80%. While dividends are not the primary focus of this growth-oriented strategy, they offer a source of passive income and can provide some cushion during market dips.

Ongoing product costs Info

  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 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 benefits from low total expense ratios (TER), averaging 0.05%, which is favorable for long-term growth. Keeping costs low is crucial in maximizing returns, especially in a growth-focused portfolio where compound interest plays a significant role over time.

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