A growth-focused portfolio with strong tech and emerging market positions

Report created on May 6, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

Your portfolio showcases a strategic blend of global and U.S. equities, with a significant tilt towards technology and emerging markets. The allocation across five ETFs, including broad market and specialized sector funds, indicates a pursuit of growth while attempting broad diversification. However, the heavy overlap among the Vanguard ETFs suggests room for optimization to enhance diversification and reduce redundancy.

Growth Info

Historically, your portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.29%, with a maximum drawdown of -33.65%. This performance, while impressive, underscores the portfolio's growth orientation and higher risk profile. The days contributing most to returns highlight the portfolio's sensitivity to market highs and lows, a characteristic of growth-focused investments.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, suggest a wide range of potential outcomes for your portfolio. While the majority of simulations (965 out of 1,000) forecast positive returns, the variation from the 5th to the 67th percentile underscores the inherent uncertainty and risk. These projections are informative but should be viewed with caution, as past performance is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

Your portfolio's near-total allocation to stocks (99%) aligns with its growth profile but carries higher volatility and risk. The minimal cash position (1%) offers little buffer against market downturns. Diversifying across more asset classes, including bonds or real estate, could provide more stability without significantly compromising growth potential.

Sectors Info

  • Technology
    28%
  • Financials
    15%
  • Industrials
    14%
  • Health Care
    10%
  • Consumer Discretionary
    10%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

The sectoral allocation emphasizes technology, financial services, and industrials, reflecting a conviction in these areas' growth prospects. While this focus is consistent with a growth strategy, it may increase susceptibility to sector-specific downturns. Broadening exposure to underrepresented sectors could enhance resilience.

Regions Info

  • North America
    66%
  • Asia Emerging
    12%
  • Europe Developed
    7%
  • Japan
    6%
  • Asia Developed
    4%
  • Africa/Middle East
    2%
  • Latin America
    1%
  • Australasia
    1%

Your portfolio's geographic distribution, heavily weighted towards North America and complemented by emerging markets, supports global diversification. However, the underrepresentation of Europe and other developed markets outside North America and Japan might limit exposure to global growth opportunities. Increasing allocations to underrepresented regions could reduce geographical risk.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    31%
  • Mid-cap
    17%
  • Small-cap
    7%
  • Micro-cap
    1%

The emphasis on mega and big-cap stocks (73%) underlines a preference for established, less volatile companies, balancing the portfolio's overall risk. However, the smaller allocation to mid, small, and micro-caps limits potential high-growth opportunities in these segments. A more balanced market cap distribution could enhance growth prospects and diversification.

Redundant positions Info

  • Vanguard Total World Stock Index Fund ETF Shares
    Vanguard Total Stock Market Index Fund ETF Shares
    Vanguard S&P 500 ETF
    High correlation

The high correlation among the Vanguard ETFs suggests redundancy, diminishing the diversification benefits of holding multiple funds. Diversification is not just about the number of assets but their ability to move independently. Reducing overlap by reallocating assets among less correlated options could improve 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.

Optimizing the portfolio along the Efficient Frontier could improve its risk-return profile. Currently, the high correlation among certain assets suggests an opportunity to enhance efficiency by reducing overlap. Prioritizing diversification through less correlated investments could achieve better risk-adjusted returns without necessarily increasing the portfolio's overall risk.

Dividends Info

  • Global X Robotics & Artificial Intelligence ETF 0.10%
  • Schwab Emerging Markets Equity ETF 2.80%
  • Vanguard S&P 500 ETF 1.40%
  • Vanguard Total World Stock Index Fund ETF Shares 1.90%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Weighted yield (per year) 1.54%

The portfolio's dividend yield contributes to total returns, adding a layer of income on top of capital appreciation. While the overall yield is moderate, it complements the growth strategy by providing periodic cash flows. Reevaluating the balance between growth and income, especially in the context of your investment horizon and cash flow needs, could be beneficial.

Ongoing product costs Info

  • Global X Robotics & Artificial Intelligence ETF 0.68%
  • Schwab Emerging Markets Equity ETF 0.11%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.15%

The portfolio's weighted average total expense ratio (TER) is relatively low, enhancing net returns. Low costs are crucial for long-term growth, as they compound positively over time. Your attention to cost efficiency is commendable and should remain a priority in any future adjustments.

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