A growth-oriented portfolio with strong US focus and high technology sector exposure

Report created on Dec 31, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards stocks, with a 98.66% allocation, and is primarily composed of ETFs and mutual funds. The Vanguard Total Stock Market Index Fund ETF Shares holds the largest position at 50%, providing broad market exposure. The rest is divided among several growth-oriented funds. This composition aligns with a growth-focused strategy, emphasizing capital appreciation. However, the lack of significant bond exposure suggests limited income generation and potential volatility. Consider diversifying with bonds to balance risk and stabilize returns.

Growth Info

Historically, the portfolio has performed well, boasting a Compound Annual Growth Rate (CAGR) of 12.54%. However, it experienced a significant maximum drawdown of -35.42%, indicating potential vulnerability during market downturns. Compared to typical benchmarks, this performance is robust, but the drawdown highlights the importance of risk management. Maintaining a cash reserve or adding defensive assets could help mitigate future downturns. Remember, past performance doesn't guarantee future results, so continually reassess based on current market conditions.

Projection Info

Using Monte Carlo simulations, which generate potential outcomes based on historical data, this portfolio shows promising future projections. The median outcome suggests a 275.23% increase, with a high probability of positive returns. However, the 5th percentile projects only an 11.62% gain, illustrating potential risks. While simulations offer insights, they rely on past trends and can't predict future market behavior. Regularly reviewing and adjusting the portfolio can help align it with evolving market conditions and personal financial goals.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%
  • Other
    1%

The portfolio is predominantly composed of stocks, with minimal exposure to bonds or other asset classes. This heavy stock allocation suggests a high-risk, high-return strategy typical for growth investors. While this can lead to significant gains, it also increases vulnerability to market volatility. Diversifying into other asset classes, like bonds or real estate, could enhance risk management and provide more stable returns. Consider evaluating the risk-return balance to ensure it aligns with your investment objectives.

Sectors Info

  • Technology
    31%
  • Health Care
    12%
  • Financials
    11%
  • Industrials
    10%
  • Telecommunications
    10%
  • Consumer Discretionary
    7%
  • Consumer Discretionary
    5%
  • Consumer Staples
    4%
  • Energy
    3%
  • Real Estate
    3%
  • Basic Materials
    2%
  • Utilities
    2%

There is a notable concentration in the technology sector, accounting for 31.46% of the portfolio. While this sector has driven growth recently, it can be highly volatile, especially during economic shifts or interest rate changes. Other sectors, like healthcare and financial services, provide some balance but are less represented. To mitigate sector-specific risks, consider increasing exposure to underrepresented sectors. This approach could enhance diversification, reducing the impact of any single sector downturn on overall portfolio performance.

Regions Info

  • North America
    93%
  • Europe Developed
    4%
  • Asia Developed
    1%
  • Latin America
    1%

The portfolio is heavily concentrated in North America, with 93.40% exposure, limiting geographic diversification. While this aligns with a focus on the US market, it could miss growth opportunities in other regions. Diversifying geographically can help cushion against regional economic downturns and political risks. Consider increasing allocations to Europe, Asia, or emerging markets to capture broader global growth potential, which can lead to a more balanced risk profile and potentially 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 could benefit from optimization using the Efficient Frontier, which identifies the best possible risk-return ratio based on current assets. This process involves adjusting allocations to achieve maximum returns for a given risk level. While the portfolio is already growth-focused, slight adjustments could enhance efficiency. Regularly reassessing and optimizing the portfolio can ensure it remains aligned with financial objectives and market conditions, ultimately improving performance outcomes.

Dividends Info

  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Weighted yield (per year) 0.65%

The portfolio's dividend yield is relatively low at 0.65%, reflecting its growth-oriented nature. While dividends can provide steady income, this portfolio prioritizes capital gains. For investors seeking income, increasing allocations to dividend-paying stocks or funds could enhance cash flow. However, if growth is the primary goal, maintaining the current focus on capital appreciation is appropriate. Regularly assess dividend strategies to ensure they align with changing financial needs and goals.

Ongoing product costs Info

  • FIDELITY ADVISOR GROWTH OPPORTUNITIES FUND CLASS I 0.44%
  • NEW PERSPECTIVE FUND CLASS R-6 0.41%
  • VANGUARD EXPLORER FUND ADMIRAL SHARES 0.34%
  • VANGUARD STRATEGIC EQUITY FUND INVESTOR SHARES 0.17%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.20%

The portfolio's total expense ratio (TER) is low at 0.2%, indicating efficient cost management. Lower costs can significantly enhance long-term returns by reducing the drag on performance. The Vanguard Total Stock Market Index Fund ETF Shares, with a TER of 0.03%, contributes to this efficiency. Continuously monitoring and minimizing fees can help maximize returns. Consider reviewing higher-cost funds to determine if they provide sufficient value and exploring lower-cost alternatives if necessary.

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