Growth-focused portfolio with high exposure to US markets and emphasis on stocks

Report created on Aug 6, 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 heavily favors the Vanguard S&P 500 ETF, constituting 75% of the allocation, complemented by Avantis® U.S. Small Cap Value ETF and Avantis® International Small Cap Value ETF. This composition underlines a strong preference for equity, specifically within the U.S. market, while attempting to balance with small-cap value exposure both domestically and internationally. The significant weighting towards a single ETF suggests a conviction in large-cap U.S. equities, potentially overshadowing the diversification benefits provided by the smaller allocations.

Growth Info

Historical performance showcases a Compound Annual Growth Rate (CAGR) of 16.29%, with a notable maximum drawdown of -36.34%. These figures suggest a portfolio with substantial growth potential but not without considerable risk, as evidenced by the significant drawdown. The days contributing to 90% of returns being concentrated in just 17.0 instances highlight the volatility and the critical timing needed to capture gains in such a growth-oriented strategy.

Projection Info

Monte Carlo simulations, with 1,000 iterations, project a wide range of outcomes, emphasizing the portfolio's growth potential and inherent risk. The median outcome suggests a 548.7% return, indicating optimism for substantial growth, while the dispersion of results, from the 5th to 67th percentiles, underscores the unpredictability of such high equity exposure. These projections, while useful for understanding potential volatility and outcomes, should be interpreted with caution, as past performance is not indicative of future results.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks, without any allocation to bonds, cash, or other asset classes, establishes it as aggressively growth-oriented. This singular focus on equities enhances potential returns but also increases susceptibility to market volatility. Diversifying across different asset classes could provide a buffer during stock market downturns, potentially stabilizing portfolio performance.

Sectors Info

  • Technology
    26%
  • Financials
    16%
  • Consumer Discretionary
    13%
  • Industrials
    11%
  • Health Care
    8%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    5%
  • Basic Materials
    4%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation is heavily weighted towards technology, financial services, and consumer cyclicals, which may drive growth but also expose the portfolio to sector-specific risks. The concentration in technology, in particular, could lead to heightened volatility amid market fluctuations or regulatory changes. Balancing sector exposure could mitigate risks associated with overconcentration and capitalize on opportunities across the broader market.

Regions Info

  • North America
    91%
  • Europe Developed
    4%
  • Japan
    3%
  • Australasia
    1%

Geographically, the portfolio is predominantly invested in North America, with minimal exposure to international markets. This concentration in a single region, while beneficial during periods of strong U.S. market performance, limits global diversification and exposure to potential growth in other regions. Increasing international allocations could enhance diversification and reduce the impact of regional downturns.

Market capitalization Info

  • Mega-cap
    35%
  • Large-cap
    26%
  • Mid-cap
    18%
  • Small-cap
    12%
  • Micro-cap
    8%

The market capitalization breakdown shows a blend of mega, big, medium, small, and micro-cap stocks, with a leaning towards larger companies. This mix supports diversification within the equity component of the portfolio, but the heavy weighting towards larger caps may limit exposure to the potentially higher growth opportunities found in smaller companies. Adjusting this balance could optimize growth potential while managing 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.

Considering the Efficient Frontier, the portfolio's current allocation suggests a strong focus on maximizing returns, albeit with a higher risk profile. Optimization could involve adjusting asset allocations to achieve a more favorable risk-return balance. This might include diversifying across additional asset classes or rebalancing sector and geographic exposures to reduce volatility without significantly compromising growth potential.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.80%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.51%

The dividend yields, while contributing to the portfolio's total return, are relatively modest due to the heavy emphasis on growth stocks, which typically reinvest profits rather than distribute them as dividends. For investors seeking income, increasing allocations to assets with higher dividend yields could provide a more consistent income stream alongside capital appreciation.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.09%

The portfolio benefits from relatively low costs, with a total expense ratio (TER) of 0.09%. This efficiency is crucial for long-term growth, as lower costs directly translate to higher net returns. Maintaining a focus on cost-effective investments will continue to support portfolio performance over time.

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