Growth-focused portfolio with strong tech exposure and a tilt towards US equities

Report created on Aug 16, 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 stocks (95%), with a minor allocation to bonds (5%), reflecting a growth-oriented strategy. The majority of the equity allocation is in broad market index funds and a dividend-focused ETF, supplemented by a specific large-cap growth ETF. This composition suggests a preference for capital appreciation while incorporating some income generation through dividends. The bond component, though minimal, offers a slight hedge against market volatility.

Growth Info

Historically, the portfolio has exhibited a Compound Annual Growth Rate (CAGR) of 13.49% with a maximum drawdown of -31.65%. These figures indicate a strong performance, albeit with significant volatility. The days contributing to 90% of returns being concentrated in 20.0 days highlight the impact of short-term gains, underscoring the importance of staying invested during market highs to capture peak returns.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio's potential outcomes vary widely. The median (50th percentile) simulation suggests a 282.9% return, indicating solid growth potential. However, the wide range between the 5th and 67th percentiles (16.5% to 425.0%) reflects considerable uncertainty, emphasizing the need for risk tolerance in growth-oriented investing.

Asset classes Info

  • Stocks
    95%
  • Bonds
    5%

The heavy emphasis on stocks over bonds aligns with the portfolio's growth profile but comes with higher volatility. The minimal bond allocation offers limited diversification benefits. Increasing the bond or alternative asset allocation could provide better risk-adjusted returns, especially during market downturns.

Sectors Info

  • Technology
    27%
  • Financials
    13%
  • Health Care
    10%
  • Industrials
    9%
  • Telecommunications
    8%
  • Consumer Discretionary
    8%
  • Consumer Staples
    7%
  • Energy
    5%
  • Consumer Discretionary
    3%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Utilities
    2%

The portfolio's sector allocation is heavily weighted towards technology, followed by financial services and healthcare. This tech-heavy focus can drive high returns but also increases susceptibility to sector-specific downturns. Diversifying across additional sectors could mitigate some of this risk while still capturing growth opportunities.

Regions Info

  • North America
    85%
  • No data
    5%
  • Europe Developed
    4%
  • Japan
    2%
  • Asia Emerging
    1%
  • Asia Developed
    1%

With 85% of assets allocated to North America, the portfolio has a strong home bias, particularly towards the US market. While this has historically been beneficial, increasing exposure to international markets could enhance diversification and potentially tap into higher growth rates in emerging markets.

Market capitalization Info

  • Mega-cap
    36%
  • Large-cap
    33%
  • Mid-cap
    19%
  • Small-cap
    5%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown shows a preference for mega and big-cap stocks, which are typically less volatile than smaller companies. However, incorporating a greater mix of medium, small, and micro-cap stocks could enhance growth prospects, albeit with added 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 may not be fully optimized for the best risk-return ratio given its heavy stock concentration and sector biases. Adjusting the asset allocation to include more diversifying assets and rebalancing towards underrepresented sectors could move the portfolio closer to the Efficient Frontier.

Dividends Info

  • FIDELITY LONG-TERM TREASURY BOND INDEX FUND INSTITUTIONAL PREMIUM CLASS 3.20%
  • FIDELITY ZERO INTERNATIONAL INDEX FUND 2.40%
  • FIDELITY ZERO TOTAL MARKET INDEX FUND 1.10%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Weighted yield (per year) 1.66%

Dividend yields contribute to the portfolio's total return, with the Schwab U.S. Dividend Equity ETF offering the highest yield. While dividends provide a steady income stream, the focus should remain on total return, balancing income generation with capital appreciation.

Ongoing product costs Info

  • FIDELITY LONG-TERM TREASURY BOND INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.03%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Weighted costs total (per year) 0.01%

The portfolio benefits from low costs, with Total Expense Ratios (TER) ranging from 0.01% to 0.06%. Low costs are crucial for long-term growth, as they directly enhance net returns. This cost efficiency is a significant strength of the portfolio.

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