Growth-focused portfolio with a strong emphasis on US equities and diversified international exposure

Report created on Jul 24, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards equities, with 60% in a Vanguard S&P 500 ETF, reflecting a strong bias towards US large-cap stocks. The inclusion of 20% in the Vanguard Total International Stock Index Fund ETF Shares adds significant global diversification, while the 15% allocation to the Avantis® U.S. Small Cap Value ETF introduces a tilt towards value and small-cap stocks within the US. A modest 5% allocation to the Vanguard Tax-Exempt Bond Index Fund ETF Shares offers some fixed income exposure, enhancing the portfolio's diversification and potentially providing a buffer against equity market volatility. This composition suggests a growth-oriented strategy with a balanced approach to geographical diversification and risk.

Growth Info

The portfolio's historical performance, with a Compound Annual Growth Rate (CAGR) of 14.82%, is impressive, particularly when considering the maximum drawdown of -34.59%. The days contributing to 90% of returns being concentrated in just 16.0 days highlight the impact of significant market movements on performance. While past performance is a useful indicator, it's essential to remember that it does not guarantee future results. Investors should consider whether the historical volatility level and drawdowns align with their risk tolerance and investment horizon.

Projection Info

The Monte Carlo simulation, with 1,000 runs, projects a wide range of outcomes, from a 5th percentile scenario of -1.0% to a 67th percentile outcome of 418.3%, indicating a significant range of potential future portfolio values. This underscores the inherent uncertainty in all market projections and the importance of maintaining a diversified portfolio to mitigate risk. The annualized return of all simulations at 11.87% offers a realistic expectation for future growth, albeit with the caveat that simulations are based on historical data and cannot predict future market conditions.

Asset classes Info

  • Stocks
    94%
  • Bonds
    5%
  • Cash
    1%

The asset class allocation, with 94% in stocks and 5% in bonds, positions this portfolio for growth but also exposes it to higher volatility. The minimal bond allocation provides some income and may offer a hedge during stock market downturns, but its impact is limited by the portfolio's heavy equity concentration. Investors might consider whether adjusting the stock-bond ratio could better align with their risk tolerance and investment goals, especially in volatile or bear markets.

Sectors Info

  • Technology
    23%
  • Financials
    17%
  • Consumer Discretionary
    11%
  • Industrials
    10%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Energy
    5%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation shows a strong emphasis on technology, financial services, and consumer cyclicals, which are sectors often associated with growth but also with higher volatility. The presence of industrials, healthcare, and communication services adds diversification and potential for stability. However, the concentration in high-growth sectors may increase the portfolio's sensitivity to market swings, particularly in tech and consumer discretionary stocks. Diversifying further across sectors could help mitigate sector-specific risks.

Regions Info

  • North America
    76%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographical allocation underscores a significant reliance on North American equities, particularly the US, with 76% of the portfolio. While the exposure to developed Europe, emerging Asia, and other regions offers some diversification benefits, the portfolio may still be heavily influenced by US market dynamics. Expanding into underrepresented regions could provide additional diversification benefits and exposure to different economic growth drivers.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    27%
  • Mid-cap
    14%
  • Small-cap
    8%
  • Micro-cap
    8%

The market capitalization breakdown reveals a balanced approach, with a mix of mega, big, medium, small, and micro-cap stocks. This diversification can help reduce volatility and improve the risk-return profile, as different market caps tend to perform differently across economic cycles. However, the significant weight in mega and big caps reflects a tilt towards more stable, established companies, which might moderate growth potential in comparison to more aggressive small or micro-cap allocations.

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 Efficient Frontier analysis suggests there might be opportunities to optimize the portfolio for a better risk-return ratio. While the current allocation is growth-focused and diversified, adjustments could potentially offer a higher expected return for the same level of risk, or a similar return with reduced risk. This optimization process involves analyzing the trade-offs between different asset allocations to find an improved balance that aligns with the investor's objectives and risk tolerance.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Tax-Exempt Bond Index Fund ETF Shares 3.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.68%

The dividend yields from the ETFs contribute to the portfolio's total return, with a combined yield of 1.68%. While not the primary focus of a growth-oriented strategy, these dividends offer a source of passive income and can provide a cushion during market downturns. Investors might consider the role of dividends in their overall return expectations and whether a higher yield allocation could support their income needs or reinvestment strategies.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Tax-Exempt Bond Index Fund ETF Shares 0.05%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.07%

The portfolio's total expense ratio (TER) of 0.07% is impressively low, which is beneficial for long-term growth as costs can significantly erode returns over time. The low costs are primarily due to the efficient structure of the chosen ETFs. Keeping costs minimal is crucial for enhancing net returns, and this portfolio exemplifies a cost-effective investment strategy.

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