A growth-focused portfolio with a blend of US and international exposure

Report created on May 29, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is strategically divided among three Vanguard ETFs, emphasizing large-cap US equities (50%), small-cap value stocks (25%), and international stocks (25%). This structure aims to balance the growth potential of large-cap stocks with the value-driven and diversification benefits of small-cap and international equities. The allocation reflects a growth-oriented approach, leveraging the stability and performance history of large companies while tapping into the higher potential returns and diversification of smaller companies and global markets.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 11.13% and a maximum drawdown of -36.33%, the portfolio demonstrates robust growth with significant volatility. The days contributing to 90% of returns highlight the impact of short-term market movements on performance. Comparing this to benchmark indices could provide context, but the historical performance suggests a strong growth trajectory, albeit with periods of sharp declines, typical of growth-focused investments.

Projection Info

The Monte Carlo simulation, using 1,000 iterations, forecasts a wide range of outcomes, with a median increase of 241.2%. This method, which projects future performance based on historical data, underscores the uncertainty in predicting market movements. While 95% of simulations returned positive outcomes, the variance between the 5th and 67th percentiles illustrates potential volatility. Investors should consider these projections as one of many tools, acknowledging the inherent limitations of relying solely on past data for future predictions.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's nearly exclusive allocation to stocks (99%) underscores its growth orientation, with a minimal cash holding (1%) for liquidity. This heavy equity concentration aligns with the portfolio's risk score and growth objectives but also increases exposure to market volatility. Diversifying across more asset classes could potentially reduce risk without significantly compromising growth potential.

Sectors Info

  • Technology
    21%
  • Financials
    18%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Real Estate
    4%
  • Basic Materials
    4%
  • Energy
    4%
  • Utilities
    3%

The sectoral allocation reveals a strong emphasis on technology and financial services, which are sectors often associated with high growth but also higher volatility. The presence in industrials, consumer cyclicals, and healthcare suggests a balanced approach to capturing growth across different economic cycles. However, the concentration in high-volatility sectors like technology may increase the portfolio's sensitivity to market swings.

Regions Info

  • North America
    76%
  • Europe Developed
    10%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation heavily favors North America (76%), with meaningful exposure to developed Europe and emerging Asian markets. This distribution supports diversification across different economic regions, though the portfolio may benefit from increased exposure to emerging and frontier markets, which could offer higher growth opportunities albeit with additional risk.

Market capitalization Info

  • Mega-cap
    35%
  • Large-cap
    25%
  • Mid-cap
    20%
  • Small-cap
    16%
  • Micro-cap
    3%

The market capitalization breakdown, with a tilt towards mega and big-cap stocks, aligns with the portfolio's growth and risk profile. Medium, small, and micro-cap stocks, while riskier, offer diversification and potential for outsized returns. Adjusting this balance could enhance growth prospects and risk management, tailored to the investor's risk tolerance.

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 appears to be positioned for growth within its risk profile. However, there's always room to enhance the risk-return ratio through minor adjustments in asset allocation. Balancing growth potential with risk management through diversification across more asset classes or sectors could further optimize the portfolio's performance.

Dividends Info

  • Vanguard Small-Cap Value Index Fund ETF Shares 2.20%
  • Vanguard S&P 500 ETF 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.92%

The dividend yields, ranging from 1.30% to 2.90%, contribute to the portfolio's total return, offering a balance between growth and income. This diversified approach to yield generation, particularly from international equities, enhances the portfolio's income potential while maintaining a focus on growth.

Ongoing product costs Info

  • Vanguard Small-Cap Value Index Fund ETF Shares 0.07%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

The portfolio's total expense ratio (TER) of 0.04% is impressively low, maximizing the potential for net returns. Keeping costs low is crucial for long-term growth, as even small differences in fees can have a significant impact on portfolio performance over time. This cost efficiency is a strong aspect of the portfolio's construction.

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