Growth-focused portfolio with strong tech exposure and moderate international diversification
Report created on Jul 23, 2025Risk profile
5/7
Diversification profile
3/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 60.00% -
QQ Invesco QQQ Trust
QQQ - US46090E1038 20.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 10.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 10.00%
The portfolio is heavily weighted towards equities, with a significant emphasis on the US market, particularly through the Vanguard S&P 500 ETF and Invesco QQQ Trust, making up 80% of the portfolio. The inclusion of the Avantis® U.S. Small Cap Value ETF and Vanguard Total International Stock Index Fund ETF Shares introduces some diversification, both in terms of market capitalization and international exposure. However, the portfolio's concentration in large-cap and tech-centric ETFs suggests a growth-oriented strategy with a higher risk and return profile.
Growth
Historically, the portfolio has demonstrated a strong Compound Annual Growth Rate (CAGR) of 17.26%, although it has also experienced significant volatility, as indicated by a maximum drawdown of -33.77%. This performance is characteristic of growth-focused portfolios, where high returns are often accompanied by substantial fluctuations. The days contributing most to the returns highlight the portfolio's sensitivity to market highs and lows, underscoring the importance of risk tolerance in such investment strategies.
Projection
Monte Carlo simulations, using historical data to project future performance, indicate a wide range of potential outcomes. With key percentiles showing a vast spread between the 5th and 67th percentiles, there's a notable probability of both substantial growth and considerable risk. It's crucial to understand that these simulations are based on past market behavior, which is not a reliable indicator of future performance.
Asset classes
- Stocks 100%
The portfolio's allocation is entirely in stocks, aligning with a high-growth investment strategy. While this asset class offers the potential for significant returns, it also comes with increased volatility and risk. Diversifying across different asset classes, such as bonds or real estate, could provide a buffer against market fluctuations and reduce overall portfolio risk.
Sectors
- Technology 32%
- Financials 14%
- Consumer Discretionary 12%
- Telecommunications 10%
- Industrials 9%
- Health Care 8%
- Consumer Staples 6%
- Energy 4%
- Basic Materials 3%
- Utilities 2%
- Real Estate 2%
The sector allocation is heavily skewed towards technology, which constitutes 32% of the portfolio. This concentration enhances growth potential but also increases susceptibility to sector-specific downturns. Financial Services, Consumer Cyclicals, and Communication Services also represent significant portions, contributing to the portfolio's aggressive growth stance. Diversifying into more defensive sectors could offer stability in turbulent markets.
Regions
- North America 90%
- Europe Developed 4%
- Asia Emerging 2%
- Japan 2%
- Asia Developed 1%
Geographic allocation is predominantly in North America (90%), with minimal exposure to international markets. This concentration in a single region, while beneficial during periods of strong US market performance, limits global diversification and increases vulnerability to regional economic downturns. Increasing investments in developed and emerging markets outside North America could enhance global exposure and potentially mitigate some region-specific risks.
Market capitalization
- Mega-cap 43%
- Large-cap 30%
- Mid-cap 15%
- Small-cap 6%
- Micro-cap 5%
The portfolio's market capitalization exposure is heavily weighted towards mega (43%) and big (30%) cap stocks, indicative of a preference for established, large-scale companies. While this can offer stability and potential for steady growth, the relatively smaller allocation to medium, small, and micro-cap stocks limits opportunities for higher returns from more volatile, high-growth companies.
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's current configuration, while growth-focused, might not be optimized on the Efficient Frontier, which seeks the best possible risk-return balance. Considering the high concentration in technology and large-cap stocks, there could be opportunities to adjust the asset allocation to achieve a more favorable risk-reward ratio without sacrificing growth potential.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.70%
- Invesco QQQ Trust 0.40%
- Vanguard S&P 500 ETF 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.25%
The portfolio's average dividend yield stands at 1.25%, with the Vanguard Total International Stock Index Fund ETF Shares offering the highest yield at 2.80%. While dividends contribute to the portfolio's total return, the focus on growth-oriented ETFs means dividend income is not the primary objective. Investors seeking regular income might consider a higher allocation to assets with more substantial dividend yields.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- Invesco QQQ Trust 0.20%
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.09%
The portfolio's total expense ratio (TER) is impressively low at 0.09%, which is beneficial for long-term growth as lower costs directly translate to higher net returns. This cost efficiency is particularly advantageous in growth-oriented portfolios, where the compounding effect can significantly enhance gains over time.
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