A growth-focused portfolio with high diversification across global equities and minimal bond exposure

Report created on Jul 18, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards equities, with a significant portion in both U.S. and international stocks, complemented by a modest allocation to bonds. The Vanguard Total Stock Market Index Fund ETF Shares and Vanguard Total International Stock Index Fund ETF Shares together make up over 90% of the portfolio, indicating a strong emphasis on stock market investments. The allocation to bonds, through the Vanguard Intermediate-Term Bond Index Fund ETF Shares, Vanguard Long-Term Treasury Index Fund ETF Shares, and Fidelity Salem Street Trust - International Bond Index Fund, is minimal, suggesting a growth-oriented strategy with a higher risk tolerance.

Growth Info

The portfolio has shown a Compound Annual Growth Rate (CAGR) of 13.26%, despite experiencing a maximum drawdown of -32.15%. This performance, particularly the high CAGR, suggests that the portfolio has historically provided strong returns, though not without significant volatility. The days that make up 90% of returns being concentrated in just 16.0 days indicates that much of the portfolio’s gains can be attributed to very short periods of exceptional performance, underscoring the importance of staying invested through market cycles.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of potential outcomes. The 50th percentile outcome suggests a 69.1% return, while the 5th percentile indicates a potential loss of 37.6%. These projections underscore the inherent uncertainties in investing and the importance of maintaining a long-term perspective, especially given the portfolio's growth orientation.

Asset classes Info

  • Stocks
    92%
  • Bonds
    7%
  • Cash
    1%

The portfolio's asset allocation leans heavily towards stocks, with 92% in equities and only 7% in bonds. This composition reflects a growth-focused strategy but also entails higher volatility and risk. The minimal bond allocation offers limited cushion against stock market downturns, highlighting the portfolio's aggressive stance towards capital appreciation over income or stability.

Sectors Info

  • Technology
    23%
  • Financials
    16%
  • Industrials
    11%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Basic Materials
    3%
  • Energy
    3%
  • Real Estate
    3%
  • Utilities
    2%

With technology and financial services sectors constituting nearly 40% of the portfolio, there's a clear tilt towards industries that can offer high growth but may also be more volatile. While this sectoral allocation can drive substantial returns during bullish market periods, it may also expose the portfolio to significant downturns during tech or financial market corrections. Diversifying across more sectors could help mitigate this risk.

Regions Info

  • North America
    63%
  • Europe Developed
    13%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    2%
  • No data
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic distribution shows a strong bias towards North American equities, which comprise 63% of the portfolio. While this concentration may have benefited from the robust performance of the U.S. stock market, it also introduces geographic risk, potentially limiting the benefits of global diversification. Expanding exposure to underrepresented regions could enhance risk-adjusted returns.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    29%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    1%

The portfolio's emphasis on mega and big cap stocks, which together account for 68%, suggests a preference for established, large companies likely to offer stability and steady growth. However, this focus may limit exposure to the potentially higher growth rates of smaller companies, suggesting an opportunity to diversify further across market capitalizations for enhanced returns.

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.

Regarding risk-return optimization, the portfolio appears well-positioned on the Efficient Frontier based on its current composition, suggesting an effective balance between risk and potential returns. However, the reliance on historical data and simulations means there's no guarantee of future performance. Regular reviews and adjustments in response to changing market conditions and personal financial goals are essential for maintaining this balance.

Dividends Info

  • Vanguard Intermediate-Term Bond Index Fund ETF Shares 3.90%
  • Fidelity Salem Street Trust - International Bond Index Fund 2.70%
  • Vanguard Long-Term Treasury Index Fund ETF Shares 4.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.90%

The portfolio's overall dividend yield of 1.90% is relatively modest, reflecting its growth orientation over income generation. While the bond components provide higher yields, their small proportion limits their impact on the portfolio's overall income. Investors seeking income in addition to growth might consider increasing the allocation to higher-yielding assets.

Ongoing product costs Info

  • Vanguard Intermediate-Term Bond Index Fund ETF Shares 0.04%
  • Fidelity Salem Street Trust - International Bond Index Fund 0.06%
  • Vanguard Long-Term Treasury Index Fund ETF Shares 0.04%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

The portfolio benefits from low costs, with a Total Expense Ratio (TER) of 0.04%. This efficiency is crucial for long-term growth, as lower costs directly translate to higher net returns. The selection of low-cost funds is commendable and should be maintained to continue maximizing investment returns.

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