Growth-oriented portfolio with a strong focus on technology and healthcare sectors

Report created on Jun 2, 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 heavily weighted towards ETFs, with a significant focus on the S&P 500, Total Stock Market, and sector-specific funds like Information Technology and Healthcare. This composition indicates a preference for broad market exposure complemented by targeted sector bets. The allocation towards ETFs simplifies management and diversification but may overlap, particularly between broad market and sector-specific funds.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 14.79%, with a maximum drawdown of -34.16%. These figures suggest that the portfolio has experienced substantial growth but not without significant volatility. The days contributing to 90% of returns being concentrated in just 27 days highlights the impact of high-performing days on overall performance, underscoring the importance of staying invested through market cycles for growth-oriented investors.

Projection Info

Monte Carlo simulations, which use historical data to project future performance, suggest a wide range of outcomes for this portfolio. The median projection indicates a potential for significant growth, but the spread between the 5th and 67th percentiles underscores the uncertainty inherent in these projections. While useful for planning, these simulations are based on past performance, which is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    100%

The portfolio is exclusively invested in stocks via ETFs, showing a strong growth orientation but lacking in bonds or other asset classes that could provide income or reduce volatility. This singular focus increases risk, especially during market downturns. Diversifying across different asset classes can help mitigate this risk while still allowing for growth.

Sectors Info

  • Technology
    31%
  • Health Care
    15%
  • Consumer Discretionary
    11%
  • Financials
    11%
  • Industrials
    9%
  • Consumer Staples
    8%
  • Telecommunications
    4%
  • Utilities
    4%
  • Energy
    3%
  • Real Estate
    3%
  • Basic Materials
    2%

The technology and healthcare sectors dominate the portfolio, reflecting a bet on industries with high growth potential. However, this concentration increases exposure to sector-specific risks. Broadening the sectoral allocation could reduce volatility without significantly compromising growth potential, especially by increasing investments in underrepresented sectors like utilities or consumer staples, which tend to be more stable.

Regions Info

  • North America
    96%
  • Europe Developed
    2%
  • Japan
    1%
  • Asia Developed
    1%

With 96% of assets in North America, the portfolio's geographic exposure is highly concentrated. This concentration risks magnifying the impact of regional economic downturns. Expanding into more international ETFs, particularly in developed and emerging markets outside North America, could enhance diversification and access to global growth opportunities.

Market capitalization Info

  • Mega-cap
    29%
  • Large-cap
    27%
  • Mid-cap
    25%
  • Small-cap
    13%
  • Micro-cap
    5%

The portfolio spans mega to micro-cap stocks, with a balanced exposure across different market capitalizations. This diversification helps spread risk and tap into the growth potential of smaller companies while relying on the stability of larger firms. However, the emphasis on larger companies could be balanced further by increasing the allocation to small and micro-cap ETFs, which often offer higher growth potential.

Redundant positions Info

  • Schwab U.S. Dividend Equity ETF
    iShares Core Dividend Growth ETF
    Vanguard Dividend Appreciation Index Fund ETF Shares
    Vanguard S&P Small-Cap 600 Index Fund ETF Shares
    iShares Core S&P Mid-Cap ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    Vanguard S&P 500 ETF
    Vanguard Mid-Cap Index Fund ETF Shares
    Vanguard Small-Cap Index Fund ETF Shares
    iShares Core S&P Small-Cap ETF
    Schwab U.S. Small-Cap ETF
    High correlation
  • Vanguard Information Technology Index Fund ETF Shares
    iShares Morningstar Growth ETF
    High correlation

The portfolio contains highly correlated assets, particularly among dividend-focused ETFs and broad market funds. This correlation indicates redundancy, reducing the effectiveness of diversification. Identifying and reducing holdings in overlapping ETFs can enhance portfolio efficiency by eliminating redundancies and better spreading 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.

The portfolio could be optimized by addressing the high correlation among assets, which currently limits diversification benefits. Using the Efficient Frontier model could help identify an allocation that offers a better risk-return trade-off, focusing on reducing overlap and enhancing the portfolio's overall efficiency.

Dividends Info

  • iShares Core Dividend Growth ETF 2.20%
  • Franklin International Core Dividend Tilt Index ETF 3.80%
  • iShares Core S&P Mid-Cap ETF 1.40%
  • iShares Core S&P Small-Cap ETF 2.20%
  • iShares Morningstar Growth ETF 0.50%
  • iShares Morningstar Mid-Cap Growth ETF 0.70%
  • iShares Morningstar Small-Cap Growth ETF 0.90%
  • Schwab U.S. Small-Cap ETF 1.60%
  • Schwab U.S. Dividend Equity ETF 4.00%
  • Schwab International Equity ETF 2.80%
  • iShares Semiconductor ETF 0.70%
  • Vanguard Small-Cap Index Fund ETF Shares 1.50%
  • Vanguard Consumer Discretionary Index Fund ETF Shares 0.80%
  • Vanguard Consumer Staples Index Fund ETF Shares 2.30%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard Health Care Index Fund ETF Shares 1.60%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 1.80%
  • Vanguard S&P Small-Cap 600 Index Fund ETF Shares 1.60%
  • Vanguard Mid-Cap Index Fund ETF Shares 1.50%
  • Vanguard S&P 500 ETF 1.30%
  • Vanguard Utilities Index Fund ETF Shares 2.90%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Weighted yield (per year) 1.45%

The portfolio's dividend yield stands at 1.45%, contributing to total returns. While not the focus, dividends offer a source of income and can provide a cushion during market downturns. For a growth-oriented investor, this yield is reasonable, but there could be room to optimize for higher income without significantly altering the portfolio's growth trajectory, particularly by increasing allocations to higher-yielding ETFs.

Ongoing product costs Info

  • iShares Core Dividend Growth ETF 0.08%
  • Franklin International Core Dividend Tilt Index ETF 0.09%
  • iShares Core S&P Mid-Cap ETF 0.05%
  • iShares Core S&P Small-Cap ETF 0.06%
  • iShares Morningstar Growth ETF 0.04%
  • iShares Morningstar Mid-Cap Growth ETF 0.06%
  • iShares Morningstar Small-Cap Growth ETF 0.06%
  • Schwab U.S. Small-Cap ETF 0.04%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab International Equity ETF 0.06%
  • iShares Semiconductor ETF 0.35%
  • Vanguard Small-Cap Index Fund ETF Shares 0.05%
  • Vanguard Consumer Discretionary Index Fund ETF Shares 0.10%
  • Vanguard Consumer Staples Index Fund ETF Shares 0.10%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Health Care Index Fund ETF Shares 0.10%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 0.06%
  • Vanguard S&P Small-Cap 600 Index Fund ETF Shares 0.10%
  • Vanguard Mid-Cap Index Fund ETF Shares 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Utilities Index Fund ETF Shares 0.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.08%

With a Total Expense Ratio (TER) averaging around 0.08%, the portfolio is cost-efficient, minimizing the drag on returns. Lower costs are crucial for long-term growth, as they compound over time. The selection of low-cost ETFs is commendable and aligns with best practices for maximizing investment returns.

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