Growth-oriented portfolio with a strong focus on US equities and diversified across sectors

Report created on Oct 10, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is characterized by a strong emphasis on equity, particularly within the U.S. market, complemented by a strategic allocation to international stocks for diversification. Each holding is evenly weighted at 10%, showcasing a deliberate approach to balancing exposure across various segments of the market, including small-cap value, large-cap growth, and high dividend yield stocks. This structure aims to harness growth while attempting to mitigate risk through diversification across different sectors and geographies.

Growth Info

With a historical Compound Annual Growth Rate (CAGR) of 16%, the portfolio has demonstrated robust growth. The maximum drawdown of -35.24% indicates a significant but not uncommon level of volatility for equity-focused portfolios, especially those skewed towards growth stocks. The days contributing most to returns highlight the portfolio's susceptibility to short-term market movements, underscoring the importance of a long-term investment horizon to ride out volatility.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of potential future outcomes, suggest a median growth potential of 658.9% over an unspecified period. While these projections are encouraging, it's crucial to remember that such simulations are based on past performance, which is not a reliable indicator of future results. The high percentage of simulations with positive returns reinforces the growth potential but also emphasizes the need for risk management.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's near-exclusive allocation to stocks (99%) positions it for growth but also exposes it to higher market volatility. The minimal cash holding (1%) provides limited liquidity and dampens the potential for rebalancing in market downturns. A more nuanced allocation, including bonds or other asset classes, could offer better risk-adjusted returns, especially in turbulent markets.

Sectors Info

  • Technology
    26%
  • Financials
    16%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Health Care
    8%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    5%
  • Basic Materials
    5%
  • Utilities
    2%
  • Real Estate
    2%
  • Consumer Discretionary
    1%

Sector allocation is heavily weighted towards technology and financial services, which are known for their growth potential but also for their volatility. The presence of industrials, consumer cyclicals, and healthcare provides some sectoral balance, yet the concentration in high-growth sectors may increase susceptibility to market swings. Diversifying into more defensive sectors could offer stability in downturns.

Regions Info

  • North America
    78%
  • Europe Developed
    9%
  • Japan
    6%
  • Asia Emerging
    2%
  • Asia Developed
    2%
  • Australasia
    2%
  • Africa/Middle East
    1%

With 78% of assets allocated to North America, the portfolio is heavily reliant on the performance of the U.S. market. While this focus has historically offered strong growth opportunities, it also concentrates geographic risk. Expanding exposure to developed markets in Europe and emerging markets in Asia could enhance diversification and potentially tap into new growth avenues.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    28%
  • Mid-cap
    20%
  • Small-cap
    11%
  • Micro-cap
    6%

The portfolio's market capitalization breakdown shows a balanced approach, with a tilt towards mega and big-cap stocks. This balance supports stability and growth potential but may limit exposure to the higher growth prospects often found in smaller companies. Increasing allocations to small and micro-cap stocks could introduce more growth opportunities, albeit with added risk.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    Invesco QQQ Trust
    Vanguard S&P 500 Growth Index Fund ETF Shares
    Vanguard Total World Stock Index Fund
    High correlation
  • Vanguard High Dividend Yield Index Fund ETF Shares
    Vanguard S&P 500 Value Index Fund ETF Shares
    High correlation

The high correlation among several U.S. equity ETFs suggests redundancy in the portfolio, limiting the diversification benefits. Specifically, the overlap between S&P 500-focused ETFs and broad market ETFs like the Vanguard Total Stock Market Index Fund may dilute the impact of strategic asset allocation. Streamlining these holdings could enhance portfolio efficiency without sacrificing exposure.

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 current portfolio exhibits a strong growth orientation but could benefit from optimization to reduce overlap and enhance diversification. Utilizing the Efficient Frontier concept to reallocate assets could improve the risk-return profile. This involves adjusting the portfolio to include assets that offer the highest expected return for a given level of risk, thereby potentially increasing overall efficiency.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.40%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Invesco QQQ Trust 0.40%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 Value Index Fund ETF Shares 1.80%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total World Stock Index Fund 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Vanguard High Dividend Yield Index Fund ETF Shares 2.50%
  • Weighted yield (per year) 1.65%

Dividend yields across the portfolio vary, contributing to its total yield of 1.65%. This income can provide a buffer against market volatility and contribute to total returns, especially in a lower-growth environment. However, the emphasis on growth has understandably led to a lower overall yield. Investors might consider rebalancing towards higher-dividend options for income generation, depending on their cash flow needs.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco QQQ Trust 0.20%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 Value Index Fund ETF Shares 0.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total World Stock Index Fund 0.09%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Vanguard High Dividend Yield Index Fund ETF Shares 0.06%
  • Weighted costs total (per year) 0.13%

The portfolio's total expense ratio (TER) of 0.13% is impressively low, maximizing the potential for net returns. This cost efficiency is a strong foundation for long-term growth, as lower costs directly translate to higher investment returns over time. Maintaining focus on low-cost investments will continue to be beneficial.

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