Growth-focused portfolio with high US market concentration and low international exposure

Report created on Aug 18, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards the US stock market, with a significant allocation to the Vanguard S&P 500 ETF and the Vanguard Total Stock Market Index Fund ETF Shares, comprising 94% of the total. The remaining 6% is allocated to the Vanguard Total International Stock Index Fund ETF Shares, indicating minimal international exposure. The concentration in large-cap US equities suggests a growth-oriented strategy but with limited diversification across global markets.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 14.78%, with a maximum drawdown of -34.26%. These figures suggest strong past performance but also highlight potential volatility and risk, as evidenced by the significant drawdown. The days contributing most to returns indicate that a small number of high-performing days drive a large portion of the portfolio's gains, a common characteristic in equity-focused strategies.

Projection Info

A Monte Carlo simulation, projecting future performance based on historical data, suggests a wide range of outcomes with a median increase of 417.4%. While simulations show a high likelihood of positive returns, it's important to remember that these projections are based on past trends, which do not guarantee future results. The simulation's reliance on historical data may not account for unforeseen market shifts or global economic changes.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, with no allocation to cash, bonds, or alternative investments. This allocation supports a high-growth strategy but also increases susceptibility to market volatility. Diversifying across different asset classes could provide a buffer during stock market downturns, potentially smoothing out returns over time.

Sectors Info

  • Technology
    32%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Telecommunications
    9%
  • Industrials
    9%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    2%

Sector allocation is heavily weighted towards technology, financial services, and consumer cyclicals, which are sectors often associated with higher growth but also higher volatility. This concentration may increase the portfolio's sensitivity to sector-specific risks. Broadening the sectoral exposure could mitigate this risk and provide more stability.

Regions Info

  • North America
    94%
  • Europe Developed
    3%
  • Asia Emerging
    1%
  • Japan
    1%
  • Asia Developed
    1%

Geographic allocation is predominantly in North America (94%), with very limited exposure to developed Europe, emerging Asia, and Japan. This geographic concentration aligns with the portfolio's growth profile but limits global diversification benefits. Expanding into more international markets could reduce geographic risk and tap into growth opportunities outside the US.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    33%
  • Mid-cap
    18%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio's market capitalization exposure leans heavily towards mega and large-cap stocks, which tend to be more stable than smaller companies but may offer lower growth potential in the long term. Including a broader mix of medium, small, and micro-cap stocks could enhance growth prospects and diversification.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The Vanguard S&P 500 ETF and the Vanguard Total Stock Market Index Fund ETF Shares are highly correlated, which limits the diversification benefits within the portfolio. Considering assets with lower correlation could improve the portfolio's overall risk-adjusted performance by reducing volatility without necessarily sacrificing 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.

The current portfolio could be optimized by addressing the overlap between the Vanguard S&P 500 ETF and the Vanguard Total Stock Market Index Fund ETF Shares. Reducing duplication and introducing assets with lower correlation could improve diversification and potentially enhance risk-adjusted returns, moving the portfolio closer to the Efficient Frontier.

Dividends Info

  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.29%

The portfolio's dividend yield stands at an average of 1.29%, with the international ETF offering a higher yield. While dividends contribute to total returns, the focus on growth equities means dividend income is a smaller portion of the portfolio's performance. Investors seeking income might consider increasing allocations to higher-yielding assets.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • 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) 0.03%

With exceptionally low costs (Total TER of 0.03%), the portfolio is positioned to maximize returns by minimizing expense drag. This efficient cost structure is a strong foundation for compounding growth over time. Keeping costs low is a proven strategy for enhancing long-term investment outcomes.

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