Growth-oriented portfolio with a strong focus on US equities and technology sector

Report created on Jul 8, 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 predominantly invested in US equities, with a significant 60% allocation to the Vanguard Total Stock Market Index Fund ETF Shares, and 20% in the SPDR® Portfolio S&P 500 ETF. These choices reflect a strong bias towards growth, given their comprehensive exposure to the US stock market. The inclusion of specialized ETFs, such as the VanEck Semiconductor ETF, underscores a pronounced tilt towards the technology sector. This structure suggests an aggressive growth strategy, albeit with moderate diversification across sectors and geographies.

Growth Info

The portfolio has demonstrated robust historical performance, with a Compound Annual Growth Rate (CAGR) of 16.93%. This impressive growth rate, however, comes with a notable risk, as evidenced by a maximum drawdown of -35.14%. Such volatility is typical for growth-oriented portfolios heavily invested in equities, especially in sectors like technology that can experience significant price swings. The days contributing most to returns highlight the portfolio's dependence on short-term gains, which can be both an opportunity and a risk factor.

Projection Info

Monte Carlo simulations, based on historical data, project a wide range of outcomes for this portfolio. With the majority of simulations indicating positive returns and a median projected increase of 788.6%, the potential for substantial growth is evident. However, it's important to note that such simulations rely on past performance, which is not a guaranteed predictor of future results. The wide spread between the 5th and 67th percentiles also underscores the inherent uncertainty and risk in such growth-focused investments.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely allocated to stocks (99%), with a minimal cash holding (1%). This allocation aligns with the portfolio's growth profile but lacks the balance of fixed-income assets that could provide stability during market downturns. The absence of alternative asset classes, such as real estate or commodities, further limits diversification. For investors seeking growth, this asset class distribution is appropriate, though it carries higher volatility and risk.

Sectors Info

  • Technology
    32%
  • Financials
    15%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Industrials
    9%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Utilities
    2%

With 32% allocated to technology, followed by significant investments in financial services and consumer cyclicals, the portfolio is positioned to benefit from growth in these dynamic sectors. However, this concentration increases vulnerability to sector-specific risks. The diversification across other sectors like healthcare and industrials is commendable, but the heavy emphasis on technology suggests a need for caution, especially in volatile market conditions.

Regions Info

  • North America
    92%
  • Europe Developed
    3%
  • Asia Developed
    1%
  • Asia Emerging
    1%
  • Japan
    1%

Geographic allocation is heavily skewed towards North America (92%), with minimal exposure to international markets. This concentration in developed markets, particularly the US, can offer stability and access to some of the world's largest companies. However, it also exposes the portfolio to regional economic and political risks, potentially missing out on growth opportunities in emerging markets.

Market capitalization Info

  • Mega-cap
    40%
  • Large-cap
    30%
  • Mid-cap
    17%
  • Small-cap
    7%
  • Micro-cap
    5%

The portfolio's market capitalization breakdown shows a preference for large-cap (mega and big) companies, which constitute 70% of the allocation. This preference supports the portfolio's growth and stability objectives, as these companies are typically more established and less volatile. However, the inclusion of small and micro-cap stocks, though minimal, introduces additional growth potential and risk.

Redundant positions Info

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

The high correlation between the Vanguard Total Stock Market Index Fund ETF Shares and the SPDR® Portfolio S&P 500 ETF indicates overlapping investments, which may not contribute to diversification. Reducing this overlap could enhance the portfolio's risk-adjusted returns by ensuring a broader exposure across different assets without sacrificing growth potential.

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.

Optimizing the portfolio involves addressing the high correlation between certain ETFs to improve diversification. By reallocating funds from overlapping assets to underrepresented sectors or geographies, the portfolio could achieve a better risk-return profile. The Efficient Frontier analysis could further refine this approach by identifying the optimal asset mix for the desired level of risk.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • VanEck Semiconductor ETF 0.40%
  • SPDR® Portfolio S&P 500 ETF 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.30%

The portfolio's dividend yield stands at 1.30%, with the highest yield from the Vanguard Total International Stock Index Fund ETF Shares. While dividends contribute to the portfolio's total return, the focus on growth-oriented ETFs means dividend income is not a primary objective. For investors seeking income, a higher allocation to assets with stable and higher dividend yields might be considered.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • VanEck Semiconductor ETF 0.35%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • 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) 0.06%

The portfolio's overall cost, represented by a Total Expense Ratio (TER) of 0.06%, is impressively low, enhancing its long-term return potential. This cost efficiency is crucial for maximizing growth, as lower costs translate directly into higher net returns. The emphasis on low-cost ETFs is a strategic choice that supports the portfolio's growth objectives while minimizing the drag on performance.

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