A highly concentrated portfolio with significant equity exposure and minimal cash holdings

Report created on Jul 18, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

This portfolio is predominantly invested in the Vanguard Total Stock Market Index Fund Admiral Shares, making up 93.5% of the allocation, with the remaining 6.5% in the iShares® 0-3 Month Treasury Bond ETF. Such a composition indicates a strong focus on equities, particularly within the U.S. market, given the fund's comprehensive coverage of the total stock market. The minimal allocation to short-term Treasury bonds serves as a slight hedge against market volatility but does not significantly diversify the risk associated with a nearly all-equity portfolio.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 15.95%, a robust figure that reflects the strong performance of the U.S. stock market over recent years. However, the maximum drawdown of -24.32% signals considerable volatility, typical of equity-heavy portfolios. The days contributing to 90% of returns being so few highlights the unpredictable nature of stock investments, where a handful of exceptional days drive most gains.

Projection Info

Monte Carlo simulations, which use historical data to forecast future outcomes, suggest a wide range of potential future values for this portfolio. With 996 out of 1,000 simulations yielding positive returns, the model predicts a median increase of 288.1% in portfolio value. However, these projections come with the caveat that past performance is not a reliable indicator of future results, especially in a portfolio with high exposure to market fluctuations.

Asset classes Info

  • Stocks
    93%
  • Cash
    7%

The asset class distribution, with 93% in stocks and the remainder in cash equivalents, underscores the portfolio's aggressive growth strategy. This allocation is typical for investors with a high risk tolerance, aiming for substantial long-term gains. However, the lack of bonds or other asset classes means there's little to cushion the impact of stock market downturns.

Sectors Info

  • Technology
    29%
  • Financials
    13%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Telecommunications
    9%
  • Industrials
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Real Estate
    2%
  • Utilities
    2%
  • Basic Materials
    2%

Sector allocation reveals a heavy emphasis on technology, financial services, and consumer cyclical sectors. This concentration in high-growth areas can offer significant upside during bull markets but also increases susceptibility to sector-specific downturns. The underrepresentation of traditionally defensive sectors like utilities and consumer defensive may further amplify volatility.

Regions Info

  • North America
    93%

With 93% of assets allocated to North America, this portfolio is heavily reliant on the performance of the U.S. economy and stock market. Such geographic concentration enhances exposure to country-specific risks, including economic downturns and policy changes, while limiting potential gains from international markets.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    29%
  • Mid-cap
    18%
  • Small-cap
    6%
  • Micro-cap
    2%

The market capitalization breakdown, favoring mega and large-cap stocks, suggests a preference for established companies. While this can mean more stability compared to smaller caps, it may also limit growth potential and diversification, as these companies often move in tandem with the overall market.

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.

Considering the Efficient Frontier, this portfolio's current allocation suggests a strong focus on maximizing returns, albeit with significant risk. Adjusting the allocation to include a broader mix of asset classes could potentially offer a better risk-return balance. However, any optimization should align with the investor's risk tolerance and investment horizon.

Dividends Info

  • iShares® 0-3 Month Treasury Bond ETF 4.50%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.90%
  • Weighted yield (per year) 1.13%

The overall dividend yield of 1.13% indicates a modest contribution to total returns from dividends. While the yield is not the primary focus of this growth-oriented portfolio, dividends can provide a steady income stream and help reduce volatility in down markets.

Ongoing product costs Info

  • iShares® 0-3 Month Treasury Bond ETF 0.07%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.04%
  • Weighted costs total (per year) 0.04%

The portfolio benefits from exceptionally low costs, with a Total Expense Ratio (TER) of just 0.04%. This efficient cost structure is crucial for maximizing long-term returns, as lower costs directly translate to higher net returns for investors.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey