A growth-focused portfolio with strong tech exposure and international diversification
Report created on Jul 21, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 55.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 30.00% -
VG Vanguard Information Technology Index Fund ETF Shares
VGT - US92204A7028 15.00%
This portfolio leans heavily towards growth, with a significant emphasis on technology and a broad international exposure. The allocation is 55% in a total stock market ETF, 30% in an international stock ETF, and 15% in a technology ETF. This structure suggests a strategy aiming for high growth potential, particularly through its tech emphasis, while still maintaining a level of global diversification through its international holdings. The portfolio's diversification is further supported by its exposure across a range of sectors and geographic regions.
Growth
The portfolio has shown a Compound Annual Growth Rate (CAGR) of 13.47%, with a maximum drawdown of -33.91%. These figures indicate a strong growth trajectory, albeit with significant volatility, as evidenced by the substantial drawdown. The days contributing to 90% of returns being concentrated in just 31 days highlights the portfolio's susceptibility to short-term fluctuations. This performance, while impressive, underscores the growth-oriented, higher-risk nature of the portfolio.
Projection
Monte Carlo simulations project a wide range of outcomes, with a median increase of 536.2% and an annualized return across all simulations of 16.14%. These projections, while optimistic, are based on historical data and should be viewed with caution. Monte Carlo analysis helps in understanding potential future volatility and returns but cannot predict the exact future, especially considering market unpredictability and external economic factors.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's assets are almost entirely in stocks (99%), with a minimal cash holding (1%). This asset class allocation aligns with its growth profile but comes with higher volatility and risk. The lack of bonds or other asset classes might limit the portfolio's ability to hedge against stock market downturns, suggesting an area for potential diversification to manage risk better.
Sectors
- Technology 36%
- Financials 15%
- Industrials 10%
- Consumer Discretionary 9%
- Health Care 8%
- Telecommunications 7%
- Consumer Staples 5%
- Basic Materials 3%
- Energy 3%
- Real Estate 2%
- Utilities 2%
With 36% in technology, followed by financial services and industrials, the sector allocation underscores the portfolio's growth orientation. The heavy tech weighting may increase volatility, as tech stocks can be sensitive to market shifts and interest rate changes. However, this concentration also offers high growth potential. Balancing this with sectors that have different economic sensitivities could provide a smoother return profile over time.
Regions
- North America 72%
- Europe Developed 12%
- Asia Emerging 5%
- Japan 5%
- Asia Developed 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
The geographic distribution shows a strong bias towards North America (72%), with meaningful allocations to developed Europe and emerging Asian markets. This spread provides a good balance between the stability of developed markets and the growth potential of emerging ones. However, the portfolio may benefit from increasing its exposure to underrepresented regions to capture broader global growth opportunities and mitigate regional risks.
Market capitalization
- Mega-cap 44%
- Large-cap 30%
- Mid-cap 17%
- Small-cap 6%
- Micro-cap 2%
The portfolio's market capitalization breakdown, with a predominant focus on mega and big-cap stocks, supports its growth and stability objectives. These companies are typically more resilient during market downturns. However, including a greater mix of mid, small, or micro-cap stocks could enhance potential returns, albeit with added 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.
Considering the Efficient Frontier, the portfolio could potentially be optimized for a better risk-return ratio by adjusting its asset allocation. While it's already positioned for growth, slight modifications could enhance returns or reduce volatility without sacrificing growth potential. This involves a strategic rebalance between asset classes, sectors, or geographic exposure, ensuring the portfolio remains aligned with the investor's risk tolerance and investment horizon.
Dividends
- Vanguard Information Technology Index Fund ETF Shares 0.50%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.58%
The dividend yield of the portfolio averages 1.58%, with the highest yield from the international stock ETF. While dividends are not the primary focus of this growth-oriented portfolio, they can provide a steady income stream and contribute to total returns, especially during market volatility. Considering the growth focus, the current yield strikes a reasonable balance between income and reinvestment opportunities.
Ongoing product costs
- Vanguard Information Technology Index Fund ETF Shares 0.10%
- 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) 0.05%
The portfolio's average Total Expense Ratio (TER) of 0.05% is impressively low, maximizing the potential for net returns. Low costs are crucial for long-term growth, as they ensure more of the portfolio's gains are retained by the investor. This cost efficiency is a strong aspect of the portfolio, supporting its growth objectives without unnecessary drag from fees.
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