A growth-focused portfolio with a strong tilt towards technology and international exposure

Report created on Aug 2, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards ETFs, with a 50% allocation in international stocks, 30% in the S&P 500, and 20% in technology. This mix underscores a growth-oriented approach, leveraging broad market exposure alongside a significant bet on the tech sector. The diversification across major geographic regions and sectors is commendable, though the heavy tilt towards technology indicates a higher risk and reward profile. The portfolio's construction aligns with a growth strategy, aiming to capitalize on global equity markets' potential while accepting above-average volatility.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.57%, with a maximum drawdown of -32.98%. These figures suggest strong performance, albeit with significant volatility, as evidenced by the steep drawdown. The days contributing to 90% of returns being concentrated in just 30 days indicate that the portfolio's gains are heavily reliant on short, sharp market movements, typical of growth-focused investments. This performance pattern is consistent with the high risk-reward profile of the chosen asset allocation.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 553.3% and a notable 992 out of 1,000 simulations yielding positive returns. This suggests a strong likelihood of positive future performance, but with substantial variability. The projection underscores the portfolio's growth orientation but also highlights the inherent uncertainty and risk of such an aggressive strategy. Investors should interpret these simulations as indicative, not guaranteed, as they rely on historical data that may not predict future market conditions accurately.

Asset classes Info

  • Stocks
    98%
  • Cash
    2%

The portfolio's asset allocation is almost entirely in stocks (98%), with a minimal cash holding (2%). This allocation is typical for growth-focused portfolios aiming for higher returns, albeit at the expense of higher volatility and risk. The negligible allocation to cash and absence of bonds or other asset classes limit the portfolio's ability to hedge against stock market downturns. Investors should consider their comfort with the associated risk levels and the potential impact of market fluctuations on their investment.

Sectors Info

  • Technology
    37%
  • Financials
    16%
  • Industrials
    10%
  • Consumer Discretionary
    8%
  • Health Care
    7%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Basic Materials
    4%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%

With 37% of the portfolio in technology, followed by significant allocations to financial services and industrials, the sector distribution reflects a strong conviction in the growth potential of these areas. However, the heavy emphasis on technology makes the portfolio more susceptible to sector-specific risks and volatility. While the diversification across other sectors like healthcare and consumer cyclicals provides some balance, the concentration in technology should be monitored closely, especially in market environments unfavorable to tech stocks.

Regions Info

  • North America
    54%
  • Europe Developed
    20%
  • Asia Emerging
    8%
  • Japan
    8%
  • Asia Developed
    5%
  • Australasia
    2%
  • Africa/Middle East
    2%
  • Latin America
    1%

The geographic allocation shows a balanced approach, with a majority in North America (54%) and substantial exposure to developed Europe (20%) and emerging Asian markets (8%). This global diversification helps mitigate the risk of regional economic downturns but introduces currency and geopolitical risks. The underrepresentation of Latin America and Africa/Middle East suggests potential areas for further diversification to capture global growth opportunities more fully.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    31%
  • Mid-cap
    16%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's focus on mega (47%) and big (31%) cap stocks aligns with its growth and stability objectives, leveraging the potential of large, established companies. However, the relatively smaller allocation to medium, small, and micro-cap stocks (21% combined) indicates a missed opportunity for higher growth potential albeit with increased risk. Considering a more balanced market cap distribution could enhance returns while still aligning with the portfolio's growth strategy.

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 portfolio appears well-positioned on the Efficient Frontier, indicating an optimal risk-return balance based on current allocation. However, given the heavy tilt towards technology and large-cap stocks, there may be room for further optimization by diversifying into other sectors and market caps. This would not only potentially improve the risk-return ratio but also reduce dependency on specific market segments. Regularly reviewing and adjusting the portfolio in response to changing market conditions and personal financial goals is advisable.

Dividends Info

  • SPDR S&P 500 ETF Trust 1.10%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.88%

The portfolio's dividend yield of 1.88% reflects a moderate income component, primarily driven by the high yield of the international stock ETF. While the focus is clearly on growth rather than income, dividends contribute to total returns and provide a slight cushion during market downturns. Investors might consider the role of dividends in their overall investment strategy, balancing the pursuit of capital gains with the desire for income.

Ongoing product costs Info

  • SPDR S&P 500 ETF Trust 0.10%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.08%

With a total expense ratio (TER) of 0.08%, the portfolio benefits from low costs, which is crucial for enhancing long-term returns. The emphasis on low-cost ETFs is a prudent strategy, minimizing the drag on performance attributed to fees. This approach is particularly beneficial in a growth-oriented portfolio, where compounding plays a significant role in wealth accumulation. Investors should continue to monitor costs, as even small differences in fees can have a substantial impact over time.

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