A growth-focused portfolio with a strong emphasis on technology and U.S. equities
Report created on Nov 8, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 50.00% -
VU Vanguard Growth Index Fund ETF Shares
VUG - US9229087369 30.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00%
The portfolio is predominantly composed of ETFs, with a significant allocation to the Vanguard S&P 500 ETF (50%), the Vanguard Growth Index Fund ETF Shares (30%), and the Vanguard Total International Stock Index Fund ETF Shares (20%). This structure suggests a growth-oriented strategy with a bias towards U.S. equities, given the heavy weighting in the S&P 500 and growth index funds. The international component adds a layer of global diversification, albeit with a modest allocation.
Growth
Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 14.86%, with a maximum drawdown of -33.18%. Notably, a small number of days (34) have contributed to 90% of the returns, indicating that performance is heavily reliant on short, significant market upswings. This pattern underscores the portfolio's growth orientation but also highlights its susceptibility to market volatility.
Projection
Monte Carlo simulations, based on 1,000 iterations, suggest a wide range of potential outcomes, with the median projection at a 476% increase. The vast majority of simulations (994 out of 1,000) resulted in positive returns, reinforcing the portfolio's strong growth potential. However, the wide spread between the 5th and 67th percentiles (76.8% to 677.6%) illustrates the inherent uncertainty and risk in projecting future returns.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's asset allocation is heavily skewed towards stocks (99%), with a nominal position in cash (1%). This allocation aligns with the portfolio's growth profile but comes with higher volatility and risk compared to more diversified asset class allocations. The concentration in equities underscores the need for investors to be comfortable with significant market fluctuations.
Sectors
- Technology 36%
- Financials 13%
- Consumer Discretionary 12%
- Telecommunications 11%
- Industrials 8%
- Health Care 8%
- Consumer Staples 4%
- Energy 2%
- Basic Materials 2%
- Real Estate 2%
- Utilities 2%
The sectoral allocation reveals a strong emphasis on technology (36%), followed by financial services (13%) and consumer cyclicals (12%). This tech-heavy focus is typical of growth-oriented portfolios, aiming to capitalize on the higher return potential of the tech sector. However, it also increases susceptibility to sector-specific downturns, such as those driven by regulatory changes or shifts in consumer behavior.
Regions
- North America 82%
- Europe Developed 8%
- Asia Emerging 3%
- Japan 3%
- Asia Developed 2%
- Australasia 1%
- Africa/Middle East 1%
Geographically, the portfolio is heavily weighted towards North America (82%), with limited exposure to developed Europe (8%) and emerging Asian markets (3%). This concentration in the U.S. market leverages its historical strength and innovation-driven sectors but may limit global diversification benefits, particularly in periods when international markets outperform the U.S.
Market capitalization
- Mega-cap 52%
- Large-cap 30%
- Mid-cap 15%
- Small-cap 1%
The exposure by market capitalization shows a preference for mega (52%) and big (30%) cap stocks, which is consistent with the portfolio's growth and stability objectives. These companies are typically more resilient during market downturns but may offer lower growth potential compared to smaller caps. The minimal exposure to small (1%) and micro (0%) caps suggests a conservative approach to risk within the growth spectrum.
Redundant positions
-
High correlationVanguard S&P 500 ETFVanguard Growth Index Fund ETF Shares
The high correlation between the Vanguard S&P 500 ETF and the Vanguard Growth Index Fund ETF Shares indicates overlapping investments that may not provide the diversification benefits expected from holding multiple assets. This redundancy could amplify risk during market downturns, as both assets are likely to move in tandem.
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's risk-return profile could be enhanced by addressing the high correlation between certain assets. Optimizing the portfolio along the Efficient Frontier could involve diversifying into assets or sectors with lower correlation, thus potentially improving the risk-adjusted return without necessarily increasing the portfolio's overall risk level.
Dividends
- Vanguard S&P 500 ETF 1.10%
- Vanguard Growth Index Fund ETF Shares 0.40%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.23%
The dividend yields from the ETFs contribute to the portfolio's total yield of 1.23%, with the Vanguard Total International Stock Index Fund ETF Shares offering the highest yield at 2.80%. While dividends are not the primary focus of this growth-oriented portfolio, they provide a supplementary income stream and a potential buffer during market volatility.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Vanguard Growth Index Fund ETF Shares 0.04%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.04%
With an overall portfolio cost (TotalTER) of 0.04%, the portfolio benefits from low expense ratios, supporting better long-term performance. Low costs are crucial for growth portfolios, as they ensure that a higher portion of the returns is retained by the investor, compounding over time.
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