This portfolio has only about 3.8 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

Moderately Diversified Growth Portfolio with High Technology Exposure and Impressive Historical Performance

Report created on Jul 30, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is composed of five ETFs, with a significant allocation to the Vanguard S&P 500 ETF at 50%, followed by the Invesco NASDAQ 100 ETF at 20%. Smaller allocations are made to the Avantis U.S. Small Cap Value ETF, VanEck Semiconductor ETF, and Vanguard Total International Stock Index Fund ETF Shares, each holding 10%. This composition indicates a strong focus on U.S. large-cap stocks, with a moderate diversification into small-cap and international markets. The portfolio aims for growth, given the heavy weighting in high-performing sectors like technology and semiconductors.

Growth Info

Historically, the portfolio has performed exceptionally well, with a compound annual growth rate (CAGR) of 16.18%. However, it has also experienced significant volatility, as indicated by a maximum drawdown of -27.64%. This suggests that while the portfolio has the potential for high returns, it also carries substantial risk. The fact that 90% of returns are made up in just 19 days highlights the importance of staying invested to capture these critical high-return periods.

Projection Info

Using a Monte Carlo simulation with 1,000 iterations, projections indicate a wide range of potential outcomes. Assuming a hypothetical initial investment, the 5th percentile shows a 140.7% return, while the median (50th percentile) projects a 909.71% return. The 67th percentile projects an even higher return of 1,354.22%. With 997 out of 1,000 simulations showing positive returns, the portfolio appears to have a high likelihood of future growth, albeit with significant variability.

Asset classes Info

  • Stocks
    100%

The portfolio is heavily skewed towards stocks, making up 99.618% of the total assets. A small fraction is held in cash (0.368%), with negligible amounts in other categories. This high concentration in equities aligns with the growth objective but also increases the portfolio's risk. Diversification into other asset classes like bonds could help mitigate this risk and provide more stability during market downturns.

Sectors Info

  • Technology
    37%
  • Financials
    11%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Industrials
    8%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation reveals a dominant exposure to technology at 37.05%, followed by financial services at 11.15% and consumer cyclicals at 10.87%. Other sectors like healthcare, industrials, and communication services also have notable allocations. While this sector distribution supports the growth objective, it leaves the portfolio vulnerable to sector-specific downturns. A more balanced sector allocation could help reduce this risk.

Regions Info

  • North America
    88%
  • Europe Developed
    5%
  • Asia Developed
    2%
  • Japan
    2%
  • Asia Emerging
    2%
  • Australasia
    1%

Geographically, the portfolio is predominantly invested in North America, which constitutes 87.63% of the total assets. Other regions like Europe Developed, Asia Developed, and Japan have minimal representation. This heavy North American focus could limit the benefits of global diversification. Allocating more assets to international markets could provide exposure to different economic cycles and reduce regional risk.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Invesco NASDAQ 100 ETF 0.70%
  • VanEck Semiconductor ETF 0.40%
  • Vanguard S&P 500 ETF 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 3.00%
  • Weighted yield (per year) 1.29%

Dividend data is not provided, but given the high allocation to growth-oriented sectors like technology and semiconductors, the portfolio is likely to have a lower dividend yield. Investors seeking regular income may need to consider adding higher-yielding assets. However, for a growth-focused portfolio, reinvesting dividends can contribute significantly to long-term capital appreciation.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco NASDAQ 100 ETF 0.15%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.11%

The portfolio's total expense ratio (TER) is 0.11%, which is relatively low and cost-effective. The Vanguard S&P 500 ETF has the lowest expense ratio at 0.03%, while the VanEck Semiconductor ETF has the highest at 0.35%. Keeping costs low is crucial for maximizing net returns over the long term. Investors should continue to monitor expense ratios and consider low-cost alternatives if available.

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