A growth-oriented portfolio with a strong focus on US stocks and ESG principles

Report created on Jun 13, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio predominantly invests in equity ETFs, with a significant 60% allocated to a broad US stock market ETF and 20% to an ESG-focused US stock ETF. Bonds represent 10%, providing some risk mitigation, while international stocks also account for 10%, offering a modest degree of global exposure. The heavy tilt towards US equities reflects a growth-focused strategy, but it also indicates a relatively concentrated geographic risk profile. Comparatively, the bond and international allocations are minimal, suggesting a higher appetite for risk in pursuit of growth.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 12.27%, with a maximum drawdown of -31.27%. These figures suggest a strong performance with a relatively high level of volatility, as indicated by the significant drawdown. The fact that 90% of returns came from just 16 days highlights the portfolio's reliance on a few high-performing days, underscoring the inherent risks and the potential for high rewards in a growth-oriented strategy.

Projection Info

Monte Carlo simulations, which use historical data to project potential outcomes, show a wide range of future performance scenarios for this portfolio. With 969 out of 1,000 simulations yielding positive returns, the median projected increase is a robust 229.7%. However, the wide range between the 5th percentile (9.0%) and the 67th percentile (348.4%) underscores the uncertainty and risk associated with this growth-focused approach.

Asset classes Info

  • Stocks
    89%
  • Bonds
    10%
  • Cash
    1%

The portfolio's asset class distribution, with 89% in stocks and 10% in bonds, aligns with its growth profile. This high equity allocation is designed for capital appreciation, while the bond component provides a cushion against stock market volatility. However, the minimal cash and lack of alternative investments (such as real estate or commodities) may limit opportunities for further diversification and risk management.

Sectors Info

  • Technology
    26%
  • Financials
    14%
  • Health Care
    10%
  • Consumer Discretionary
    10%
  • Telecommunications
    8%
  • Industrials
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Real Estate
    3%
  • Basic Materials
    2%
  • Utilities
    2%

Sectoral allocation shows a strong preference for technology, financial services, and healthcare, which are sectors often associated with higher growth potential. However, this concentration increases susceptibility to sector-specific downturns. The under-representation of traditionally defensive sectors like utilities and consumer staples may also amplify volatility during market corrections or economic downturns.

Regions Info

  • North America
    80%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%

The portfolio's geographic allocation is heavily skewed towards North America (80%), with minimal exposure to emerging markets and other developed regions. This concentration in the US market can offer substantial growth opportunities but also exposes the portfolio to regional economic and political risks. Diversifying more into international and emerging markets could provide additional growth avenues and reduce geographic risk.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    27%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    2%

The market capitalization breakdown, with a focus on mega and big-cap stocks (65% combined), suggests a preference for established, large companies likely to offer stability and steady growth. However, the relatively lower allocation to small and micro-cap stocks limits exposure to potentially higher-growth, albeit riskier, segments of the market.

Redundant positions Info

  • Vanguard ESG US Stock
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation between the Vanguard ESG US Stock ETF and the Vanguard Total Stock Market Index Fund ETF indicates overlapping holdings, which can limit diversification benefits. Diversification is a key risk management tool, and reducing asset overlap can enhance the portfolio's ability to withstand market volatility without significantly compromising its growth potential.

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.

Optimizing the portfolio involves addressing the high correlation between certain assets to enhance diversification. By reallocating funds from overlapping ETFs to under-represented asset classes or sectors, the portfolio could achieve a better risk-return profile. This approach aligns with the Efficient Frontier concept, aiming to maximize returns for a given level of risk by optimizing asset allocation.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Vanguard ESG US Stock 1.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.66%

The portfolio's dividend yield stands at 1.66%, reflecting a moderate income component alongside its growth orientation. While the focus is clearly on capital appreciation, dividends contribute to total return and provide a passive income stream, which can be particularly beneficial during market downturns or for investors seeking periodic income.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Vanguard ESG US Stock 0.09%
  • 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) 0.04%

With a total expense ratio (TER) of 0.04%, the portfolio benefits from low costs, which can significantly enhance long-term returns. Low-cost ETFs are an efficient way to gain market exposure without eroding returns through fees, aligning with best practices for maximizing investment efficiency.

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