Growth-oriented portfolio with a strong tilt towards technology and dividend-paying ETFs

Report created on Sep 24, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is characterized by a heavy emphasis on equity ETFs, accounting for 90% of the allocation, with a notable focus on technology and dividend-yielding sectors. The Vanguard Total Stock Market Index Fund ETF and the Schwab U.S. Dividend Equity ETF form the core, complemented by targeted exposures through the VanEck Semiconductor ETF and the ARK Innovation ETF. A modest cash position is maintained through the iShares® 0-3 Month Treasury Bond ETF. This composition suggests a strategic blend aimed at capital growth with a side of income generation, balanced by a minimal yet significant cash equivalent holding for liquidity.

Growth Info

The portfolio has demonstrated a strong historical performance with a Compound Annual Growth Rate (CAGR) of 18.59%. However, it's essential to note the maximum drawdown of -33.60%, indicating significant volatility and potential risk during market downturns. The concentration in high-growth sectors, particularly technology, likely contributed to both the high returns and the notable drawdown. Comparing this to a diversified benchmark, investors should consider the trade-off between high potential returns and the risk of substantial declines.

Projection Info

Utilizing Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. The median projection suggests substantial growth, but this method's inherent limitation is its reliance on past trends to forecast future returns. While 964 out of 1,000 simulations resulted in positive returns, it's crucial to remember that past performance is not a reliable indicator of future results. Investors should use these projections as one of many tools in their decision-making process.

Asset classes Info

  • Stocks
    90%
  • Cash
    10%

The portfolio's asset allocation leans heavily towards stocks, with a 90% investment in equity ETFs and the remainder in cash equivalents. This allocation aligns with the portfolio's growth profile but carries higher volatility and risk compared to more diversified or bond-heavy portfolios. The absence of direct bond investments, aside from the cash equivalent ETF, limits exposure to fixed income's stabilizing effects, which could be a point of consideration for balancing risk in volatile markets.

Sectors Info

  • Technology
    37%
  • Health Care
    10%
  • Financials
    9%
  • Consumer Discretionary
    8%
  • Telecommunications
    7%
  • Industrials
    6%
  • Consumer Staples
    6%
  • Energy
    5%
  • Basic Materials
    1%
  • Real Estate
    1%
  • Utilities
    1%

With a 37% allocation to technology, followed by healthcare, financial services, and consumer cyclicals, the portfolio is positioned to capitalize on growth sectors. However, this concentration increases susceptibility to sector-specific downturns, particularly in the tech sector, which can be volatile. Diversifying more broadly across sectors could mitigate some of this risk, potentially leading to more stable returns over time.

Regions Info

  • North America
    85%
  • Asia Developed
    2%
  • Europe Developed
    2%

The geographic allocation is heavily skewed towards North America (85%), with minimal exposure to developed markets in Asia and Europe. This concentration in the U.S. market leverages the growth potential of the world's largest economy but also exposes the portfolio to regional economic cycles and geopolitical risks. Expanding geographic diversification could reduce volatility and tap into growth opportunities in other developed and emerging markets.

Market capitalization Info

  • Large-cap
    35%
  • Mega-cap
    27%
  • Mid-cap
    19%
  • Small-cap
    6%
  • Micro-cap
    3%

The portfolio's market capitalization exposure is balanced across big (35%), mega (27%), and medium (19%) cap stocks, with smaller allocations to small and micro caps. This spread suggests a focus on established companies with the potential for growth and stability but may underutilize the higher growth potential of smaller companies. Considering a slight increase in small and micro-cap exposures could enhance growth prospects, 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.

The analysis suggests that an optimized portfolio with the same risk level could achieve a slightly higher expected return. This indicates room for improvement in the current allocation, potentially by adjusting asset class weights or diversifying further across sectors and geographies. However, it's important to remember that optimization models are based on historical data and assumptions that may not fully predict future performance. Continuous monitoring and adjustment in response to changing market conditions and investment objectives are crucial for maintaining an optimal balance.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.80%
  • iShares® 0-3 Month Treasury Bond ETF 4.40%
  • VanEck Semiconductor ETF 0.30%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Weighted yield (per year) 1.64%

The dividend yield contributions from the various ETFs provide a combined yield of 1.64%, with the Schwab U.S. Dividend Equity ETF and the iShares® 0-3 Month Treasury Bond ETF being the primary income generators. While the portfolio is growth-focused, these dividends offer a stream of income, which can be reinvested to compound growth or provide cash flow. Evaluating the balance between growth and income, particularly in relation to the portfolio's risk profile, could inform adjustments to optimize for total return.

Ongoing product costs Info

  • ARK Innovation ETF 0.75%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • iShares® 0-3 Month Treasury Bond ETF 0.07%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.21%

The portfolio's total expense ratio (TER) of 0.21% is relatively low, enhancing net return potential. The variance in individual ETF costs, from the low-cost Vanguard Total Stock Market Index Fund ETF to the higher-cost ARK Innovation ETF, reflects a balance between cost efficiency and targeted investment strategies. Regularly reviewing the cost-benefit of each holding, especially considering the performance and strategic fit, can ensure that expenses remain aligned with investment goals.

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