A growth-focused portfolio with high exposure to US and international stocks
Report created on Jul 18, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 80.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00%
This portfolio is highly concentrated in two ETFs: 80% in a Total Stock Market Index Fund and 20% in an International Stock Index Fund. This composition reflects a strong emphasis on equities, with a 99% allocation towards stocks and a minimal cash position. Such a structure is indicative of a growth-oriented strategy, aiming for capital appreciation over the long term. The diversification across numerous sectors and geographies, albeit with a significant tilt towards North American markets, suggests a broad market exposure approach.
Growth
Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 12.62%, with a maximum drawdown of -34.73%. These figures suggest robust growth potential, albeit with significant volatility, as evidenced by the steep drawdown. The days contributing to 90% of returns being limited to 27.0 indicates that the portfolio's performance is heavily reliant on specific high-growth periods, which is typical for equity-heavy investments.
Projection
Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. The median projection (50th percentile) suggests a potential 280.3% return, with a high degree of variability indicated by the 5th and 67th percentiles. It's important to note that while these simulations can provide insight, they are not guarantees of future performance and should be considered as one of many tools in investment decision-making.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's allocation is overwhelmingly in stocks, with a minor position in cash. This aligns with its growth profile but comes with higher volatility and risk compared to more diversified asset class allocations. The lack of bonds or alternative investments may limit the portfolio's ability to hedge against market downturns, suggesting a potential area for diversification to reduce risk.
Sectors
- Technology 27%
- Financials 16%
- Consumer Discretionary 11%
- Industrials 10%
- Health Care 10%
- Telecommunications 8%
- Consumer Staples 6%
- Energy 3%
- Basic Materials 3%
- Real Estate 3%
- Utilities 3%
Sector allocation leans heavily towards technology, financial services, and consumer cyclicals, which are sectors often associated with higher growth but also higher volatility. This concentration may increase the portfolio's sensitivity to market cycles and sector-specific risks. Balancing sector exposure could mitigate some of these risks while still allowing for growth.
Regions
- North America 81%
- Europe Developed 8%
- Asia Emerging 3%
- Japan 3%
- Asia Developed 2%
- Australasia 1%
- Africa/Middle East 1%
The geographic exposure is predominantly in North America (81%), with limited exposure to emerging markets and other developed regions. This concentration in developed markets, particularly the US, may offer stability but can also limit exposure to high-growth potential in emerging markets. Increasing international diversification could enhance growth prospects and reduce geographic risk.
Market capitalization
- Mega-cap 42%
- Large-cap 31%
- Mid-cap 19%
- Small-cap 6%
- Micro-cap 2%
The portfolio's market capitalization breakdown shows a preference for larger companies, with a significant allocation towards mega and big-cap stocks. While this can offer stability and lower volatility, incorporating more medium, small, or micro-cap stocks could enhance growth potential, albeit with increased 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.
Considering the current allocation and asset classes, the portfolio appears to be positioned towards the higher end of the risk-return spectrum, as indicated by its growth profile and risk score. Optimization using the Efficient Frontier could explore whether a different allocation could achieve a similar return with lower risk. However, it's crucial to remember that such optimizations are based on historical data and assumptions that may not hold true in the future.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.52%
The portfolio's dividend yield, averaging 1.52%, contributes to its total return, supplementing growth with income. While the focus remains on capital appreciation, the dividends offer a modest cushion during market fluctuations and a source of reinvestment for compounding growth.
Ongoing product costs
- 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) 0.03%
The portfolio's costs are impressively low, with total expense ratios (TER) of 0.03% for the Total Stock Market Index Fund and 0.05% for the International Stock Index Fund. These low costs are beneficial for long-term growth, as they minimize the drag on performance and allow more of the investment's return to compound over time.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey