A growth-oriented portfolio with a strong emphasis on US equities and technology

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio suits an investor with a growth-oriented profile, comfortable with higher risk for the potential of higher returns. It's ideal for those with a longer investment horizon, allowing them to weather short-term market volatility in pursuit of substantial long-term gains. The investor likely has a keen interest in technology and US equities, valuing the growth prospects these sectors and regions offer.

Positions

  • Vanguard S&P 500 ETF
    VOO - US9229083632
    42.38%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS
    FSPGX - US31635V7293
    17.83%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS
    FTIHX - US31635V6386
    16.03%
  • Schwab U.S. Dividend Equity ETF
    SCHD - US8085247976
    14.29%
  • Broadcom Inc
    AVGO - US11135F1012
    3.96%
  • Avantis® International Small Cap Value ETF
    AVDV - US0250728021
    2.12%
  • Avantis® U.S. Small Cap Value ETF
    AVUV - US0250728773
    2.07%
  • Fidelity® Government Money Market Fund
    SPAXX - US31617H1023
    1.32%

This portfolio is heavily weighted towards US equity, particularly within the S&P 500 and large-cap growth sectors, making up nearly 60% of the total allocation. The inclusion of international funds and specific stock picks like Broadcom Inc. adds a layer of diversification, though the focus remains on growth-oriented assets. The balance between ETFs, mutual funds, and individual stocks is well-considered, aiming to capture broad market gains while seeking specific growth opportunities.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 18.03% and a maximum drawdown of -33.36%, this portfolio demonstrates strong growth potential tempered by significant volatility. The days contributing to 90% of the returns highlight the impact of short-term gains, suggesting an aggressive growth strategy. Compared to a more conservative benchmark, this performance indicates a higher risk but also the possibility of substantial rewards, aligning with the portfolio's growth profile.

Projection Info

Utilizing Monte Carlo simulations, which project future performance based on historical data, this portfolio shows a wide range of outcomes. While the 50th percentile suggests a substantial growth potential of 557.6%, the 5th percentile indicates a possible severe loss. These projections, while not guarantees, underscore the portfolio's high-risk, high-reward nature, emphasizing the importance of risk tolerance and investment horizon for potential investors.

Asset classes Info

  • Stocks
    98%
  • Unknown
    1%
  • Cash
    1%
  • Other
    0%
  • Not Classified
    0%

The asset allocation is heavily skewed towards stocks (98%), with a minimal presence in cash and other asset classes. This composition underscores the portfolio's growth orientation but also its susceptibility to market volatility. Diversifying into other asset classes, such as bonds or real estate, could provide a buffer against stock market downturns, potentially smoothing out returns over time.

Sectors Info

  • Technology
    31%
  • Financials
    13%
  • Health Care
    9%
  • Industrials
    9%
  • Telecommunications
    8%
  • Consumer Staples
    7%
  • Consumer Discretionary
    7%
  • Energy
    5%
  • Consumer Discretionary
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    1%
  • Unknown
    1%

The technology sector's dominant 31% weighting capitalizes on its growth potential but also exposes the portfolio to sector-specific risks, such as regulatory changes or market sentiment shifts. Financial Services and Healthcare, with significant allocations, offer some diversification, but the overall sectoral balance leans heavily towards cyclical sectors, which may be more volatile in economic downturns.

Regions Info

  • North America
    82%
  • Europe Developed
    7%
  • Japan
    3%
  • Asia Emerging
    2%
  • Asia Developed
    2%
  • Unknown
    1%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    0%
  • Europe Emerging
    0%

With 82% of the portfolio concentrated in North America, primarily the US, there's a strong home bias. This concentration benefits from the US market's historical strength but limits exposure to potential growth in other regions. Diversifying more into emerging markets or developed regions outside the US could reduce geographic risk and tap into global growth trends.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    32%
  • Mid-cap
    18%
  • Small-cap
    4%
  • Unknown
    1%
  • Micro-cap
    1%

The focus on Mega and Big cap stocks (75% combined) aligns with the portfolio's growth and stability goals, leveraging the potential of established companies. However, the limited exposure to Small and Micro caps means missing out on higher growth opportunities these segments might offer, albeit with increased risk.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.50%
  • Broadcom Inc 0.60%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.30%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.30%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • Fidelity® Government Money Market Fund 0.80%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.60%

The average dividend yield of 1.60% contributes to the portfolio's total return, complementing capital gains with income. While not the primary focus, dividends offer a passive income stream and can provide a cushion during market volatility. Considering higher dividend-yielding investments may enhance income without significantly increasing risk.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.06%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.05%

With an overall Total Expense Ratio (TER) of 0.05%, the portfolio is cost-efficient, maximizing the potential for net returns. This low cost structure is advantageous, especially in a growth-oriented portfolio where every percentage point of return counts. Maintaining focus on cost efficiency while exploring diversification opportunities could further optimize performance.

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.

The current allocation suggests a well-considered approach to maximizing growth within a specified risk level. Using the Efficient Frontier as a guide, there might be room to adjust allocations slightly to achieve a better risk-return balance. However, any optimization should carefully weigh the potential benefits against the investor's risk tolerance and investment goals.

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