Growth-oriented portfolio with a strong focus on US equities and technology sector

Report created on Nov 1, 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 heavily weighted towards US equities, comprising 77% in a Vanguard S&P 500 ETF and 23% in a Vanguard FTSE All-World ETF. This allocation reflects a growth-oriented strategy, with a significant emphasis on the US market. The portfolio's diversification is moderate, given its concentrated exposure to a single asset class (stocks) and a predominant focus on large-cap companies.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 15.39%, with a maximum drawdown of -33.93%. These figures suggest a strong performance, albeit with periods of significant volatility. The days contributing to 90% of returns being limited to 25 indicate that the portfolio's gains are heavily reliant on a few exceptional periods.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the 50th percentile suggesting a potential growth of 539.6% over the simulation period. This optimistic projection, supported by a high percentage of simulations resulting in positive returns, underscores the portfolio's growth potential. However, it's crucial to remember that these projections are based on historical data, which does not guarantee future performance.

Asset classes Info

  • Stocks
    100%

The portfolio is 100% invested in stocks, aligning with a growth-focused investment strategy. While this asset class offers high return potential, it also comes with increased volatility and risk. Diversifying across different asset classes could provide a buffer against stock market fluctuations, potentially reducing portfolio volatility.

Sectors Info

  • Technology
    34%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Health Care
    9%
  • Industrials
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

The sectoral allocation is heavily skewed towards technology, financial services, and consumer cyclicals, which are sectors typically associated with higher growth but also higher volatility. This concentration enhances the portfolio's growth prospects but also increases its susceptibility to sector-specific risks.

Regions Info

  • North America
    92%
  • Europe Developed
    4%
  • Asia Emerging
    1%
  • Japan
    1%
  • Asia Developed
    1%

Geographically, the portfolio is overwhelmingly concentrated in North America (92%), with minimal exposure to other regions. This concentration benefits from the robust performance of the US market but limits global diversification, making the portfolio more vulnerable to region-specific economic downturns.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    34%
  • Mid-cap
    18%
  • Small-cap
    1%

The portfolio's emphasis on mega and big-cap companies (81% combined) supports stability and growth potential. However, the limited exposure to medium, small, and micro-cap stocks restricts opportunities for higher returns that these segments may offer, albeit with increased risk.

Redundant positions Info

  • Vanguard FTSE All-World UCITS ETF USD Accumulation
    Vanguard S&P 500 UCITS ETF USD Accumulation
    High correlation

The high correlation between the Vanguard S&P 500 ETF and the Vanguard FTSE All-World ETF indicates overlapping exposures, particularly to US equities, which diminishes the diversification benefits. Reducing such overlaps could enhance portfolio efficiency by spreading risk more broadly across different investments.

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 portfolio's high correlation between assets and concentrated geographic exposure, optimization could involve diversifying more broadly internationally and across different asset classes. This approach might reduce volatility without significantly compromising growth potential, aligning the portfolio closer to the Efficient Frontier, where the risk-return trade-off is optimized.

Ongoing product costs Info

  • Vanguard S&P 500 UCITS ETF USD Accumulation 0.07%
  • Vanguard FTSE All-World UCITS ETF USD Accumulation 0.19%
  • Weighted costs total (per year) 0.10%

With a combined Total Expense Ratio (TER) of 0.10%, the portfolio benefits from low costs, which is crucial for maximizing long-term returns. Keeping costs low is a fundamental principle of investing that supports achieving higher net returns over time.

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