Growth-oriented portfolio with a strong tilt towards financials and technology sectors

Report created on Jul 15, 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 showcases a significant concentration in the financial and technology sectors, with nearly 57% of assets allocated across these areas. The inclusion of both ETFs and individual stocks, predominantly within the financial services, technology, and industrials sectors, indicates a strategy aiming for growth with a balance of sector-specific and broad market exposure. However, this concentration also exposes the portfolio to sector-specific risks, potentially impacting volatility and overall performance during market downturns in these sectors.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 19.30%, the portfolio has demonstrated robust growth, outpacing many standard benchmarks. This high performance, however, comes with a significant level of risk, as evidenced by a maximum drawdown of -33.86%. It's crucial to understand that such high returns often involve higher volatility and risk, suggesting that the portfolio's past performance is partly due to favorable market conditions for its concentrated sectors.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of possible future outcomes, suggest a wide range of potential portfolio values. The 50th percentile outcome showing a 29.0% return is promising, yet the 5th percentile outcome at -98.3% underscores the high risk associated with this growth-oriented portfolio. Such projections are useful for understanding potential volatility but should be taken with caution as they cannot guarantee future performance.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily skewed towards stocks (99%), with a minimal cash holding (1%). This allocation supports the portfolio's growth objectives but also increases its susceptibility to market volatility. Diversifying across more asset classes, such as bonds or real estate, could provide a buffer during stock market downturns, potentially smoothing out returns over time.

Sectors Info

  • Financials
    30%
  • Technology
    27%
  • Industrials
    12%
  • Telecommunications
    10%
  • Health Care
    6%
  • Consumer Discretionary
    6%
  • Consumer Staples
    3%
  • Energy
    2%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

The sectoral allocation demonstrates a clear preference for financial services and technology, which are sectors known for their growth potential but also for their volatility. The under-representation of more defensive sectors like utilities and consumer staples could mean the portfolio may not be as resilient during market downturns. Balancing high-growth sectors with more stable ones could improve the portfolio's risk-adjusted returns.

Regions Info

  • North America
    84%
  • Europe Developed
    11%
  • Japan
    2%
  • Asia Emerging
    1%
  • Asia Developed
    1%
  • Australasia
    1%

With 84% of assets in North America and a modest allocation to Europe and other regions, the portfolio shows a strong home bias. While this focus has likely contributed to its high historical returns, given the strong performance of U.S. markets, it also limits geographic diversification. Expanding into emerging markets or other developed regions could offer additional growth opportunities and reduce geographical risk.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    31%
  • Mid-cap
    15%
  • Small-cap
    6%
  • Micro-cap
    1%

The portfolio's emphasis on mega and big-cap stocks (77% combined) aligns with its growth orientation, as these companies often provide stable returns. However, this focus may limit exposure to high-growth potential found in smaller companies. Including a broader mix of market capitalizations could enhance diversification and potentially uncover new growth avenues.

Redundant positions Info

  • Vanguard FTSE Developed Markets Index Fund ETF Shares
    Vanguard FTSE Europe Index Fund ETF Shares
    Vanguard Total International Stock Index Fund ETF Shares
    High correlation
  • Vanguard Growth Index Fund ETF Shares
    Vanguard S&P 500 Growth Index Fund ETF Shares
    Vanguard S&P 500 ETF
    High correlation

The analysis highlights high correlation within groups of assets, particularly among certain ETFs, which could limit the benefits of diversification. Reducing overlap by consolidating investments in highly correlated assets could streamline the portfolio and reduce redundancy, potentially enhancing overall performance without significantly increasing 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 portfolio could benefit from an optimization process focused on reducing asset overlap and improving diversification across sectors, geographies, and asset classes. By addressing the high correlation among certain assets, the portfolio can achieve a more efficient risk-return profile, potentially enhancing performance while maintaining or even reducing overall risk levels.

Dividends Info

  • Alphabet Inc Class A 0.40%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.70%
  • Vanguard Financials Index Fund ETF Shares 1.70%
  • Vanguard FTSE Europe Index Fund ETF Shares 2.90%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.50%
  • Vanguard Value Index Fund ETF Shares 2.20%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.22%

With a total dividend yield of 1.22%, the portfolio leans more towards capital appreciation than income generation. This yield level is consistent with its growth-focused strategy but might not suit those seeking regular income. Investors might consider balancing growth-oriented assets with higher-yielding investments to diversify income sources.

Ongoing product costs Info

  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard Financials Index Fund ETF Shares 0.10%
  • Vanguard FTSE Europe Index Fund ETF Shares 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.10%
  • Vanguard Value Index Fund ETF Shares 0.04%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.06%

The portfolio's total expense ratio (TER) of 0.06% is impressively low, which is beneficial for long-term growth as lower costs directly translate to higher net returns. This cost efficiency is a strong aspect of the portfolio, supporting its ability to capitalize on its chosen markets and sectors effectively.

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