Growth-oriented portfolio with a strong emphasis on technology and North American equities

Report created on Aug 1, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards ETFs, with a 40% allocation in a growth index, 25% in a total stock market index, 20% in international stocks, and 15% in U.S. small-cap value ETFs. This structure suggests a growth-focused strategy, leveraging broad diversification across sectors and geographies, albeit with a significant tilt towards the U.S. market. The portfolio's concentration in ETFs simplifies management and potentially reduces costs, aligning well with a growth profile that seeks to capitalize on market-wide trends.

Growth Info

Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 16.84%, with a notable maximum drawdown of -34.82%. The performance metrics indicate a strong growth trajectory, albeit with periods of significant volatility. This historical performance, while impressive, should be considered with the understanding that past results do not guarantee future outcomes. The days contributing most to returns highlight the portfolio's susceptibility to short-term market movements, underscoring the importance of a long-term perspective.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the 50th percentile suggesting substantial growth potential. However, the wide spread between the 5th and 67th percentiles indicates considerable uncertainty, a common trait for growth-oriented investments. These projections, while based on historical data, are hypothetical and should be viewed as one of many tools in assessing potential future performance. They underscore the importance of risk tolerance and the need for ongoing portfolio review.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely composed of stocks (99%), with a minimal cash holding. This asset class allocation supports a growth-oriented investment strategy, aiming for higher returns at the expense of increased volatility. While this approach aligns with the portfolio's growth profile, investors should be aware of the heightened risk associated with a lack of diversification across asset classes, such as bonds or real estate, which can offer stabilizing effects during market downturns.

Sectors Info

  • Technology
    31%
  • Financials
    15%
  • Consumer Discretionary
    13%
  • Industrials
    10%
  • Telecommunications
    9%
  • Health Care
    7%
  • Consumer Staples
    4%
  • Energy
    4%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    1%

With technology, financial services, and consumer cyclicals leading the sectoral allocation, the portfolio is positioned to benefit from growth in these dynamic areas. However, the heavy emphasis on technology (31%) may expose the portfolio to sector-specific risks, including regulatory changes and market sentiment shifts. Balancing sector exposures can mitigate such risks while still capitalizing on growth opportunities in these high-performing areas.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation is heavily skewed towards North America (81%), with modest exposures to developed Europe and emerging Asian markets. This concentration may limit exposure to global growth opportunities and increase susceptibility to regional economic cycles. Expanding into underrepresented regions could enhance global diversification, potentially reducing risk and tapping into emerging market growth.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    23%
  • Mid-cap
    13%
  • Small-cap
    9%
  • Micro-cap
    8%

The market capitalization breakdown reveals a preference for mega and big-cap stocks, which typically offer stability and steady growth. However, the inclusion of small and micro-cap stocks (17% combined) introduces higher growth potential with increased volatility. Balancing market cap exposures can optimize the trade-off between risk and return, leveraging the stability of larger companies while capturing the growth potential of smaller entities.

Redundant positions Info

  • Vanguard Growth Index Fund ETF Shares
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation between the Vanguard Growth Index Fund ETF Shares and Vanguard Total Stock Market Index Fund ETF Shares indicates overlapping holdings that may not contribute to diversification. Identifying and reducing such redundancies can enhance the portfolio's efficiency, ensuring that each asset contributes uniquely to the portfolio's risk and return profile.

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.

Optimizing the portfolio along the Efficient Frontier could involve redistributing investments to reduce overlap and enhance diversification without necessarily sacrificing expected returns. This process, focusing on the trade-off between risk and return, aims to achieve the most efficient use of capital by carefully adjusting asset allocations.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.30%

The portfolio's overall dividend yield stands at 1.30%, with the highest yield from the Vanguard Total International Stock Index Fund ETF Shares. While dividends contribute to total returns, the portfolio's focus on growth over income is evident in its relatively low yield. Investors prioritizing growth may find this acceptable, but those seeking income might consider adjusting allocations to include higher-yielding assets.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.07%

The Total Expense Ratio (TER) of 0.07% is impressively low, enhancing net returns over time. Lower costs are particularly beneficial in growth-oriented portfolios, where compounding plays a crucial role in wealth accumulation. Maintaining attention to costs, including transaction fees and tax implications, remains crucial for optimizing long-term performance.

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