A growth-oriented portfolio with a diversified global exposure and a focus on technology and industrials

Report created on May 6, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio showcases a strategic blend of funds and ETFs aimed at capturing the broad market's growth while emphasizing technology and industrials. With 20% allocations in both the Fidelity Total Market Index Fund and the Vanguard Total World Stock Index Fund ETF Shares, it leans heavily on broad market exposure. The inclusion of specialized ETFs like the Global X Robotics & Artificial Intelligence ETF and targeted funds such as the MASSMUTUAL SELECT SMALL CAP GROWTH EQUITY FUND CLASS R5 and the Schwab Emerging Markets Equity ETF diversifies the portfolio into high-growth potential areas and emerging markets. This mix supports a growth-oriented strategy with a higher-than-average risk tolerance, reflected in its risk score of 5 out of 7.

Growth Info

The portfolio's historical performance, with a Compound Annual Growth Rate (CAGR) of 11.07% and a maximum drawdown of -36.03%, indicates resilience and robust growth potential. The days contributing most to returns highlight the importance of staying invested during volatile periods. While past performance is not indicative of future results, this track record suggests a strong capacity for recovery and growth, aligning well with a growth-inclined investor's objectives.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential future outcomes, suggest a wide range of possibilities for this portfolio. With a median projected growth of 193.7% and a high percentile outcome showing even greater potential, these projections underscore the portfolio's growth capabilities. However, it's crucial to remember that simulations cannot predict future market conditions with certainty, and investors should consider the range of outcomes in their planning.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's nearly exclusive allocation to stocks (99%) with a minimal cash reserve (1%) underscores its aggressive growth stance. This asset class distribution aligns with its goal of capital appreciation but comes with higher volatility. Diversifying across different asset classes, including bonds or real estate, could provide a buffer against market fluctuations and reduce overall portfolio risk.

Sectors Info

  • Technology
    24%
  • Industrials
    17%
  • Financials
    17%
  • Health Care
    10%
  • Consumer Discretionary
    7%
  • Telecommunications
    5%
  • Energy
    5%
  • Consumer Staples
    5%
  • Consumer Discretionary
    4%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    2%

With significant allocations to technology and industrials, the portfolio is positioned to benefit from sectors often associated with innovation and economic growth. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or economic downturns affecting these industries more severely. Balancing sector exposure can mitigate these risks while still capturing growth opportunities.

Regions Info

  • North America
    69%
  • Asia Emerging
    11%
  • Japan
    6%
  • Europe Developed
    5%
  • Asia Developed
    4%
  • Africa/Middle East
    2%
  • Latin America
    2%

The geographic allocation, heavily weighted towards North America (69%), reflects a strong bias towards the U.S. market, complemented by diversified exposure to emerging and developed markets globally. This geographical spread helps mitigate risks associated with any single region's economic or political instability. However, further increasing exposure to underrepresented regions could enhance global diversification benefits.

Market capitalization Info

  • Mega-cap
    28%
  • Small-cap
    25%
  • Large-cap
    21%
  • Mid-cap
    13%
  • Micro-cap
    11%

The portfolio's market capitalization exposure, with a mix of mega, small, big, medium, and micro-cap stocks, indicates a balanced approach to capturing growth across different company sizes. Small and micro-cap allocations, in particular, suggest a higher risk and reward profile, aligning with the portfolio's growth objectives. Rebalancing the market cap distribution could further optimize risk-adjusted returns.

Redundant positions Info

  • Fidelity Total Market Index Fund
    Vanguard Total World Stock Index Fund ETF Shares
    High correlation

The high correlation between the Fidelity Total Market Index Fund and the Vanguard Total World Stock Index Fund ETF Shares suggests overlapping exposures, which may limit diversification benefits. Identifying and reducing such overlap can enhance the portfolio's efficiency by ensuring each holding contributes uniquely to its 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.

The portfolio's current setup suggests an opportunity for optimization by addressing the overlap in holdings, particularly between the Fidelity Total Market Index Fund and the Vanguard Total World Stock Index Fund ETF Shares. Adjusting the asset allocation to reduce redundancy could achieve a more efficient risk-return profile, potentially raising the expected return to 14.77% without increasing the portfolio's overall risk level.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.90%
  • Global X Robotics & Artificial Intelligence ETF 0.10%
  • Fidelity Total Market Index Fund 1.10%
  • Schwab Emerging Markets Equity ETF 2.80%
  • Vanguard Total World Stock Index Fund ETF Shares 1.90%
  • Weighted yield (per year) 1.32%

The portfolio's dividend yield, averaging 1.32%, contributes to its total return, providing a steady income stream in addition to capital gains. While the focus remains on growth, dividends offer a partial cushion during market downturns. Investors might consider rebalancing towards higher-yielding assets if income becomes a more significant objective.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Global X Robotics & Artificial Intelligence ETF 0.68%
  • Schwab Emerging Markets Equity ETF 0.11%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.17%

With an average Total Expense Ratio (TER) of 0.17%, the portfolio benefits from relatively low costs, enhancing its long-term growth potential. Lower costs mean more of the investment's return is retained by the investor, a crucial factor in compounding growth over time. Continuously monitoring and minimizing investment costs remains a best practice for all investors.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

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