A growth-focused portfolio with a strong tilt towards technology and large-cap stocks

Report created on Jul 18, 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 equities, with a significant portion allocated to the Vanguard Institutional Index Fund (40%) and a notable emphasis on the technology sector (20%). This composition suggests a growth-oriented strategy, leveraging the broad market exposure of large-cap stocks combined with the higher growth potential of small-cap and technology investments. The inclusion of the Vanguard Total International Stock Index Fund (15%) introduces a degree of global diversification, though the portfolio remains predominantly US-centric.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 14.09%, with a maximum drawdown of -34.52%. These figures indicate a relatively high level of volatility, commensurate with its growth-focused strategy. The days contributing to 90% of the returns being concentrated in just 31.0 days highlight the portfolio's susceptibility to short-term market movements, emphasizing the importance of a long-term investment horizon for investors in this portfolio.

Projection Info

Monte Carlo simulations, which use historical data to project a range of possible future outcomes, suggest a median growth potential of 446.6% over the simulated period. While promising, it's crucial to remember that such simulations are inherently uncertain and depend on past market behavior, which may not accurately predict future performance. Investors should consider these projections as one of many tools in evaluating potential future outcomes, not guarantees.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%
  • Other
    1%

The portfolio's asset allocation is overwhelmingly in stocks (99%), with a minimal cash reserve (1%). This high equity exposure aligns with its growth profile but also increases its risk, particularly in market downturns. Diversifying across different asset classes, including bonds or real estate, could provide a buffer against equity market volatility while potentially sacrificing some growth.

Sectors Info

  • Technology
    38%
  • Financials
    12%
  • Industrials
    10%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Real Estate
    3%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%

With 38% of the portfolio invested in technology, alongside significant allocations to financial services and industrials, the sector distribution underscores the portfolio's growth orientation. However, this concentration in technology also introduces sector-specific risks, including higher volatility and susceptibility to regulatory changes. Balancing this with investments in more stable sectors could mitigate risk without significantly dampening growth prospects.

Regions Info

  • North America
    84%
  • Europe Developed
    7%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

The geographic allocation is heavily skewed towards North America (84%), with modest exposure to developed Europe and emerging Asian markets. This concentration benefits from the robust performance of the US market but limits potential gains from global diversification. Increasing exposure to underrepresented regions could enhance returns and reduce geographic risk.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    22%
  • Mid-cap
    20%
  • Small-cap
    16%
  • Micro-cap
    3%

The market capitalization breakdown shows a preference for mega (37%) and big (22%) cap stocks, fitting for a growth-focused portfolio seeking stability and potential for appreciation. However, the presence of medium, small, and micro caps (39% combined) suggests an attempt to capture the higher growth potential of smaller companies, albeit with increased 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.

Considering the Efficient Frontier, this portfolio appears well-positioned for growth, balancing risk and return effectively within its current asset allocation. However, ongoing monitoring and rebalancing are essential to maintain this balance, especially given the portfolio's heavy reliance on the technology sector and large-cap stocks. Adjustments may be necessary to align with changing market conditions and the investor's evolving risk tolerance.

Dividends Info

  • TECHNOLOGY PORTFOLIO TECHNOLOGY PORTFOLIO 6.40%
  • VANGUARD INSTITUTIONAL INDEX FUND INSTITUTIONAL PLUS SHARES 2.10%
  • VANGUARD SMALL-CAP INDEX FUND INSTITUTIONAL SHARES 1.00%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND INSTITUTIONAL SHARES 2.10%
  • Weighted yield (per year) 2.68%

The portfolio's average dividend yield of 2.68% contributes to its total return, with the Technology Portfolio offering a notably high yield of 6.40%. While growth is the primary goal, these dividends provide a steady income stream, which can be reinvested to compound growth or used as income, depending on the investor's needs.

Ongoing product costs Info

  • TECHNOLOGY PORTFOLIO TECHNOLOGY PORTFOLIO 0.62%
  • VANGUARD INSTITUTIONAL INDEX FUND INSTITUTIONAL PLUS SHARES 0.02%
  • VANGUARD SMALL-CAP INDEX FUND INSTITUTIONAL SHARES 0.04%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND INSTITUTIONAL SHARES 0.06%
  • Weighted costs total (per year) 0.15%

With a total expense ratio (TER) of 0.15%, the portfolio is cost-efficient, maximizing the investor's return potential. The low costs are particularly impressive given the broad diversification and active management within the technology allocation. Keeping costs low is crucial for long-term growth, as even small differences in fees can significantly impact net returns over time.

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