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

Report created on Aug 4, 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 the US stock market, with a 70% allocation to the Vanguard Total Stock Market Index Fund ETF Shares and a 20% allocation to the Invesco NASDAQ 100 ETF, emphasizing technology. The remaining 10% is invested in the Vanguard Total International Stock Index Fund ETF Shares, offering some international exposure. This composition reflects a growth-oriented strategy with a moderate level of diversification, primarily in stocks, and a minimal cash position.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 14.20%, with a maximum drawdown of -27.45%. These figures suggest robust growth potential but also highlight periods of significant volatility. The days contributing to 90% of returns being concentrated in just 18 days indicates that much of the portfolio's gains can be attributed to very short, albeit strong, market rallies. This pattern underscores the importance of staying invested through market cycles to capture these critical periods of gain.

Projection Info

Monte Carlo simulations, running 1,000 scenarios, project a wide range of outcomes with a median increase of 428.1% and a 5th percentile at a much lower 64.0%, indicating potential risks. The simulations suggest a high likelihood of positive returns, with 985 out of 1,000 simulations ending positively. However, the significant spread between the 5th and 67th percentiles highlights the uncertainty and risk inherent in this portfolio's growth-focused strategy.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset class allocation is almost entirely in stocks (99%), with a negligible cash position (1%). This high equity exposure aligns with its growth profile but comes with increased volatility and risk. The lack of investment in bonds or other asset classes means missing out on potential diversification benefits that could reduce overall portfolio risk.

Sectors Info

  • Technology
    34%
  • Financials
    12%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Health Care
    9%
  • Industrials
    9%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

With 34% allocated to technology and significant investments in financial services and consumer cyclicals, this portfolio is positioned to benefit from growth in these dynamic sectors. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or economic shifts impacting these industries. Diversifying across a broader range of sectors could mitigate some of this risk.

Regions Info

  • North America
    90%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%

The portfolio's geographic allocation is heavily skewed towards North America (90%), with minimal exposure to international markets. This concentration in developed markets, particularly the US, may limit potential gains from emerging markets and increases exposure to region-specific economic and political risks.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    31%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    2%

The emphasis on mega (44%) and big (31%) cap stocks suggests a focus on established, large companies, likely contributing to the portfolio's overall growth. While these companies tend to be less volatile than smaller caps, the relatively lower allocation to medium, small, and micro-cap stocks might limit opportunities for higher returns that these segments can offer.

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 current allocation and risk profile, optimizing for the Efficient Frontier could involve diversifying more broadly across asset classes and geographies. This optimization aims to achieve the best possible risk-return ratio, though it's essential to remember that "efficiency" focuses on this balance rather than diversification or other investment goals alone.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.23%

The portfolio's dividend yields, led by the Vanguard Total International Stock Index Fund ETF Shares at 2.90%, contribute to its total yield of 1.23%. While dividends provide a steady income stream and can cushion against market volatility, the portfolio's primary focus on growth means dividends play a secondary role in its overall return strategy.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.06%

With a total expense ratio (TER) of 0.06%, this portfolio benefits from low costs, enhancing long-term returns. The low fees are particularly advantageous for a growth-oriented strategy, where keeping costs minimal is crucial for maximizing investment growth over time.

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