A focused growth portfolio with high exposure to the S&P 500 and significant gold investment

Report created on Aug 5, 2025

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

Positions

This portfolio is heavily weighted towards the Vanguard S&P 500 ETF, comprising 60% of the total, followed by a substantial 30% allocation in the iShares® Gold Trust Micro, and a 10% stake in the Schwab U.S. Dividend Equity ETF. This composition reflects a strategy that leans heavily on US equities for growth, complemented by gold as a hedge against market volatility and inflation, and a smaller dividend-yielding component for income. The portfolio's diversification is low, with a significant concentration in large-cap stocks and a single asset class (stocks) dominating.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 13.19%, with a maximum drawdown of -19.23%. These figures suggest a robust performance, likely buoyed by the strong equity markets in recent years, particularly in the technology sector, which is well-represented in the S&P 500. However, the portfolio's reliance on a few asset types and sectors may have contributed to its volatility, as indicated by the drawdown figure.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, indicate a wide range of possible performances for this portfolio, with a median expected increase of 352.6%. While these simulations suggest a high likelihood of positive returns, with 993 out of 1,000 simulations showing growth, it's important to remember that past performance is not a reliable indicator of future results. The simulations highlight the potential for significant growth but also underscore the uncertainty inherent in investing.

Asset classes Info

  • Stocks
    70%

The portfolio's asset allocation is heavily skewed towards stocks (70%), with a notable absence of bonds, real estate, or other diversifying assets outside of gold. This allocation aligns with a growth-oriented strategy but limits the portfolio's ability to mitigate risk through diversification. The inclusion of gold, while providing a hedge, does not compensate for the lack of exposure to other asset classes that could offer different risk/return profiles.

Sectors Info

  • Technology
    21%
  • Financials
    9%
  • Consumer Discretionary
    7%
  • Health Care
    7%
  • Telecommunications
    6%
  • Industrials
    6%
  • Consumer Staples
    5%
  • Energy
    4%
  • Utilities
    2%
  • Real Estate
    1%
  • Basic Materials
    1%

Sector allocation within the portfolio is predominantly focused on technology, financial services, and consumer cyclicals, reflecting the composition of the S&P 500. This concentration in sectors that are sensitive to economic cycles may increase the portfolio's volatility. Diversifying into more defensive sectors or broadening exposure to include underrepresented sectors could help smooth returns over time.

Regions Info

  • North America
    70%

Geographic exposure is heavily concentrated in North America (70%), with no allocation to developed or emerging markets outside of this region. This concentration enhances exposure to US economic growth but also increases susceptibility to region-specific risks. Diversifying geographically could provide access to growth in other economies and reduce the impact of US-centric economic downturns.

Market capitalization Info

  • Mega-cap
    28%
  • Large-cap
    27%
  • Mid-cap
    14%
  • Small-cap
    1%

The portfolio's market capitalization exposure is balanced between mega (28%) and big (27%) cap stocks, with a smaller presence in medium (14%) and minimal in small (1%) caps. This skew towards larger companies is typical for portfolios focused on the S&P 500 and generally means lower volatility but also potentially lower growth opportunities compared to portfolios with higher small and mid-cap exposure.

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 allocation suggests an emphasis on growth, primarily through US equities, with gold serving as a volatility hedge. However, the Efficient Frontier analysis could indicate opportunities to optimize the risk-return profile by adjusting allocations or incorporating additional asset classes. This optimization process aims to achieve the best possible balance between risk and return, potentially enhancing the portfolio's long-term performance.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.90%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.11%

The portfolio's dividend yield, driven primarily by the Schwab U.S. Dividend Equity ETF, contributes to the portfolio's total income. While the overall yield is modest, it offers a source of steady income, which can be particularly valuable in periods of market volatility or flat growth. Balancing growth and income-generating assets can provide a more stable return profile over time.

Ongoing product costs Info

  • iShares® Gold Trust Micro 0.09%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.05%

With an average Total Expense Ratio (TER) of 0.05%, the portfolio benefits from low costs, which supports better long-term performance. Keeping costs low is crucial for maximizing returns, especially in a low-diversity portfolio where the impact of fees on net performance can be more pronounced.

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