A growth leaning ETF portfolio with strong North American tilt and notable technology exposure
Report created on Aug 23, 2024Risk profile
4/7
Diversification profile
3/5
Positions
-
VF Vanguard S&P 500 Index ETF
VFV - CA92205Y1051 61.00% -
XE iShares Core Equity Portfolio
XEQT - CA46436D1087 37.00% -
TE TD Global Technology Leaders Index ETF
TEC - CA87241G1000 2.00%
The overall mix is heavily tilted to equities through broad market ETFs, with a small pure tech satellite on top. Around three fifths sits in a large US tracker, with most of the rest in a global equity core, and only a sliver in a focused tech fund. This kind of structure matters because the broad funds decide most of the risk and return, while the tiny satellite adds only a marginal tilt. Relative to a typical balanced benchmark, this setup is more equity-heavy and has very little explicit defensive allocation. Gradually building a clearer split between growth assets and stabilizers like high-quality bonds or cash equivalents could better match a truly balanced profile.
Growth
Historically, the portfolio has done very well, with a compound annual growth rate (CAGR) of 16.35%. CAGR is like measuring your average speed on a long road trip, smoothing out all the bumps along the way. A $10,000 starting amount would have grown far faster than many traditional balanced benchmarks over the same period, which is a strong result. The flip side is a maximum drawdown of about -28%, meaning at one point the value fell that much from a previous high. That drop is milder than a pure-stock crash but still significant. It’s important to remember that past returns, especially strong ones, are not a promise of similar gains in the future.
Projection
Forward projections using Monte Carlo analysis show very optimistic ranges, with all 1,000 simulations ending positive and a high average annualized return. Monte Carlo is a method that takes historical data and randomizes future paths, like running 1,000 alternate timelines based on the same weather patterns. The wide spread between the 5th percentile (around tripling) and the median (almost tenfold) underlines how uncertain the future really is. While these results suggest attractive upside, they are still just statistical scenarios built on past conditions. Treat them as a rough map rather than a guarantee, and consider stress-testing expectations by planning for outcomes closer to the lower end of the range.
Asset classes
- US Equity 78%
- Stocks 10%
- Cash 1%
The asset mix is dominated by equities, with roughly four-fifths in stocks, a small slice labeled generic equity, minimal cash, and effectively no meaningful allocation to traditional lower-risk assets. For a profile called “balanced,” most benchmarks would hold a larger portion in stabilizers like investment-grade bonds to cushion volatility. This equity-heavy stance helps explain the strong historical performance and the relatively deep drawdowns. For someone wanting growth with some downside control, carving out a more visible defensive sleeve and deciding on a target range for cash-like assets could help. Setting a simple rule, like a minimum percentage in lower-volatility holdings, can keep risk aligned with long-term comfort.
Sectors
- Technology 31%
- Financials 16%
- Consumer Discretionary 10%
- Telecommunications 9%
- Industrials 9%
- Health Care 8%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 4%
- Utilities 2%
- Real Estate 2%
Sector exposure is fairly broad, covering all major areas of the market, but leans clearly toward technology at just over 30%. Technology-heavy portfolios can benefit in innovative, low-rate environments but often feel sharper swings when interest rates rise or sentiment turns. Financials, consumer cyclicals, communication services, and industrials add meaningful diversification and line up reasonably well with common global equity benchmarks, which is a strong sign that the core is well-constructed. This alignment suggests the underlying ETFs are doing their job of mirroring broad markets. To keep risk in check, it can help to periodically review whether the tech tilt is intentional and still fits comfort levels, especially after big rallies or drawdowns in that sector.
Regions
- North America 89%
- Europe Developed 6%
- Japan 2%
- Asia Developed 1%
- Asia Emerging 1%
- Australasia 1%
Geographically, the portfolio is very North America-focused, with close to 90% exposure there and only modest slices to Europe, Japan, and other developed and emerging regions. This home-region and US tilt has worked well in recent years because North American markets, especially the US, have outperformed many others. However, relying heavily on one region can raise concentration risk if that area hits a prolonged slump. Many global benchmarks hold a somewhat larger share in non-North American markets, spreading political, currency, and economic risks. Keeping the strong North American core but gradually nudging up international exposure can improve diversification without fully changing the portfolio’s character.
Market capitalization
- Mega-cap 45%
- Large-cap 33%
- Mid-cap 18%
- Small-cap 3%
Market capitalization exposure is skewed toward mega and big companies, with smaller firms playing only a minor role. Mega and large caps are usually household names with more stable business models and better access to funding, which tends to lower individual-company risk but can limit explosive upside. Smaller and mid-sized companies often bring more growth potential but can be bumpier and more sensitive to economic cycles. The current balance is well-aligned with many global equity benchmarks, which is positive and suggests sensible construction. For a bit more diversification, some investors like to ensure that mid-sized companies stay meaningfully represented rather than fading as large caps dominate over time.
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.
From a risk–return perspective, this portfolio likely sits above a traditional “balanced” risk level but on a strong growth trajectory. The Efficient Frontier is a concept that maps the best possible trade-off between risk and return using the same building blocks, like finding the sweet spot between speed and fuel use in a car. Optimization here would mean shifting only the weights among the existing holdings or adding complementary lower-volatility assets, aiming to reduce risk for a similar expected return, or boost expected return without raising risk too much. Any rebalance should respect personal comfort with swings rather than chasing the mathematically “perfect” point. Historical data helps guide this, but it cannot predict future market regimes with certainty.
Dividends
- TD Global Technology Leaders Index ETF 0.10%
- Vanguard S&P 500 Index ETF 0.50%
- iShares Core Equity Portfolio 0.90%
- Weighted yield (per year) 0.64%
The overall dividend yield sits around 0.64%, which is relatively low and clearly signals a growth-oriented portfolio rather than an income-focused one. Dividend yield is simply the cash payouts received each year as a percentage of the portfolio’s value, a bit like rental income on a property. Lower yields are common for funds tilted toward growth and technology companies, which often reinvest profits instead of paying them out. This setup is well-suited to investors who care more about long-term appreciation than regular cash flow. If steady income becomes a bigger goal later, gradually integrating higher-yielding holdings or a small income sleeve can help, while still keeping the growth engine in place.
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