Growth-focused portfolio with a strong emphasis on US stocks and technology sector

Report created on Jul 17, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is primarily invested in U.S. equities, with a significant 60% allocation to a large-cap growth ETF, complemented by positions in mid-cap, small-cap, and an equal weight S&P 500 ETF. The modest 5% in international stocks suggests a strong home country bias. This composition indicates a growth-oriented strategy, leaning heavily on the performance of large technology companies. The portfolio's diversification is moderate, with a concentration in sectors that are known for volatility but also for high growth potential.

Growth Info

Historically, the portfolio has shown a compelling compound annual growth rate (CAGR) of 15.13%, although it has experienced a significant drawdown of -34.02%. This performance is indicative of the high-growth, high-volatility nature of the assets chosen. The days contributing most to returns highlight the portfolio's susceptibility to short-term market movements, underscoring the importance of a long-term investment horizon to mitigate the impact of volatility.

Projection Info

Using Monte Carlo simulations, the forward projection shows a wide range of potential outcomes, with a median increase of 337.2%. This method, while useful for understanding potential volatility and outcome distribution, relies heavily on historical data and assumptions that may not hold true in the future. It's a reminder that while simulations can guide expectations, they cannot guarantee future performance.

Asset classes Info

  • Stocks
    100%

The portfolio is solely comprised of stock ETFs, reflecting a high-risk, high-reward investment approach. This singular focus on equities, without the balance of bonds or other asset classes, may offer higher returns but also exposes the investor to greater market volatility. Diversifying across different asset classes could provide a smoother investment journey, especially during stock market downturns.

Sectors Info

  • Technology
    37%
  • Consumer Discretionary
    12%
  • Telecommunications
    10%
  • Health Care
    10%
  • Industrials
    9%
  • Financials
    9%
  • Consumer Staples
    3%
  • Real Estate
    2%
  • Basic Materials
    2%
  • Energy
    2%
  • Utilities
    2%

With technology making up 37% of the portfolio, followed by consumer cyclicals and healthcare, the sector allocation underscores a preference for industries with high growth prospects. However, this concentration increases susceptibility to sector-specific risks. Balancing this with investments in more defensive sectors could reduce volatility without significantly compromising growth potential.

Regions Info

  • North America
    95%
  • Europe Developed
    2%
  • Asia Emerging
    1%
  • Japan
    1%
  • Asia Developed
    1%

The geographic distribution is heavily skewed towards North America (95%), with minimal exposure to international markets. This concentration in a single region, while benefiting from familiarity and potentially stronger local market performance, limits global diversification. Expanding into developed and emerging markets outside of North America could enhance returns and reduce risk through geographical diversification.

Market capitalization Info

  • Mega-cap
    41%
  • Mid-cap
    29%
  • Large-cap
    20%
  • Small-cap
    9%
  • Micro-cap
    1%

The portfolio's market capitalization spread, with a dominant focus on mega and medium-cap stocks, aligns with its growth strategy but also introduces specific risks associated with these segments. Small and micro-cap stocks, though riskier, can offer diversification benefits and the potential for outsized returns. A more balanced cap allocation could improve the portfolio's risk-adjusted performance.

Redundant positions Info

  • iShares Morningstar Mid-Cap Growth ETF
    Vanguard Small-Cap Growth Index Fund ETF Shares
    High correlation

The high correlation between the mid-cap growth and small-cap growth ETFs suggests redundancy, diminishing the portfolio's diversification benefits. Identifying and eliminating overlapping investments can enhance the portfolio's efficiency, ensuring that each asset contributes uniquely to the overall 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 could benefit from an optimization process focused on reducing highly correlated assets to improve diversification without sacrificing growth potential. Utilizing the Efficient Frontier concept could help in achieving the best possible risk-return ratio by adjusting the asset allocation, considering the portfolio's current emphasis on growth stocks.

Dividends Info

  • iShares Morningstar Mid-Cap Growth ETF 0.80%
  • Invesco S&P 500® Equal Weight ETF 1.60%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Small-Cap Growth Index Fund ETF Shares 0.50%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 0.75%

The portfolio's overall dividend yield of 0.75% reflects its growth orientation, as growth stocks typically reinvest earnings rather than pay dividends. However, dividends can provide a steady income stream and contribute to total return, particularly in volatile or down markets. Considering assets with higher dividend yields could offer a balance between growth and income.

Ongoing product costs Info

  • iShares Morningstar Mid-Cap Growth ETF 0.06%
  • Invesco S&P 500® Equal Weight ETF 0.20%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Small-Cap Growth Index Fund ETF Shares 0.07%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.07%

The portfolio's total expense ratio (TER) of 0.07% is impressively low, enhancing net returns over the long term. Keeping costs minimal is crucial in maximizing investment growth, especially in a growth-focused strategy where every percentage point of return counts. This cost efficiency is a strong aspect of the portfolio's construction.

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