A growth-focused portfolio with a strong emphasis on technology and emerging markets
Report created on May 6, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 30.00% -
SC Schwab Emerging Markets Equity ETF
SCHE - US8085247067 20.00% -
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 20.00% -
BO Global X Robotics & Artificial Intelligence ETF
BOTZ - US37954Y7159 15.00% -
FS Fidelity Total Market Index Fund
FSKAX - US3159116934 15.00%
This portfolio is characterized by a significant allocation towards ETFs, with a 30% position in a Vanguard S&P 500 ETF, highlighting a strong foundation in US equities. The inclusion of a 20% allocation to both the Schwab Emerging Markets Equity ETF and the Vanguard Total World Stock Index Fund ETF Shares demonstrates a strategic emphasis on global diversification. The specific focus on sectors like technology, through a 15% allocation to the Global X Robotics & Artificial Intelligence ETF, alongside a general market fund, the Fidelity Total Market Index Fund, suggests a balanced approach between sector-specific growth potential and broad market exposure.
Growth
With a historical Compound Annual Growth Rate (CAGR) of 12.26% and a maximum drawdown of -33.50%, the portfolio has shown resilience and growth over time. The days contributing to 90% of returns (21 days) indicate that the portfolio's performance is subject to significant short-term fluctuations, which is typical for growth-oriented investments. These metrics should be compared against relevant benchmarks to evaluate performance adequately.
Projection
The Monte Carlo simulation, utilizing 1,000 scenarios, offers a range of potential outcomes, from a 25.8% increase at the 5th percentile to a 490.9% increase at the 67th percentile. This wide range underscores the inherent volatility and the potential for substantial growth within the portfolio. However, it's essential to remember that such simulations are based on historical data, and past performance is not indicative of future results.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's asset allocation is heavily skewed towards stocks (99%), with a minimal cash reserve (1%). This allocation aligns with the portfolio's growth profile but comes with higher volatility and risk. Diversification across different asset classes, such as bonds or real estate, could provide a buffer against market fluctuations.
Sectors
- Technology 29%
- Financials 15%
- Industrials 13%
- Health Care 10%
- Consumer Discretionary 8%
- Telecommunications 8%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 3%
- Utilities 2%
- Real Estate 2%
- Consumer Discretionary 2%
The sector allocation reveals a strong emphasis on technology (29%), financial services (15%), and industrials (13%), which are sectors that can offer high growth but also come with increased volatility. The underrepresentation of traditionally defensive sectors like utilities and consumer defensive indicates a portfolio strategy that favors potential returns over risk mitigation.
Regions
- North America 65%
- Asia Emerging 14%
- Japan 6%
- Europe Developed 5%
- Asia Developed 5%
- Africa/Middle East 3%
- Latin America 2%
Geographic distribution shows a heavy bias towards North America (65%), with significant exposure to emerging markets in Asia (14%) and a modest presence in developed markets outside of the U.S. This geographic spread supports diversification, but the portfolio may benefit from increased exposure to underrepresented regions to enhance global diversification further.
Market capitalization
- Mega-cap 43%
- Large-cap 31%
- Mid-cap 17%
- Small-cap 6%
- Micro-cap 1%
The portfolio's market capitalization breakdown, with a focus on mega (43%) and big (31%) cap stocks, suggests a bias towards more established, potentially less volatile companies. However, the inclusion of medium (17%), small (6%), and micro (1%) cap stocks introduces growth potential, albeit with increased risk.
Redundant positions
-
High correlationVanguard S&P 500 ETFFidelity Total Market Index FundVanguard Total World Stock Index Fund ETF Shares
The high correlation observed among the Vanguard S&P 500 ETF, Fidelity Total Market Index Fund, and Vanguard Total World Stock Index Fund ETF Shares indicates redundancy, which could limit diversification benefits. Reducing overlap by reallocating assets could enhance the portfolio's risk-adjusted returns.
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 asset allocation suggests room for optimization, particularly by addressing the overlap among highly correlated assets. Focusing on diversification not just across sectors and geographies but also across asset classes and market capitalizations could enhance the portfolio's efficiency, potentially moving it closer to the Efficient Frontier, where the risk-return trade-off is optimized.
Dividends
- Global X Robotics & Artificial Intelligence ETF 0.10%
- Fidelity Total Market Index Fund 1.10%
- Schwab Emerging Markets Equity ETF 2.80%
- Vanguard S&P 500 ETF 1.40%
- Vanguard Total World Stock Index Fund ETF Shares 1.90%
- Weighted yield (per year) 1.54%
The portfolio's average dividend yield of 1.54% contributes to its total return, balancing the growth focus with income generation. The varying yields across different ETFs and funds highlight a strategic approach to capturing growth while still providing a stream of income.
Ongoing product costs
- Global X Robotics & Artificial Intelligence ETF 0.68%
- Schwab Emerging Markets Equity ETF 0.11%
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.15%
The portfolio's overall expense ratio (TotalTER) of 0.15% is relatively low, which is beneficial for long-term growth as it minimizes the drag on performance. However, the Global X Robotics & Artificial Intelligence ETF's higher individual cost (0.68%) warrants consideration against its performance and strategic fit within the portfolio.
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