A growth-oriented portfolio with a strong foundation in global equities and low costs

Report created on Jun 21, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards equities, with a significant majority in the iShares Core S&P Total U.S. Stock Market ETF, complemented by substantial allocations in international developed and emerging markets. This composition underscores a growth-focused approach, leveraging the broad diversification across major global markets. The emphasis on equities, particularly with such a high percentage in the U.S. stock market, aligns with the portfolio's growth classification, aiming to capitalize on the long-term upward trend of global equities.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.00%, which is commendable. The maximum drawdown of -34.43% indicates significant volatility, typical of equity-heavy portfolios. The days contributing to 90% of returns being concentrated in just 20 days highlights the unpredictable nature of stock market gains, emphasizing the importance of staying invested through market cycles for capturing peak growth days.

Projection Info

Using a Monte Carlo simulation, the portfolio's forward projection offers a wide range of outcomes, with a key 50th percentile growth expectation at 239.8% over the simulation period. This method, while useful for estimating potential future performance based on historical data, cannot guarantee future results due to market unpredictability. However, the high number of simulations with positive returns (949 out of 1,000) suggests a strong likelihood of future portfolio growth.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, indicating a high-risk, high-reward strategy. This singular focus on equities enhances growth potential but also increases volatility and risk. Diversification across different asset classes, such as bonds or real estate, could mitigate risk while still offering reasonable growth opportunities, especially for investors with lower risk tolerance.

Sectors Info

  • Technology
    24%
  • Financials
    18%
  • Industrials
    12%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Basic Materials
    4%
  • Energy
    4%
  • Real Estate
    3%
  • Utilities
    3%

The sectoral allocation shows a strong bias towards technology and financial services, which are sectors known for their growth potential but also for their volatility. Industrials, consumer cyclicals, and healthcare also have significant representations, providing a good balance between cyclical and defensive sectors. This mix supports the portfolio's growth objectives while offering some level of protection against market downturns.

Regions Info

  • North America
    62%
  • Europe Developed
    17%
  • Japan
    6%
  • Asia Emerging
    6%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic exposure is well-spread across North America, Europe, and emerging markets in Asia, providing a broad diversification benefit. However, the heavy weighting towards North America (62%) reflects a home bias, which is common but could limit exposure to potential growth in other regions. Increasing allocations to underrepresented areas might offer enhanced diversification and access to faster-growing economies.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    31%
  • Mid-cap
    19%
  • Small-cap
    5%
  • Micro-cap
    1%

The focus on mega and big-cap stocks (74% combined) suggests a preference for stability and lower volatility associated with larger, well-established companies. However, the inclusion of medium, small, and micro-cap stocks, although in smaller proportions, introduces growth potential and diversification benefits, balancing the portfolio's risk and return characteristics.

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 a well-considered approach to balancing risk and return, aiming for optimal growth within a defined risk profile. While the Efficient Frontier can provide insights into potential allocation adjustments for improved risk-return characteristics, the portfolio already appears to be positioned effectively for its growth objectives and risk tolerance.

Dividends Info

  • iShares Core MSCI International Developed Market 1.40%
  • iShares Core MSCI Emerging Markets ETF 2.00%
  • iShares Core S&P Total U.S. Stock Market ETF 1.00%
  • Weighted yield (per year) 1.23%

The dividend yields from the different ETFs contribute to the portfolio's total yield of 1.23%, adding a steady income stream on top of potential capital gains. This income can be particularly beneficial during market downturns or periods of slow growth, providing a cushion against volatility and enhancing total returns over time.

Ongoing product costs Info

  • iShares Core MSCI International Developed Market 0.04%
  • iShares Core MSCI Emerging Markets ETF 0.09%
  • iShares Core S&P Total U.S. Stock Market ETF 0.03%
  • Weighted costs total (per year) 0.04%

With an average Total Expense Ratio (TER) of just 0.04%, the portfolio benefits from exceptionally low costs, maximizing the potential for net returns. Low costs are crucial for long-term investment success, as they compound positively over time, significantly impacting overall portfolio growth.

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