A growth-focused portfolio with a strong emphasis on US and technology stocks

Report created on Jul 30, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is primarily composed of two ETFs, with an 80% allocation to the Vanguard Total Stock Market Index Fund ETF Shares and a 20% allocation to the Vanguard Total International Stock Index Fund ETF Shares. This structure highlights a significant tilt towards US equities, given the heavy weighting in the Total Stock Market ETF. The diversification is broad, spanning multiple sectors and geographic regions, albeit with a strong domestic focus. This setup aligns with a growth-oriented investment strategy, leveraging the expansive potential of the US market while maintaining some international exposure for global diversification.

Growth Info

Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 12.83%, with a maximum drawdown of -34.72%. These figures suggest a robust growth trajectory with periods of significant volatility. The days contributing most to returns indicate that a few key periods have driven the majority of performance, a common characteristic in growth-focused investments. This performance must be viewed within the context of overall market conditions during the period analyzed, acknowledging that past success does not guarantee future results.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of possible outcomes, project an annualized return of 11.58% for this portfolio. While the simulations suggest a generally positive outlook, with a significant majority of simulations (973 out of 1,000) resulting in positive returns, they also underscore the inherent uncertainty and risk in investing. These projections are useful for setting expectations but should be interpreted with caution, as they cannot account for unforeseen market shifts.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's assets are almost entirely in stocks (99%), with a minimal cash holding (1%). This allocation underscores the portfolio's growth focus but also its exposure to market volatility. Stocks, while offering higher potential returns, also come with increased risk, particularly in short-term market movements. A minimal cash reserve offers liquidity but does little to buffer against market downturns, emphasizing the importance of a long-term investment horizon for this strategy.

Sectors Info

  • Technology
    27%
  • Financials
    16%
  • Consumer Discretionary
    11%
  • Industrials
    10%
  • Health Care
    10%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    3%
  • Utilities
    3%

Sector allocation is heavily weighted towards technology (27%), financial services (16%), and consumer cyclicals (11%), reflecting a bet on sectors often associated with growth but also higher volatility. The significant technology weighting, in particular, may drive performance in innovation-led market phases but also exposes the portfolio to sector-specific downturns. Balancing sector exposures can mitigate risk while still capturing growth opportunities in these dynamic sectors.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographic allocation is predominantly North American (81%), with modest exposure to developed Europe (8%) and emerging Asian markets (3%). This geographic distribution supports the portfolio's growth orientation but suggests a potential underutilization of international diversification benefits. Expanding international exposure, especially to emerging markets, could offer additional growth avenues and risk mitigation through geographic diversification.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    31%
  • Mid-cap
    19%
  • Small-cap
    6%
  • Micro-cap
    2%

The market capitalization breakdown shows a preference for larger companies (Mega 42%, Big 31%), which is consistent with the portfolio's growth and stability objectives. While large-cap stocks tend to be less volatile than their smaller counterparts, the relatively lower allocation to small (6%) and micro (2%) caps may limit potential high-growth opportunities in these segments. Considering a slight increase in exposure to smaller market caps could enhance growth prospects, albeit with added volatility.

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.

Considering the Efficient Frontier, the portfolio's current allocation between US and international stocks appears well-tuned for its growth objectives, balancing risk and return effectively. However, optimizing for the best possible risk-return ratio might involve reevaluating sector concentrations and geographic exposure to ensure the portfolio is not overly dependent on specific markets or sectors. Such adjustments could potentially enhance diversification without significantly compromising growth potential.

Dividends Info

  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.52%

The portfolio's dividend yield, averaging 1.52%, contributes to total returns, combining growth with income generation. The higher yield from the international fund (2.80%) versus the domestic fund (1.20%) highlights the income-generating potential of global diversification. While growth is the primary focus, dividends offer a valuable income stream and a potential buffer in market downturns.

Ongoing product costs Info

  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.03%

With exceptionally low costs (Total TER of 0.03%), the portfolio is positioned to maximize net returns over the long term. Low costs are crucial for long-term growth strategies, as they ensure that a greater portion of investment returns is retained by the investor. This cost efficiency is a significant strength of the portfolio, supporting its growth objectives.

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