A growth-focused portfolio with high exposure to US equities and technology

Report created on Sep 3, 2025

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

Positions

This portfolio predominantly invests in US equities, with a significant allocation towards technology. The structure comprises 60% in a broad market ETF, 20% in a US large-cap growth ETF, and 20% in an international stock ETF. This composition indicates a growth-oriented strategy with a heavy reliance on the US market, which could lead to higher volatility but also offers the potential for substantial growth. The inclusion of international stocks provides some geographic diversification, though the portfolio remains heavily weighted towards North America.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 14.33% and a maximum drawdown of -34.17%, the portfolio demonstrates strong growth potential alongside significant risk. The days contributing to 90% of returns highlight the volatility and the importance of staying invested during the market's best days. Comparing these figures to a benchmark would provide further insight into performance, but the high growth rate suggests the portfolio has been successful in capitalizing on market opportunities thus far.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 498.5%. This method, while based on historical data, emphasizes the uncertainty and range of potential future portfolio values. Such projections are useful for understanding possible scenarios but should be viewed with the understanding that they cannot predict specific future market movements. The high percentage of simulations with positive returns underscores the portfolio's strong growth orientation.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The allocation is almost entirely in stocks (99%), with a minimal cash reserve (1%). This asset class distribution underpins the portfolio's growth profile and high-risk score. Stocks, particularly from the technology sector, tend to offer higher returns over the long term at the expense of increased volatility. Investors should ensure this level of risk aligns with their risk tolerance and investment horizon.

Sectors Info

  • Technology
    32%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Industrials
    9%
  • Health Care
    9%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    2%

The sectoral allocation is heavily skewed towards technology, which comprises 32% of the portfolio. This concentration in technology, alongside significant investments in financial services and consumer cyclicals, positions the portfolio to benefit from growth in these dynamic sectors. However, it also increases susceptibility to sector-specific risks. Diversifying across additional sectors could help mitigate this risk while still capturing growth opportunities.

Regions Info

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

With 81% of assets in North America and a modest allocation to developed Europe and emerging markets, the portfolio's geographic distribution reflects a strong bias towards the US market. This concentration enhances exposure to the growth potential of the US economy but also increases vulnerability to its market fluctuations. Expanding the international exposure could provide better diversification and access to growth in other regions.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    29%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown shows a preference for mega (46%) and big (29%) cap stocks, with smaller allocations to medium, small, and micro caps. This indicates a focus on established, large companies likely to offer stability and consistent growth. However, incorporating more small and micro-cap stocks could enhance potential returns, albeit with increased risk.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation between the Vanguard Total Stock Market Index Fund ETF Shares and the Schwab U.S. Large-Cap Growth ETF suggests redundancy, limiting the portfolio's diversification benefits. Diversification aims to spread risk across uncorrelated assets, so considering assets with lower correlation 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 composition on the Efficient Frontier suggests room for optimization, particularly by addressing the overlap in highly correlated assets. Removing or reducing exposure to redundant assets could improve the portfolio's diversification without necessarily sacrificing potential returns. This adjustment would aim to achieve a more efficient risk-return ratio, balancing growth potential with risk management.

Dividends Info

  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.36%

The dividend yields, ranging from 0.40% to 2.80%, contribute to the portfolio's total return. The overall yield of 1.36% is modest, reflecting the growth focus over income generation. Investors seeking higher income might consider reallocating towards assets with higher dividend yields or diversifying into income-focused asset classes.

Ongoing product costs Info

  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • 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) 0.04%

With total portfolio costs averaging 0.04%, the portfolio is efficiently managed from a cost perspective. Low costs are crucial for enhancing long-term returns, as they compound over time. This cost efficiency is a positive aspect of the portfolio, aligning with best practices for maximizing investment growth.

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