Growth-focused portfolio with high exposure to US markets and significant tech sector weighting

Report created on Aug 11, 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 structured around three major ETFs, focusing heavily on the U.S. stock market with a 40% allocation each to the Invesco S&P 500® Momentum ETF and the Vanguard Total Stock Market Index Fund ETF Shares, complemented by a 20% investment in the Vanguard Total International Stock Index Fund ETF Shares. This composition reflects a growth-oriented strategy with a broad diversification across sectors and geographies, albeit with a strong bias towards North American equities.

Growth Info

Historically, the portfolio has demonstrated a robust Compound Annual Growth Rate (CAGR) of 17.88%, with a maximum drawdown of -32.99%. This performance indicates a high growth potential but comes with significant volatility, as evidenced by the substantial drawdown. The concentration in high-momentum and total market ETFs likely contributed to these results, suggesting resilience in diverse market conditions, albeit with notable risk.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of potential outcomes. The simulations predict annualized returns of 18.06% on average, with a 5th percentile outcome of 123% growth and a median (50th percentile) outcome of 711% growth. These projections, while optimistic, should be approached with caution as they are based on past performance, which is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's nearly exclusive focus on stocks (99%) with a minimal cash holding (1%) underscores its growth orientation. This allocation to a single asset class enhances potential returns but also increases risk, lacking the risk mitigation benefits that fixed-income investments or alternative assets might provide.

Sectors Info

  • Technology
    25%
  • Financials
    18%
  • Consumer Discretionary
    12%
  • Industrials
    11%
  • Telecommunications
    11%
  • Consumer Staples
    7%
  • Health Care
    7%
  • Energy
    3%
  • Utilities
    3%
  • Real Estate
    2%
  • Basic Materials
    2%

Sector allocation is heavily weighted towards technology (25%), financial services (18%), and consumer cyclicals (12%), which are sectors often associated with higher volatility but also higher growth potential. This sector concentration aligns with the portfolio's growth objectives, though it may expose investors to sector-specific risks.

Regions Info

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

Geographically, the portfolio is significantly exposed to North America (81%), with modest allocations to developed Europe (8%) and emerging Asian markets (3%). This geographic distribution supports the portfolio's growth strategy but may limit global diversification benefits, potentially increasing vulnerability to region-specific economic downturns.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    31%
  • Mid-cap
    16%
  • Small-cap
    3%
  • Micro-cap
    1%

The market capitalization breakdown, with a focus on mega (47%) and big (31%) cap stocks, suggests a preference for established, large-scale companies likely to offer stability and steady growth. However, the relatively smaller allocation to medium, small, and micro-cap stocks may limit exposure to high-growth opportunities in these segments.

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 current allocation appears well-suited for growth, but there's room to optimize for risk versus return using the Efficient Frontier concept. This might involve adjusting the asset allocation to achieve a more favorable balance between expected returns and portfolio volatility, potentially by incorporating assets with lower correlation to the existing holdings.

Dividends Info

  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.28%

The portfolio's dividend yield averages 1.28%, with the highest yield coming from the Vanguard Total International Stock Index Fund ETF Shares at 2.80%. While not the primary focus, dividends contribute to the portfolio's total return, offering a modest income stream in addition to capital appreciation.

Ongoing product costs Info

  • Invesco S&P 500® Momentum ETF 0.13%
  • 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) 0.07%

With a total expense ratio (TER) of 0.07%, the portfolio benefits from relatively low costs, enhancing net returns over the long term. Low-cost ETFs are a prudent choice for growth-oriented investors looking to maximize the compounding effect of their investments.

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