A growth-oriented portfolio with a strong focus on stocks and geographical diversity
Report created on Jul 24, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 65.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00% -
SP Invesco S&P 500® Momentum ETF
SPMO - US46138E3392 15.00%
This portfolio is heavily weighted towards equities, with a significant allocation to the Vanguard Total Stock Market Index Fund ETF Shares at 65%, followed by the Vanguard Total International Stock Index Fund ETF Shares at 20%, and the Invesco S&P 500® Momentum ETF at 15%. This composition reflects a growth-oriented strategy with a broad diversification across various sectors and geographies. The emphasis on ETFs suggests a preference for lower-cost index fund investing, which is a prudent choice for achieving broad market exposure.
Growth
Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 16.66%, with a maximum drawdown of -34.05%. The days contributing to 90% of returns number just 31, indicating that a few key days have driven the majority of the portfolio's performance. This volatility underscores the inherent risks in a growth-focused strategy but also highlights the potential for significant returns. Comparing this performance to benchmarks would be essential for context, as it appears to offer a compelling growth trajectory.
Projection
Using Monte Carlo simulations, which project future performance based on historical data, this portfolio shows a wide range of outcomes. The median (50th percentile) outcome suggests a significant increase in value, while the 5th and 67th percentiles indicate both lower and higher potential endpoints, respectively. It's crucial to note that these projections are hypothetical and subject to the limitations of past data, which may not predict future conditions accurately.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's allocation is almost entirely in stocks (99%), with a minimal cash holding (1%). This high concentration in equities is typical for growth-focused investors seeking higher returns, albeit with increased risk. The lack of diversification into other asset classes, such as bonds or real estate, could expose the portfolio to higher volatility, suggesting a review of the asset class mix could be beneficial for risk management.
Sectors
- Technology 26%
- Financials 17%
- Consumer Discretionary 11%
- Industrials 10%
- Telecommunications 9%
- Health Care 9%
- Consumer Staples 6%
- Energy 3%
- Basic Materials 3%
- Utilities 3%
- Real Estate 3%
Sector allocation is well-diversified, with technology (26%), financial services (17%), and consumer cyclicals (11%) leading. This sector spread is reflective of a growth-oriented strategy, leveraging sectors known for their potential for high returns. The heavy weighting in technology, while beneficial during bull markets, may increase volatility, suggesting a potential review for balance.
Regions
- North America 81%
- Europe Developed 8%
- Asia Emerging 3%
- Japan 3%
- Asia Developed 2%
- Australasia 1%
- Africa/Middle East 1%
Geographically, the portfolio is heavily skewed towards North America (81%), with modest allocations to Europe Developed (8%) and smaller exposures to Asia Emerging and Japan. This concentration in developed markets, particularly the U.S., aligns with the growth profile but may limit exposure to emerging market growth potential. Considering a slight increase in emerging markets could enhance diversification and potential returns.
Market capitalization
- Mega-cap 44%
- Large-cap 31%
- Mid-cap 18%
- Small-cap 5%
- Micro-cap 1%
The market capitalization breakdown shows a preference for larger companies (Mega 44%, Big 31%), which is consistent with a growth strategy focused on stability and potential for growth. Medium, small, and micro-cap stocks represent a smaller portion of the portfolio, suggesting a conservative approach towards volatility. However, increasing exposure to smaller caps could offer higher growth potential, albeit with increased risk.
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 it is positioned on the growth side of the Efficient Frontier, indicating a focus on maximizing returns for a given level of risk. While this allocation appears well-optimized for growth, investors should periodically review their risk tolerance and adjust their portfolio to ensure it remains aligned with their investment goals and risk appetite.
Dividends
- 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 2.70%
- Weighted yield (per year) 1.41%
The portfolio's dividend yield stands at 1.41%, with the highest yield from the Vanguard Total International Stock Index Fund ETF Shares. While the focus seems to be on growth rather than income, dividends contribute to total returns and provide a modest income stream. For investors seeking higher income, reallocating towards assets with higher dividend yields could be considered.
Ongoing product costs
- 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) 0.05%
With a total expense ratio (TER) of 0.05%, the portfolio benefits from low costs, which is crucial for long-term growth. The low TER of the ETFs selected is commendable, as it allows more of the investment returns to compound over time. Maintaining this focus on cost efficiency is advisable.
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