A growth-focused portfolio with a strategic mix of sector ETFs and moderate global exposure

Report created on Jul 20, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is composed of a variety of sector-specific ETFs, each contributing to a balanced yet sector-focused investment strategy. The inclusion of diverse sectors such as Materials, Consumer Staples, Financials, Industrials, and Utilities, alongside broader market ETFs like the Vanguard Total Stock Market and S&P 500 Growth Index Fund, indicates a deliberate approach to capture growth across the economy. The presence of a single international ETF suggests a cautious approach to global diversification. This composition reflects a strategy that seeks to balance sector-specific growth opportunities with the stability offered by broad market exposure.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 12.57% and a maximum drawdown of -35.32%, the portfolio has demonstrated resilience and growth potential. The performance, characterized by significant returns on specific days, underscores the impact of market volatility and timing on investments. Comparing this to benchmark indices can provide context; however, the portfolio's diversified yet sector-specific approach appears to have navigated market fluctuations effectively, delivering strong returns.

Projection Info

Using Monte Carlo simulation, which projects future performance based on historical data, the portfolio shows a wide range of potential outcomes. While historical performance is not a guaranteed indicator of future returns, the simulation's optimistic median return of 353.6% suggests potential for significant growth. However, investors should remain cautious, as the simulation also indicates possible lower-end outcomes.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily weighted towards stocks (99%), with a minimal cash reserve (1%). This allocation is consistent with a growth-oriented strategy, aiming for higher returns at the cost of increased volatility. Diversification across multiple sectors within the stock asset class helps mitigate some risk, but the minimal cash holding limits flexibility in market downturns.

Sectors Info

  • Financials
    18%
  • Industrials
    15%
  • Technology
    14%
  • Consumer Staples
    13%
  • Utilities
    12%
  • Basic Materials
    11%
  • Consumer Discretionary
    7%
  • Health Care
    4%
  • Telecommunications
    4%
  • Real Estate
    2%
  • Energy
    1%

Sector allocation reveals a strategic emphasis on Financial Services, Industrials, Technology, and Consumer Defensive sectors, with lesser exposure to Healthcare, Communication Services, and Energy. This distribution suggests a focus on sectors believed to offer growth potential or stability, though it may benefit from reassessing exposure to underrepresented sectors to enhance diversification and capture emerging opportunities.

Regions Info

  • North America
    89%
  • Europe Developed
    5%
  • Japan
    2%
  • Asia Emerging
    2%
  • Asia Developed
    1%
  • Australasia
    1%

The geographic allocation is predominantly North American (89%), with modest exposure to developed Europe, Japan, and emerging Asian markets. This concentration in North America, while potentially capitalizing on the robust U.S. market, may limit global diversification benefits. Increasing exposure to emerging markets and underrepresented regions could offer additional growth avenues and risk mitigation.

Market capitalization Info

  • Mid-cap
    35%
  • Large-cap
    31%
  • Mega-cap
    24%
  • Small-cap
    7%
  • Micro-cap
    2%

The market capitalization breakdown illustrates a balanced approach, with allocations to medium (35%), big (31%), and mega-cap (24%) stocks, supplemented by smaller positions in small and micro-cap stocks. This spread across cap sizes supports diversification and the potential for capturing growth in various market segments, from established giants to emerging players.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Vanguard S&P 500 Growth Index Fund ETF Shares
    High correlation

The high correlation between the Vanguard Total Stock Market and S&P 500 Growth Index Fund ETF Shares indicates overlap in holdings, which may limit the portfolio's diversification benefits. Identifying and reducing such overlaps can enhance the portfolio's risk-adjusted returns by ensuring each holding contributes uniquely to the portfolio's performance.

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 an opportunity for optimization by addressing highly correlated assets. By diversifying further within or across asset classes, the investor can achieve a more efficient risk-return profile. This optimization should consider the portfolio's growth objectives while enhancing its resilience against market volatility.

Dividends Info

  • Vanguard Materials Index Fund ETF Shares 1.70%
  • Vanguard Consumer Staples Index Fund ETF Shares 2.30%
  • Vanguard Financials Index Fund ETF Shares 1.70%
  • Vanguard Industrials Index Fund ETF Shares 1.10%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.50%
  • Vanguard Mid-Cap Growth Index Fund ETF Shares 0.60%
  • Vanguard Utilities Index Fund ETF Shares 2.80%
  • Vanguard ESG International Stock 2.90%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 1.64%

The portfolio's average dividend yield of 1.64% contributes to its total return, balancing growth with income generation. While some ETFs offer higher yields, reflecting their sectors' characteristics, the overall yield aligns with a growth-focused strategy where dividends play a supporting, rather than primary, role in wealth accumulation.

Ongoing product costs Info

  • Vanguard Materials Index Fund ETF Shares 0.10%
  • Vanguard Consumer Staples Index Fund ETF Shares 0.10%
  • Vanguard Financials Index Fund ETF Shares 0.10%
  • Vanguard Industrials Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.10%
  • Vanguard Mid-Cap Growth Index Fund ETF Shares 0.07%
  • Vanguard Utilities Index Fund ETF Shares 0.10%
  • Vanguard ESG International Stock 0.12%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.09%

With an average Total Expense Ratio (TER) of 0.09%, the portfolio benefits from low costs, enhancing net returns over time. This cost efficiency is crucial in maximizing long-term investment growth, demonstrating the portfolio's strategic selection of low-cost ETFs.

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