Growth-focused portfolio with a strong tilt towards technology and US markets

Report created on Jul 6, 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 predominantly invested in US equities, with a significant allocation towards technology through ETFs. The SPDR® Portfolio S&P 500 and Invesco NASDAQ 100 ETFs together constitute 70% of the portfolio, indicating a strong bias towards large-cap and tech stocks. The inclusion of the Vanguard Total International Stock Index Fund ETF introduces global exposure, albeit with a lower weighting. The Avantis® U.S. Small Cap Value ETF adds diversity by targeting value stocks in the small-cap range. This composition suggests a growth-oriented strategy, albeit with concentrated exposure to certain sectors and geographies.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 15.13%, with a maximum drawdown of -26.53%. This performance is indicative of the growth potential inherent in tech-heavy and large-cap focused portfolios. However, the drawdown figure highlights the volatility and risk associated with such a strategy. Days contributing to 90% of returns being limited to 19 suggests significant returns are concentrated in short bursts, underscoring the importance of staying invested during volatile periods.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, show a wide range of potential future values for this portfolio. With 986 out of 1,000 simulations yielding positive returns, there's a high likelihood of future growth. However, the broad range from the 5th to 67th percentiles underscores the uncertainty and risk involved. These projections are useful for understanding potential volatility but should not be seen as guarantees due to the limitations of historical data.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily skewed towards stocks (99%), with a minimal cash reserve (1%). This allocation aligns with its growth profile but comes with higher volatility and risk. The lack of diversification into other asset classes like bonds or real estate limits the portfolio's ability to hedge against stock market downturns. Considering the portfolio's growth focus, this allocation is appropriate, but investors should be aware of the increased risk.

Sectors Info

  • Technology
    33%
  • Financials
    13%
  • Consumer Discretionary
    12%
  • Telecommunications
    10%
  • Industrials
    9%
  • Health Care
    7%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Technology, financial services, and consumer cyclicals are the most heavily represented sectors, aligning with the portfolio's growth orientation. The substantial technology weighting, in particular, may lead to higher volatility, especially during market corrections or when interest rates rise. While this sectoral allocation supports the portfolio's growth objectives, it also increases susceptibility to sector-specific downturns. Diversifying into more defensive sectors could reduce volatility without significantly compromising growth potential.

Regions Info

  • North America
    80%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Latin America
    1%
  • Africa/Middle East
    1%

With 80% of assets in North America, this portfolio is heavily weighted towards the US market, reflecting a home bias that is common among US investors. While this concentration has historically provided strong returns, it also exposes the portfolio to regional economic and political risks. The modest allocations to developed Europe, emerging Asia, and other regions offer some international diversification, but increasing exposure to emerging markets could enhance growth prospects and reduce geographic concentration risk.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    30%
  • Mid-cap
    14%
  • Small-cap
    6%
  • Micro-cap
    5%

The portfolio's market capitalization breakdown—44% mega, 30% big, 14% medium, 6% small, and 5% micro—indicates a preference for larger companies, which are typically less volatile than their smaller counterparts. This allocation supports the portfolio's growth strategy while mitigating some risk. However, the relatively small allocation to small and micro-cap stocks limits potential 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.

Given the portfolio's current allocation and performance, there's potential for optimization towards the Efficient Frontier, which represents the best possible risk-return ratio. Adjusting allocations to reduce concentration in certain sectors or geographies could improve diversification and risk management. However, any changes should be carefully considered to maintain alignment with the growth objectives and risk tolerance.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Invesco NASDAQ 100 ETF 0.50%
  • SPDR® Portfolio S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.36%

The portfolio's overall dividend yield of 1.36% reflects a balance between growth investments and income generation. While the focus on growth-oriented ETFs naturally leads to a lower yield, the dividends can provide a modest income stream and potential for reinvestment. Investors looking for higher income might consider increasing allocations to higher-yielding assets, though this could shift the portfolio's risk-return profile.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco NASDAQ 100 ETF 0.15%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.09%

The portfolio's total expense ratio (TER) of 0.09% is impressively low, enhancing its long-term return potential by minimizing cost drag. This efficiency is particularly beneficial in a growth-oriented strategy where even small differences in costs can have significant impacts over time. The low-cost structure is a strong aspect of this portfolio, highlighting the benefits of selecting cost-effective ETFs.

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