A focused growth portfolio with a strong emphasis on US stock market exposure
Report created on Jul 28, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 100.00%
This portfolio is entirely invested in the Vanguard Total Stock Market Index Fund ETF Shares, offering a broad exposure to the U.S. stock market. This singular asset class approach, while simple, limits diversification across different asset types. The portfolio's allocation mirrors the composition of the U.S. stock market, with significant weightings in technology, financial services, and consumer cyclicals. This concentration in one ETF, although it spans multiple sectors, presents a higher risk profile due to its lack of asset class diversification.
Growth
Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 14.08%, with a maximum drawdown of -34.99%. These figures suggest a strong performance trend, albeit with significant volatility. The days contributing to 90% of the returns being limited to 30 highlights the impact of short-term gains, which can be both an opportunity and a risk. This performance, while impressive, underscores the importance of understanding the inherent volatility and the potential for large swings in value.
Projection
Monte Carlo simulations, based on 1,000 iterations, project a wide range of outcomes with a median increase of 498.4% in portfolio value. The 5th percentile at 77.1% indicates a risk of lower returns, while the 67th percentile suggests potential for substantial growth. These projections, while optimistic, are based on historical data and cannot guarantee future performance. They serve as a useful tool for understanding potential volatility and the range of outcomes.
Asset classes
- Stocks 100%
The portfolio's exclusive investment in stocks, specifically through one ETF, provides significant exposure to the market's growth potential but also exposes it to market downturns. The absence of other asset classes such as bonds or real estate limits opportunities for risk mitigation through diversification. This singular focus on stocks aligns with a growth-oriented strategy but necessitates a higher risk tolerance.
Sectors
- Technology 31%
- Financials 14%
- Consumer Discretionary 11%
- Health Care 10%
- Telecommunications 9%
- Industrials 9%
- Consumer Staples 6%
- Energy 3%
- Real Estate 3%
- Utilities 2%
- Basic Materials 2%
Sector allocation within the ETF reflects a heavy emphasis on technology, financial services, and consumer cyclicals. This sector composition is conducive to growth but may also lead to increased volatility, especially in market downturns. The tech sector's prominence, in particular, can magnify both gains and losses. A more balanced sector distribution could provide stability during sector-specific downturns.
Regions
- North America 100%
The portfolio's geographic allocation is entirely focused on North America, specifically the U.S. This concentration benefits from the U.S. market's historical strength but lacks international diversification. Expanding geographic exposure could reduce risk by mitigating the impact of U.S.-specific economic downturns and taking advantage of growth in other regions.
Market capitalization
- Mega-cap 41%
- Large-cap 31%
- Mid-cap 19%
- Small-cap 6%
- Micro-cap 2%
The market capitalization breakdown shows a preference for mega and large-cap stocks, which typically offer stability and lower volatility compared to smaller companies. However, the inclusion of medium, small, and micro-cap stocks adds growth potential. This mix supports a growth strategy but still leans towards more established, less volatile companies.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Weighted yield (per year) 1.20%
The portfolio's dividend yield of 1.20% contributes to its total return. While not the primary focus of a growth-oriented strategy, dividends offer a source of income and can provide a buffer during market downturns. However, the relatively low yield reflects the portfolio's focus on capital appreciation over income generation.
Ongoing product costs
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Weighted costs total (per year) 0.03%
With a total expense ratio (TER) of 0.03%, the portfolio is highly cost-efficient. This low cost supports better long-term performance by minimizing the drag on returns. In the context of investment costs, this portfolio exemplifies how low-cost index funds can be an effective tool for growth-focused investors.
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