A growth-oriented portfolio with a significant tilt towards Bitcoin and international exposure
Report created on Jun 11, 2025Risk profile
5/7
Diversification profile
5/5
Positions
-
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 35.57% -
FB Fidelity Wise Origin Bitcoin Trust
FBTC - US3159481098 34.26% -
VO Vanguard S&P 500 ETF
VOO - US9229083632 30.17%
This portfolio showcases a bold allocation with 35.57% in international stocks, 34.26% in Bitcoin, and 30.17% in the S&P 500. Such a composition indicates a strong growth orientation, blending traditional equity exposure with a considerable stake in cryptocurrency. The diversification across major global markets and asset classes is commendable, though the heavy weighting in Bitcoin introduces a higher volatility profile, which is somewhat mitigated by the stabilizing presence of established equity markets.
Growth
Historically, this portfolio has exhibited a Compound Annual Growth Rate (CAGR) of 37.57%, a figure that significantly outpaces many traditional benchmarks. This high return rate is accompanied by a maximum drawdown of -20.31%, highlighting the portfolio's volatility and risk. The days contributing most to returns are remarkably few, emphasizing the impact of sharp, positive movements in Bitcoin and equity markets on overall performance. Such historical performance underscores the high-risk, high-reward nature of this investment strategy.
Projection
Monte Carlo simulations project a wide range of outcomes, with the median scenario suggesting an 8,334.3% return. This optimistic projection is based on historical data, which includes periods of exceptional growth in both the stock and cryptocurrency markets. However, it's crucial to remember that past performance is not indicative of future results, especially with assets as volatile as Bitcoin. These simulations provide a useful but limited view, emphasizing the portfolio's potential for significant growth amidst high uncertainty.
Asset classes
- Stocks 65%
- Other 34%
- Cash 1%
The portfolio's asset class distribution, with 65% in stocks and 34% in 'Other' (primarily Bitcoin), reflects a high-growth strategy. This allocation diverges from more traditional, conservative portfolios by taking on considerable risk for the potential of higher returns. The minimal cash holding enhances growth potential but reduces liquidity and increases short-term volatility. Aligning asset classes with individual risk tolerance and investment horizon is crucial for maintaining an appropriate investment strategy.
Sectors
- Technology 14%
- Financials 12%
- Industrials 8%
- Consumer Discretionary 7%
- Health Care 6%
- Telecommunications 5%
- Consumer Staples 4%
- Basic Materials 3%
- Energy 3%
- Utilities 2%
- Real Estate 2%
Sectoral allocation within this portfolio leans towards technology, financial services, and industrials, which are sectors typically associated with higher growth but also greater volatility. The technology sector's prominence is consistent with the portfolio's growth focus, given its potential for innovation-driven returns. However, the concentration in high-volatility sectors underscores the need for investors to be comfortable with significant fluctuations in portfolio value.
Regions
- North America 33%
- Europe Developed 14%
- Asia Emerging 6%
- Japan 6%
- Asia Developed 4%
- Australasia 2%
- Africa/Middle East 1%
- Latin America 1%
Geographic exposure is broadly diversified, with a significant emphasis on North America and developed European markets, complemented by positions in emerging Asian markets and Japan. This global distribution supports risk mitigation through geographic diversification, although the heavy allocation to North America reflects a common home bias. Expanding into underrepresented regions could further enhance diversification benefits and expose the portfolio to additional growth opportunities.
Market capitalization
- Mega-cap 30%
- Large-cap 21%
- Mid-cap 11%
- Small-cap 2%
The market capitalization breakdown, with a focus on mega and big cap stocks, aligns with the portfolio's growth and risk profile. These larger companies often offer more stability than their smaller counterparts, which can be beneficial in a portfolio with significant cryptocurrency exposure. However, incorporating more mid, small, or micro-cap stocks could introduce higher growth potential and further diversification, albeit with added 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.
Given the portfolio's current composition, optimizing for the Efficient Frontier could involve rebalancing between the high-risk Bitcoin position and the more stable equity holdings. This optimization seeks to achieve the best possible risk-return ratio, which may suggest reducing cryptocurrency exposure in favor of equities or diversifying into additional asset classes. However, any optimization must consider the investor's risk tolerance and investment goals.
Dividends
- Vanguard S&P 500 ETF 1.30%
- Vanguard Total International Stock Index Fund ETF Shares 2.90%
- Weighted yield (per year) 1.42%
The dividend yields from the Vanguard ETFs contribute to the portfolio's total income, providing a modest cushion against volatility. While the focus on growth minimizes the role of dividends, their steady contribution can offer a source of reinvestment or income during market downturns. Balancing growth and income, especially in a portfolio with significant cryptocurrency exposure, can help smooth out returns over time.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.03%
With exceptionally low costs for the Vanguard ETFs, the portfolio is well-positioned to maximize returns over the long term. Keeping investment costs low is a fundamental principle of successful investing, as it allows a greater portion of returns to compound. This advantage is particularly valuable in a high-growth strategy, where the impact of fees on long-term outcomes can be substantial.
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