A growth-focused portfolio with heavy US stock market exposure and minimal international and bond allocations
Report created on Jun 14, 2025Risk profile
5/7
Diversification profile
3/5
Positions
-
VT Vanguard Total Stock Market Index Fund Admiral Shares
VTSAX - US9229087286 90.00% -
VT VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES
VTIAX - US9219098186 4.00% -
VB Vanguard Total Bond Market Index Fund Admiral Shares
VBTLX - US9219376038 3.00% -
VS VANGUARD SMALL-CAP VALUE INDEX FUND ADMIRAL SHARES
VSIAX - US9219376863 3.00%
This portfolio is heavily weighted towards the US stock market, comprising 90% of the portfolio through the Vanguard Total Stock Market Index Fund Admiral Shares. The remaining allocations are modest, with 4% in international stocks, 3% in US bonds, and 3% in US small-cap value stocks. This composition suggests a growth-oriented strategy with a strong bias towards domestic equities and a limited buffer against market volatility through bonds.
Growth
Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.82%, with a maximum drawdown of -34.44%. These figures indicate robust growth but also highlight significant volatility, as evidenced by the steep drawdown. The days contributing 90% of returns being concentrated in just 27.0 days further underscores the portfolio's susceptibility to short-term market movements.
Projection
Using a Monte Carlo simulation, which projects future performance based on historical data, the portfolio shows a wide range of outcomes. The median projection suggests a 166.9% return, with a 5th percentile outcome of -9.1%, indicating potential for loss in the worst-case scenarios. While these projections offer a glimpse into potential future performance, they're inherently uncertain and should be viewed as one of many tools in decision-making.
Asset classes
- Stocks 96%
- Bonds 3%
- Cash 1%
The asset class distribution, with 96% in stocks and 3% in bonds, underscores the portfolio's aggressive growth stance. This high equity exposure maximizes potential returns but also increases risk, especially in market downturns. The minimal bond allocation offers limited diversification benefits, which could be a concern during equity market volatility.
Sectors
- Technology 28%
- Financials 14%
- Health Care 11%
- Consumer Discretionary 10%
- Industrials 9%
- Telecommunications 8%
- Consumer Staples 6%
- Energy 3%
- Real Estate 3%
- Utilities 3%
- Basic Materials 2%
Sector allocation is concentrated in technology (28%), financial services (14%), and healthcare (11%), reflecting a typical growth-oriented approach. However, this concentration, especially in technology, might expose the portfolio to sector-specific risks, such as regulatory changes or economic downturns affecting these industries more severely than others.
Regions
- North America 93%
- No data 3%
- Europe Developed 2%
- Asia Emerging 1%
- Japan 1%
Geographically, the portfolio is heavily skewed towards North America (93%), with minimal exposure to international markets. This concentration in a single region can amplify risks related to geopolitical events or economic downturns in the US. Diversifying internationally could mitigate some of these risks and tap into growth opportunities in other regions.
Market capitalization
- Mega-cap 39%
- Large-cap 29%
- Mid-cap 19%
- Small-cap 8%
- Micro-cap 2%
The market capitalization breakdown shows a preference for large companies (mega 39%, big 29%), which are typically more stable but may offer lower growth potential compared to smaller companies. The small (8%) and micro (2%) cap allocations add potential for higher returns but also higher volatility.
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.
Considering the Efficient Frontier, there's room for optimization to achieve a better risk-return ratio. Adjusting the asset allocation to introduce more diversification could enhance returns for the same level of risk or reduce risk without significantly compromising returns. This strategy might involve increasing international exposure or introducing other asset classes.
Dividends
- Vanguard Total Bond Market Index Fund Admiral Shares 3.80%
- VANGUARD SMALL-CAP VALUE INDEX FUND ADMIRAL SHARES 2.20%
- VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 2.80%
- Vanguard Total Stock Market Index Fund Admiral Shares 1.30%
- Weighted yield (per year) 1.46%
The overall dividend yield of the portfolio is relatively low at 1.46%, reflecting the growth-focused nature of the asset allocation. While dividends contribute to total returns, the primary return driver in this portfolio appears to be capital appreciation rather than income generation.
Ongoing product costs
- Vanguard Total Bond Market Index Fund Admiral Shares 0.04%
- VANGUARD SMALL-CAP VALUE INDEX FUND ADMIRAL SHARES 0.07%
- VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 0.09%
- Vanguard Total Stock Market Index Fund Admiral Shares 0.04%
- Weighted costs total (per year) 0.04%
The portfolio benefits from low costs, with a Total Expense Ratio (TER) averaging 0.04%. This efficient cost structure supports better long-term performance by minimizing the drag on returns, a crucial factor for growth-oriented portfolios.
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