A growth-oriented portfolio with a strong foundation in diversified global equities

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio is best suited for an investor with a growth-oriented mindset, moderate to high risk tolerance, and a long-term investment horizon. Ideal for those seeking to capitalize on equity markets' potential for high returns, it is designed for investors comfortable with market fluctuations and who prioritize capital appreciation over immediate income.

Positions

  • VANGUARD GROWTH INDEX FUND ADMIRAL SHARES
    VIGAX - US9229086601
    50.00%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES
    VTIAX - US9219098186
    30.00%
  • VANGUARD VALUE INDEX FUND ADMIRAL SHARES
    VVIAX - US9229086783
    10.00%
  • John Hancock Var Ins Tr Mid Cap Index Tr
    JECIX
    5.00%
  • VANGUARD SMALL-CAP VALUE INDEX FUND ADMIRAL SHARES
    VSIAX - US9219376863
    5.00%

This portfolio is predominantly invested in equities, with a 50% allocation to a growth index fund, 30% in an international stock index fund, 10% to a value index fund, and the remainder split between mid-cap and small-cap value funds. Such a composition underscores a growth-oriented strategy with a broad diversification across market capitalizations and geographic regions. This diversification is further enhanced by a balanced sector exposure, with a notable emphasis on technology.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.96%, with a maximum drawdown of -33.39%. These figures suggest a resilient performance through market cycles, with significant recoveries post-downturns. The days contributing most to returns indicate a portfolio that has benefited from sharp, positive market movements, a characteristic of growth-focused investments.

Projection Info

Utilizing Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. While historical and simulated data do not guarantee future results, these projections offer a glimpse into potential growth, with a median increase of 222.7%. Such forecasts are useful for setting expectations and preparing for various market conditions.

Asset classes Info

  • Stocks
    94%
  • Cash
    1%
  • Other
    0%
  • Not Classified
    0%

The portfolio's asset allocation is heavily skewed towards stocks (94%), with minimal positions in cash and other non-classified assets. This high equity exposure aligns with the portfolio's growth profile but also increases its volatility and risk, especially in short-term market fluctuations.

Sectors Info

  • Technology
    30%
  • Financials
    14%
  • Consumer Discretionary
    12%
  • Industrials
    9%
  • Telecommunications
    9%
  • Health Care
    7%
  • Consumer Staples
    4%
  • Basic Materials
    3%
  • Energy
    2%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation is well-diversified, with the largest holdings in technology, financial services, and consumer cyclicals. This sector spread is conducive to growth, given the technology sector's potential for innovation-driven expansion. However, it's important to monitor sector concentrations as they can introduce specific risks, such as regulatory changes or economic downturns affecting consumer spending.

Regions Info

  • North America
    67%
  • Europe Developed
    12%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Europe Emerging
    0%

Geographically, the portfolio is heavily weighted towards North America (67%), with significant allocations in developed Europe and emerging Asia. This distribution provides a good balance between the stability of developed markets and the growth potential of emerging ones, though it may benefit from increased exposure to diversify further and tap into other high-growth regions.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    26%
  • Mid-cap
    15%
  • Small-cap
    4%
  • Micro-cap
    1%

The market capitalization breakdown reveals a bias towards mega and large-cap stocks, which constitute 74% of the portfolio. This bias towards larger companies typically offers stability and lower volatility but may limit exposure to the higher growth potential of smaller caps.

Dividends Info

  • John Hancock Var Ins Tr Mid Cap Index Tr 4.50%
  • VANGUARD GROWTH INDEX FUND ADMIRAL SHARES 0.30%
  • VANGUARD SMALL-CAP VALUE INDEX FUND ADMIRAL SHARES 1.60%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 2.10%
  • VANGUARD VALUE INDEX FUND ADMIRAL SHARES 1.60%
  • Weighted yield (per year) 1.24%

The portfolio's dividend yield stands at 1.24%, with individual funds ranging from 0.30% to 4.50%. While not the primary focus of a growth-oriented strategy, dividends contribute to total returns and provide a modest income stream, which can be reinvested to compound growth.

Ongoing product costs Info

  • John Hancock Var Ins Tr Mid Cap Index Tr 0.04%
  • VANGUARD GROWTH INDEX FUND ADMIRAL SHARES 0.05%
  • VANGUARD SMALL-CAP VALUE INDEX FUND ADMIRAL SHARES 0.07%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 0.09%
  • VANGUARD VALUE INDEX FUND ADMIRAL SHARES 0.05%
  • Weighted costs total (per year) 0.06%

With a Total Expense Ratio (TER) of 0.06%, the portfolio benefits from relatively low costs, which is crucial for enhancing long-term returns. Lower costs mean more of the portfolio's gains are retained by the investor, a key factor in investment success over time.

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.

Considering the Efficient Frontier, the portfolio appears well-positioned for growth, with a risk-return profile that could potentially be optimized for even better outcomes. Adjustments to allocation could further enhance the risk-return ratio, ensuring the portfolio is not only diversified but also aligned with the most efficient performance path.

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