A growth tilted stock only portfolio with strong US focus and heavy technology exposure
Report created on Sep 17, 2024Risk profile
5/7
Diversification profile
3/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 60.00% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 20.00% -
SM VanEck Semiconductor ETF
SMH - US92189F6768 20.00%
This portfolio is built from three ETFs, all in stocks, with about 60% in a broad US index, 20% in small cap value, and 20% in semiconductors. That means most money tracks the large US market, while a meaningful slice leans into smaller value companies and a focused tech theme. Compared with a typical growth benchmark that holds more bonds and fewer niche tilts, this setup is more aggressive and more concentrated. This structure is powerful for long‑term growth, but swings can be large. Keeping this mix makes sense only if the time horizon is long and there is willingness to tolerate bigger temporary losses.
Growth
Historically, this mix produced a very strong compound annual growth rate (CAGR) of about 20.9%. CAGR is like your average speed on a long road trip, showing how much the portfolio grew per year on average if returns were smoothed. That comfortably beats typical broad stock benchmarks over long stretches. The flip side is a max drawdown near −36%, meaning at one point the portfolio was down over a third from a prior peak. That is normal for an aggressive equity strategy but emotionally hard. It’s important to remember that past performance, even when excellent, does not guarantee similar results in future markets.
Projection
The Monte Carlo analysis, which runs 1,000 random “what if” paths based on historical behavior, shows very wide possible outcomes. The median scenario ending above 1,500% suggests strong growth potential if markets behave similarly to the past, while the lower 5th percentile around 139% shows that disappointing results are still quite possible. Monte Carlo is useful because it highlights a range rather than a single forecast, but it relies heavily on past data and assumptions that may not hold. This means results are best viewed as rough weather maps, not promises. Using these ranges to set realistic expectations about volatility and timelines can help avoid panic decisions.
Asset classes
- Stocks 100%
All investable assets here are in stocks, with 0% in cash or bonds. That’s a clear growth-oriented stance and lines up with an above-average risk profile, especially for someone with a multi‑decade horizon. Compared with many blended benchmarks that might include 20–40% in bonds or cash for stability, this portfolio chooses maximum equity exposure and higher return potential instead of smoother rides. This is a perfectly valid approach for people who can handle larger ups and downs and don’t need near‑term withdrawals. Someone wanting more stability might gradually introduce a small allocation to lower‑volatility assets to soften drawdowns without completely sacrificing growth potential.
Sectors
- Technology 44%
- Financials 13%
- Consumer Discretionary 10%
- Industrials 7%
- Telecommunications 7%
- Health Care 6%
- Energy 5%
- Consumer Staples 4%
- Basic Materials 2%
- Utilities 1%
- Real Estate 1%
Sector-wise, the portfolio is heavily tilted, with roughly 44% in technology and meaningful chunks in financials, consumer cyclicals, and industrials, while defensive areas like utilities and real estate barely register. This tech tilt is a key return driver but also a major risk source, especially during periods of rising rates or regulatory pressure when growth stocks can swing sharply. Compared with broad market benchmarks, this is clearly more concentrated in one growth engine. This tilt can be very rewarding when tech outperforms, but it may lag in value‑led or commodity‑driven markets. Regularly checking whether this big tech exposure still fits personal comfort with volatility can help keep the strategy intentional instead of accidental.
Regions
- North America 96%
- Asia Developed 2%
- Europe Developed 2%
Geographically, about 96% sits in North America, with only tiny slices in developed Europe and Asia and none in emerging markets. This strong US home bias has worked well over the last decade because US stocks, especially tech, outperformed much of the world. It also means results are tightly linked to US economic and policy cycles. Compared with global benchmarks that often hold 40–50% outside the US, this is much more domestic. This alignment is okay if the goal is to ride US corporate strength, but it leaves less cushion if the US underperforms other regions. Adding a small, diversified international slice could smooth country‑specific risks over time.
Market capitalization
- Mega-cap 36%
- Large-cap 31%
- Mid-cap 12%
- Micro-cap 10%
- Small-cap 10%
By market cap, the mix includes about 36% mega caps, 31% big caps, and a healthy 32% across medium, small, and micro companies. That blend is nicely balanced relative to many large‑cap‑only benchmarks and is a genuine strength. Smaller and value‑oriented stocks can behave differently from mega caps, sometimes shining when big names stall, which can add return potential and some diversification. The dedicated small cap value fund meaningfully contributes to this. The trade‑off is that smaller companies often move more sharply in both directions. Regularly reviewing whether this tilt is still desired helps keep the portfolio aligned with comfort around sharper short‑term movements.
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.
On a risk‑return basis, this portfolio already sits in a growth‑oriented zone but might not be exactly on the Efficient Frontier. The Efficient Frontier is the set of portfolios that offer the best expected return for each level of volatility using only the current ingredients and different weightings. Here, a modeling tool might find slightly different splits between broad US exposure, small cap value, and semiconductors that either reduce risk for the same return or boost expected return for similar risk. “More efficient” doesn’t always mean “better” for every goal though; someone may still prefer the current tech tilt or simplicity, even if a mathematically smoother mix exists.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.60%
- VanEck Semiconductor ETF 0.30%
- Vanguard S&P 500 ETF 1.10%
- Weighted yield (per year) 1.04%
The total dividend yield sits around 1.04%, with the small cap value fund offering the highest payout and the semiconductor ETF the lowest. That’s in line with a growth‑tilted equity strategy: more of the return is expected from price appreciation rather than income. For someone focused on long‑term compounding rather than near‑term cash flow, this is perfectly acceptable and aligns with many growth benchmarks. Reinvesting these dividends automatically can steadily increase the share count over time, quietly boosting compounding. For investors who later shift toward income needs, introducing a modest tilt to higher‑yielding holdings could complement this base without disrupting the overall growth framework.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- VanEck Semiconductor ETF 0.35%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.14%
The weighted total expense ratio of about 0.14% is impressively low, especially given the inclusion of a more specialized semiconductor ETF and an active small cap value strategy. Costs matter because they come out every single year, and the gap compounds over decades like a slow leak in a tire. Being well below typical actively managed equity fund costs is a real strength of this setup and supports better long‑term outcomes. Keeping these low‑cost building blocks as a core and resisting frequent fund changes or expensive add‑ons can protect that advantage. Periodic checks to ensure fees stay competitive are usually enough here.
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