A growth-oriented portfolio with a strong foundation in global equities and minimal costs
Report created on Jul 31, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 80.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00%
This portfolio is structured with an 80% allocation to the Vanguard Total Stock Market Index Fund ETF Shares and a 20% allocation to the Vanguard Total International Stock Market Index Fund ETF Shares. This composition reflects a growth-oriented strategy, heavily weighted towards the US market, which constitutes 81% of the geographic asset allocation. The remaining 20% provides exposure to international markets, offering a balance between domestic and global investments. The focus on ETFs suggests a preference for broad market exposure and cost efficiency, aligning with the portfolio's low total expense ratio (TER) of 0.03%.
Growth
Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.80%, with a maximum drawdown of -34.72%. This performance indicates a strong growth trajectory, albeit with significant volatility, as evidenced by the substantial drawdown. The days contributing to 90% of the returns being limited to just 28 suggests that the portfolio's gains are concentrated in short, robust market rallies, a characteristic often seen in growth-oriented investments.
Projection
Monte Carlo simulations, which project future performance based on historical data, show a wide range of outcomes with a median increase of 272.4%. While 980 out of 1,000 simulations resulted in positive returns, indicating a high probability of future gains, investors should be mindful that these projections are inherently uncertain and do not guarantee future results.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio is almost entirely invested in stocks (99%), with a minimal cash holding (1%). This asset class allocation underscores the portfolio's growth focus but also implies higher volatility and risk, particularly in market downturns. The lack of diversification into bonds or other asset classes may limit the portfolio's ability to mitigate losses during stock market declines.
Sectors
- Technology 27%
- Financials 16%
- Consumer Discretionary 11%
- Industrials 10%
- Health Care 10%
- Telecommunications 8%
- Consumer Staples 6%
- Energy 3%
- Basic Materials 3%
- Real Estate 3%
- Utilities 3%
Sector allocation is heavily weighted towards technology (27%), financial services (16%), and consumer cyclicals (11%), which are sectors typically associated with higher growth but also higher volatility. This concentration could expose the portfolio to sector-specific risks, especially in tech, which can be sensitive to interest rate changes and economic cycles.
Regions
- North America 81%
- Europe Developed 8%
- Asia Emerging 3%
- Japan 3%
- Asia Developed 2%
- Australasia 1%
- Africa/Middle East 1%
The geographic allocation is heavily skewed towards North America (81%), with limited exposure to emerging markets (3% in Asia Emerging and less than 1% in Africa/Middle East and Latin America). This geographic distribution may reduce the portfolio's exposure to the volatility of emerging markets but also limits potential high-growth opportunities outside the developed world.
Market capitalization
- Mega-cap 42%
- Large-cap 31%
- Mid-cap 19%
- Small-cap 6%
- Micro-cap 2%
The portfolio's market capitalization breakdown shows a preference for larger companies (Mega 42%, Big 31%), which tend to be more stable but may offer lower growth potential compared to smaller companies. Medium-sized companies make up 19%, while small and micro-cap stocks represent only 8%, suggesting a conservative approach to growth investing.
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 allocation, there's potential for optimization towards the Efficient Frontier, aiming for the best possible risk-return ratio. This might involve diversifying across more asset classes or adjusting sector and geographic exposures to reduce volatility while maintaining or enhancing expected returns. However, any optimization should consider the investor's risk tolerance and investment horizon.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.52%
The portfolio's dividend yield stands at 1.52%, with the international component contributing a higher yield (2.80%) compared to the domestic ETF (1.20%). While not the focus of a growth-oriented strategy, dividends can provide a steady income stream and contribute to total return, particularly in volatile or bear markets.
Ongoing product costs
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.03%
The portfolio benefits from exceptionally low costs, with a total expense ratio of 0.03%. Low costs are crucial for long-term investment success, as they directly improve net returns. This cost efficiency is a significant strength, especially in a low-yield environment where every basis point of cost savings matters.
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