A growth-oriented portfolio with a strong focus on US equities and low costs

Report created on Jul 19, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily invested in three Vanguard ETFs, with each holding constituting roughly a third of the total assets. It's focused on the stock market, with a significant emphasis on US equities, as indicated by the 88% allocation to North America. The portfolio is classified as moderately diversified, though its diversification is primarily across sectors within the stock market, rather than across different asset classes or geographies.

Growth Info

The portfolio has demonstrated a robust Compound Annual Growth Rate (CAGR) of 13.13%, with a maximum drawdown of -34.40%. This performance suggests a strong growth trajectory, albeit with significant volatility, as indicated by the substantial drawdown. The days contributing to 90% of returns are notably few, emphasizing the impact of high-performing days on overall performance.

Projection Info

Using Monte Carlo simulation, the portfolio's future performance projects a wide range of outcomes, with the median scenario suggesting a 447.2% return. This analysis, while based on historical data, underscores the potential for substantial growth but also highlights the inherent uncertainty in investing, reminding investors that past performance is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is almost entirely in stocks (99%), with a minimal cash holding. This concentration in a single asset class maximizes exposure to stock market growth but also increases susceptibility to market volatility. Diversifying across different asset classes could provide a buffer during stock market downturns.

Sectors Info

  • Technology
    29%
  • Financials
    15%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Industrials
    9%
  • Telecommunications
    9%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    3%
  • Real Estate
    3%
  • Basic Materials
    2%

Sector allocation is broadly diversified within the stock component, led by technology, financial services, and consumer cyclicals. This sectoral distribution reflects a growth-focused strategy but also carries the risk of volatility, particularly in the technology sector, which can be sensitive to market changes.

Regions Info

  • North America
    88%
  • Europe Developed
    5%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%
  • Australasia
    1%

Geographic exposure is heavily skewed towards North America, with minor allocations to developed Europe, Asia, and other regions. This concentration in the US market leverages its historical strength but also exposes the portfolio to regional economic and political risks, potentially limiting the benefits of global diversification.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    32%
  • Mid-cap
    19%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio leans towards mega and large-cap stocks, which tend to be more stable than smaller companies but might offer lower growth potential in the long run. Medium, small, and micro-cap stocks, although riskier, could provide higher growth opportunities and further diversification.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Vanguard Total World Stock Index Fund ETF Shares
    Vanguard S&P 500 ETF
    High correlation

The high correlation among the three Vanguard ETFs suggests redundancy in the portfolio, limiting the effectiveness of diversification. Since these funds have overlapping holdings, particularly in US equities, their movements are likely to be very similar, reducing the potential for risk mitigation through diversification.

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.

Optimizing the portfolio involves addressing the high correlation between holdings. Reducing overlap by diversifying across less correlated assets or sectors could enhance risk-adjusted returns. While the current allocation has performed well, there's potential to improve the portfolio's efficiency by adjusting the asset mix to achieve a better balance between risk and return.

Dividends Info

  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 1.37%

The dividend yields from the ETFs contribute to the portfolio's total return, offering a steady income stream in addition to potential capital gains. With an overall yield of 1.37%, dividends provide a modest buffer against volatility, though the primary focus remains on growth through capital appreciation.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.04%

The portfolio benefits from low total expense ratios (TER) across the ETFs, averaging 0.04%. Low costs are crucial for enhancing long-term returns, as they minimize the drag on performance. This cost efficiency is a significant strength, particularly in a growth-oriented portfolio.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey