Growth-oriented portfolio with a strong focus on US equities and an eye on international diversification

Report created on Oct 31, 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 weighted towards U.S. equities, with a significant emphasis on large-cap and growth stocks, as seen in the allocations to the Vanguard S&P 500 ETF, Schwab U.S. Large-Cap Growth ETF, and Invesco S&P 500® Momentum ETF. The addition of international and small-cap value ETFs introduces some diversification outside of large-cap U.S. growth stocks, but the overall exposure remains predominantly domestic. This structure suggests a strategy aiming for growth, leveraging the historical performance of large-cap equities, while attempting to mitigate risk through a modest international and small-cap presence.

Growth Info

Historical performance showcases a robust Compound Annual Growth Rate (CAGR) of 18.89%, which is impressive. The maximum drawdown indicates a significant risk during downturns, highlighting the growth-oriented nature of the portfolio. The days contributing to most returns are relatively few, pointing to the portfolio's sensitivity to market movements. Comparing this to benchmarks, investors would find the high growth potential comes with considerable volatility, a common trait for growth-focused investments.

Projection Info

Monte Carlo simulations, using historical data to forecast future outcomes, predict a wide range of potential performances, with a median increase of 882.6%. While these projections offer a positive outlook, it's crucial to remember they are based on past trends, which may not always predict future movements. The high percentile outcomes suggest strong growth potential, but the range of results also underscores the inherent uncertainty and risk in the market.

Asset classes Info

  • Stocks
    100%

The portfolio's assets are entirely in stocks, eschewing bonds, cash, or other asset classes that could offer stability during market downturns. This allocation supports the portfolio's growth orientation but increases its sensitivity to market volatility. Diversifying across different asset classes could provide a buffer against this volatility, potentially smoothing out returns over time without drastically compromising growth.

Sectors Info

  • Technology
    30%
  • Financials
    18%
  • Consumer Discretionary
    11%
  • Industrials
    11%
  • Telecommunications
    10%
  • Health Care
    6%
  • Consumer Staples
    4%
  • Basic Materials
    4%
  • Energy
    4%
  • Utilities
    2%
  • Real Estate
    1%

Sector allocation is heavily weighted towards technology and financial services, with significant positions in consumer cyclicals and industrials. This concentration in sectors known for robust growth aligns with the portfolio's overall strategy. However, it also increases susceptibility to sector-specific risks. Diversifying more evenly across sectors could reduce volatility and improve resilience against market shifts.

Regions Info

  • North America
    83%
  • Europe Developed
    9%
  • Japan
    4%
  • Australasia
    2%
  • Asia Developed
    1%
  • Africa/Middle East
    1%

Geographic allocation is predominantly in North America, with limited exposure to international markets. This concentration benefits from the strong performance of U.S. equities but limits potential gains from global diversification. Expanding international exposure, particularly in emerging markets, could offer additional growth opportunities and risk mitigation through geographic diversification.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    26%
  • Mid-cap
    16%
  • Small-cap
    9%
  • Micro-cap
    5%

The focus on mega and big-cap stocks underscores the portfolio's preference for stability and growth offered by large, established companies. However, the inclusion of small and micro-cap stocks, albeit in smaller proportions, introduces potential for higher returns, albeit with increased risk. A more balanced market cap distribution could enhance risk-adjusted returns by leveraging the growth potential of smaller companies alongside the stability of larger firms.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Schwab U.S. Large-Cap Growth ETF
    High correlation

The high correlation between the Vanguard S&P 500 ETF and Schwab U.S. Large-Cap Growth ETF indicates overlapping exposures, which could limit the diversification benefits within the portfolio. Identifying and reducing such redundancies can enhance the portfolio's efficiency by ensuring each holding contributes uniquely to diversification and potential returns.

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.

The portfolio could benefit from an optimization process focusing on reducing correlated assets to improve diversification without compromising growth potential. Employing the Efficient Frontier concept could help in identifying an optimal mix of assets that maximizes returns for a given level of risk. This approach would refine the portfolio's composition, ensuring each investment contributes to achieving the best possible risk-return balance.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.40%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Invesco S&P International Developed Momentum ETF 1.70%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 1.20%

The portfolio's overall dividend yield of 1.20% reflects a balance between growth-oriented investments, which typically offer lower dividends, and value-focused positions with higher yields. While dividends contribute to total returns, the portfolio's growth focus suggests dividends are a secondary consideration. Investors could consider whether a higher dividend yield, potentially offering more income and stability, aligns with their investment goals.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.12%

The Total Expense Ratio (TER) of 0.12% is impressively low, enhancing long-term returns by minimizing costs. This efficiency is crucial for maximizing growth, as even small differences in costs can significantly impact long-term outcomes. The portfolio's cost-effectiveness is a strong point, indicating sound management of investment expenses.

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