Growth-oriented portfolio with a strong focus on US equities and moderate international exposure

Report created on Sep 10, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards US equities, with 80% of its allocation in various forms of US stock ETFs, emphasizing large-cap growth, S&P 500 representation, and momentum strategies. The remaining 20% is split between US small-cap value and international high dividend yield equities. This composition suggests a growth-focused strategy with a tilt towards large-cap stocks, which may provide a blend of stability and growth potential. However, the heavy concentration in similar asset types and sectors, particularly technology, indicates limited diversification across different investment styles and geographies.

Growth Info

Historically, this portfolio has demonstrated a strong Compound Annual Growth Rate (CAGR) of 18.97%, albeit with a significant maximum drawdown of -34.21%. This performance is reflective of the high-growth but also the high-risk nature of the portfolio's assets. The days contributing to 90% of returns being concentrated in just 22.0 days highlight the portfolio's volatility and the importance of timing in the market. While past performance is encouraging, it's crucial to remember that it doesn't guarantee future results, especially in a market environment that can change rapidly.

Projection Info

Monte Carlo simulations, which use historical data to project potential future outcomes, suggest a wide range of possibilities for this portfolio, from a 5th percentile outcome of 105.7% to a 67th percentile outcome of 1,283.4%. While the simulations show a high likelihood of positive returns (988 out of 1,000 simulations), they also underscore the portfolio's inherent risk. Investors should consider these projections with caution, as they are based on past market behavior, which may not predict future performance accurately.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, reflecting a high-risk, high-reward strategy suited to investors with a growth-oriented risk profile. While this asset class has historically offered the potential for higher returns, it also comes with increased volatility. A lack of diversification into other asset classes such as bonds or real estate might expose the portfolio to heightened market fluctuations, suggesting the investor is comfortable with significant ups and downs in pursuit of growth.

Sectors Info

  • Technology
    31%
  • Financials
    17%
  • Consumer Discretionary
    13%
  • Telecommunications
    11%
  • Industrials
    8%
  • Health Care
    6%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    1%

Sector allocation is concentrated in technology (31%), financial services (17%), and consumer cyclicals (13%), with lesser exposures to other sectors. This concentration in cyclical sectors may lead to higher volatility, as these areas can be more sensitive to economic changes. While the heavy investment in technology aligns with recent trends of robust growth, it also increases susceptibility to sector-specific downturns. Diversifying across more sectors or increasing allocations to defensive sectors could provide a buffer during market dips.

Regions Info

  • North America
    90%
  • Europe Developed
    5%
  • Japan
    1%
  • Asia Emerging
    1%
  • Asia Developed
    1%
  • Australasia
    1%

Geographic allocation is heavily skewed towards North America (90%), with minimal exposure to international markets. This concentration benefits from the strong performance of the US market but limits global diversification. Expanding into more developed and emerging markets outside the US could help mitigate region-specific risks and tap into growth opportunities in other parts of the world.

Market capitalization Info

  • Mega-cap
    49%
  • Large-cap
    28%
  • Mid-cap
    13%
  • Small-cap
    6%
  • Micro-cap
    5%

The portfolio's market capitalization exposure is predominantly in mega (49%) and big (28%) cap stocks, with smaller allocations to medium, small, and micro caps. This skew towards larger companies may provide stability but can limit potential upsides from smaller, faster-growing firms. Considering a more balanced approach to market cap allocation could enhance diversification and growth prospects.

Redundant positions Info

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

The high correlation observed between the Schwab U.S. Large-Cap Growth ETF and the Vanguard S&P 500 ETF indicates redundancy, reducing the portfolio's diversification benefits. Both ETFs track large-cap US equities, likely leading to overlapping holdings. Reducing exposure to one of these ETFs or reallocating to assets with lower correlation could improve portfolio diversification and risk management.

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 along the Efficient Frontier could improve the risk-return ratio by adjusting asset allocations to achieve the best possible return for a given level of risk. The current overlap in highly correlated assets suggests an opportunity for reallocation to enhance diversification without necessarily increasing risk. Prioritizing assets with complementary risk-return profiles could lead to a more efficient portfolio.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 3.90%
  • Weighted yield (per year) 1.15%

The portfolio's dividend yield stands at 1.15%, with the highest yield coming from the Vanguard International High Dividend Yield Index Fund ETF Shares. While dividends contribute to total return and provide a passive income stream, the overall yield suggests a focus on capital appreciation over income generation. Investors seeking higher income might consider increasing allocations to higher-yielding assets or sectors.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value 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%
  • Vanguard International High Dividend Yield Index Fund ETF Shares 0.22%
  • Weighted costs total (per year) 0.09%

The portfolio's total expense ratio (TER) of 0.09% is impressively low, enhancing its attractiveness by minimizing the drag on returns due to costs. Keeping investment costs low is crucial for long-term performance, and this portfolio exemplifies efficient cost management. However, investors should also consider other factors such as transaction costs and tax efficiency when evaluating overall expenses.

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