A growth-oriented portfolio with broad diversification and moderate risk exposure

Report created on Mar 13, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is comprised of three major ETFs: Vanguard Total Stock Market Index Fund (50%), Vanguard Russell 2000 Index Fund (25%), and Vanguard Total International Stock Index Fund (25%). This allocation provides a broad exposure to both U.S. and international equities, covering a wide range of market capitalizations. Compared to typical benchmarks, this portfolio leans heavily on U.S. equities, which is common for investors seeking growth. To optimize performance, consider balancing the allocation more evenly between domestic and international markets to potentially reduce risk associated with regional economic downturns.

Growth Info

Historically, the portfolio has delivered a robust Compound Annual Growth Rate (CAGR) of 10.28%, indicating strong performance over time. However, it also experienced a maximum drawdown of -36.02%, reflecting vulnerability during market downturns. By comparing this to a benchmark index, the portfolio's growth aligns well with market trends, yet the drawdown suggests room for improvement in risk management. To mitigate potential losses, consider diversifying further or incorporating defensive assets that can help cushion against market volatility.

Projection Info

Using Monte Carlo simulations, which assess potential future outcomes based on historical data, the portfolio's projected annualized return is approximately 10.09%. While 931 out of 1,000 simulations show positive returns, the 5th percentile indicates a potential loss of -12.9%. This highlights the uncertainty inherent in projections, as past performance does not guarantee future results. To enhance predictability, regular portfolio reviews and adjustments based on changing market conditions can be beneficial, ensuring alignment with long-term goals.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is heavily weighted towards stocks, comprising 99% of the total allocation, with a minimal 1% in cash. This focus on equities is typical for a growth-oriented portfolio, aiming for higher returns. However, it also increases exposure to market volatility. Comparing this to a balanced portfolio, which might include bonds or other asset classes, the current allocation may lack stability during downturns. Introducing a small percentage of fixed-income securities could provide a buffer against equity market fluctuations and enhance overall risk management.

Sectors Info

  • Technology
    23%
  • Financials
    16%
  • Industrials
    12%
  • Health Care
    12%
  • Consumer Discretionary
    11%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Energy
    4%
  • Real Estate
    4%
  • Basic Materials
    4%
  • Utilities
    3%

Sector-wise, the portfolio is diverse, with significant allocations in technology (23%), financial services (16%), and industrials (12%). This mirrors common benchmarks but leans towards technology, which can lead to higher volatility, especially during interest rate changes. The broad sector distribution supports diversification, yet the concentration in tech suggests monitoring for potential risks. To manage sector-specific risks, consider periodically rebalancing to maintain a balanced sector exposure, aligning with evolving market conditions and personal risk tolerance.

Regions Info

  • North America
    77%
  • Europe Developed
    10%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is predominantly exposed to North America (77%), with limited exposure to Europe and Asia. This strong domestic focus aligns with many U.S.-based growth portfolios but may limit benefits from global diversification. Compared to global benchmarks, the portfolio's geographic allocation could be more balanced. Increasing exposure to emerging markets or other underrepresented regions could enhance diversification and potentially capture growth opportunities outside the U.S., mitigating risks associated with domestic economic fluctuations.

Market capitalization Info

  • Mega-cap
    31%
  • Large-cap
    23%
  • Small-cap
    17%
  • Mid-cap
    15%
  • Micro-cap
    12%

The portfolio's market capitalization distribution includes mega (31%), big (23%), small (17%), medium (15%), and micro (12%). This diverse spread across different company sizes provides a balance between stability and growth potential. Compared to a typical market-cap-weighted index, the inclusion of smaller companies suggests a tilt towards higher risk and return potential. To optimize diversification, consider maintaining this balance while being open to adjustments that reflect changes in market conditions, ensuring alignment with growth objectives.

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 can potentially be optimized using the Efficient Frontier, a concept that identifies the best possible risk-return ratio for a given set of assets. This optimization focuses on adjusting current allocations to achieve maximum returns for a given level of risk, without necessarily increasing diversification. For this portfolio, exploring different combinations of the current ETFs could enhance performance by finding the optimal balance between risk and return. Regularly revisiting the portfolio's position on the Efficient Frontier can help maintain alignment with changing market dynamics and investment goals.

Dividends Info

  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Vanguard Russell 2000 Index Fund ETF Shares 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 3.20%
  • Weighted yield (per year) 1.78%

The portfolio's total dividend yield stands at 1.78%, with the Vanguard Total International Stock Index Fund contributing a higher yield of 3.20%. Dividends provide a steady income stream, enhancing total returns, especially in volatile markets. For growth-oriented investors, dividends can be reinvested to compound returns over time. While the current yield is modest, focusing on dividend growth stocks or funds could increase income potential. Regularly reviewing dividend policies and yields can ensure they align with the portfolio's growth and income objectives.

Ongoing product costs Info

  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Russell 2000 Index Fund ETF Shares 0.10%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.06%

The portfolio's total expense ratio (TER) is impressively low at 0.06%, thanks to the efficient management of Vanguard ETFs. Low costs contribute to better long-term performance by minimizing expenses that erode returns. Compared to industry averages, this portfolio's costs are highly competitive, supporting its growth objectives. Maintaining low costs is crucial for maximizing returns, so consider staying with low-cost funds and monitoring expense ratios regularly to ensure they remain favorable as part of an ongoing cost management strategy.

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