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Growth-oriented portfolio with heavy reliance on industrials and a strong domestic focus

Report created on Sep 2, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio exhibits a significant concentration in Caterpillar Inc and CH Robinson Worldwide Inc, making up nearly half of its value, alongside a broad exposure to the stock market through various ETFs. The heavy weighting towards industrial stocks, at 54%, indicates a sector-specific risk that might not suit all investors. While the diversification across ETFs is commendable, the portfolio's overall balance is skewed by its large positions in individual stocks.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 20.56% and a maximum drawdown of -35.83%, the portfolio has demonstrated robust growth potential albeit with significant volatility. The days contributing to 90% of returns being so few suggests that the portfolio's performance is highly susceptible to market swings, emphasizing the importance of understanding volatility and its impact on long-term investment outcomes.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median scenario suggesting substantial growth. However, it's crucial to remember that these simulations are based on historical data and cannot predict future market conditions with certainty. The wide spread between the 5th and 67th percentiles highlights the portfolio's risk profile, suggesting that while high returns are possible, so are significant losses.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily weighted towards stocks (99%), with a minimal cash reserve. This allocation supports the portfolio's growth objectives but also increases its susceptibility to market downturns. Diversifying across more asset classes could help mitigate some of this risk, providing a smoother investment journey.

Sectors Info

  • Industrials
    54%
  • Technology
    14%
  • Financials
    9%
  • Consumer Discretionary
    7%
  • Telecommunications
    4%
  • Health Care
    4%
  • Energy
    3%
  • Consumer Staples
    3%
  • Basic Materials
    2%
  • Real Estate
    1%
  • Utilities
    1%

Sector allocation leans heavily towards Industrials, with notable allocations in Technology and Financial Services. This concentration can offer specialized growth opportunities but also exposes the portfolio to sector-specific downturns. Broadening the sectoral spread could reduce volatility and improve resilience against market shifts.

Regions Info

  • North America
    85%
  • Europe Developed
    6%
  • Asia Emerging
    3%
  • Japan
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is predominantly invested in North America (85%), with minimal exposure to other regions. This concentration in developed markets, while stable, limits potential gains from emerging markets, which may offer higher growth rates. Increasing international diversification could enhance returns and reduce geographical risks.

Market capitalization Info

  • Large-cap
    60%
  • Mega-cap
    21%
  • Mid-cap
    7%
  • Small-cap
    6%
  • Micro-cap
    5%

The portfolio favors Big and Mega-cap stocks, which tend to be more stable and less volatile than smaller companies. However, this focus may limit potential high-growth opportunities available in the Medium, Small, and Micro-cap sectors. Incorporating a broader market cap range could enhance growth prospects and diversification.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Vanguard Growth Index Fund ETF Shares
    High correlation

The high correlation between certain ETF holdings suggests redundancy, diminishing the portfolio's diversification benefits. Reducing overlap by reallocating investments from highly correlated assets to less correlated ones can improve the portfolio's overall risk-return profile.

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 concentration in specific stocks and sectors, as well as the overlap among ETFs. Balancing the portfolio to reduce these concentrations and overlaps can enhance diversification and potentially improve the risk-return ratio, moving the portfolio closer to the Efficient Frontier.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Caterpillar Inc 1.40%
  • CH Robinson Worldwide Inc 1.90%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.51%

With a total dividend yield of 1.51%, the portfolio provides a modest income stream in addition to potential capital gains. Given the growth-oriented nature of the portfolio, this yield is reasonable, though investors seeking higher income might consider reallocating towards assets with higher dividend yields.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

The portfolio benefits from low overall costs (TotalTER 0.04%), which is favorable for long-term growth. Keeping investment costs low is crucial for maximizing returns, and this portfolio aligns well with that principle. The emphasis on low-cost ETFs is a sound strategy for efficient growth.

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