A growth-oriented portfolio with a strategic blend of equities and Bitcoin exposure

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio suits an investor with a growth-oriented mindset who is comfortable with moderate to high risk. The balanced exposure to traditional equities and the speculative inclusion of Bitcoin indicate a preference for substantial long-term growth potential over immediate income or capital preservation. Such an investor likely has a longer investment horizon, allowing time to weather the volatility associated with high-growth assets. The diversification across sectors and geographies further suggests that this investor values a broad market approach to capturing growth while mitigating individual asset and sector risks.

Positions

  • Fidelity Wise Origin Bitcoin Trust
    FBTC - US3159481098
    25.00%
  • Invesco S&P 500® Momentum ETF
    SPMO - US46138E3392
    25.00%
  • Vanguard S&P 500 ETF
    VOO - US9229083632
    25.00%
  • Vanguard Total International Stock Index Fund ETF Shares
    VXUS - US9219097683
    25.00%

This portfolio exhibits a balanced structure with equal weightings across four distinct ETFs, blending traditional equity exposure with the innovative inclusion of Bitcoin through the Fidelity Wise Origin Bitcoin Trust. This unique mix not only diversifies across asset classes but also within the equity space, spanning the S&P 500, international stocks, and momentum strategies. The equal allocation demonstrates a commitment to both traditional market participation and speculative growth opportunities, reflecting a modern approach to asset allocation.

Warning Historical data is limited for this portfolio, which reduces the confidence in the calculated values.

Growth Info

Historically, the portfolio has shown impressive growth with a Compound Annual Growth Rate (CAGR) of 36.58%. This performance is particularly noteworthy when considering the significant drawdown of -19.66%, which underscores the volatility inherent in such a growth-focused strategy. The days contributing most to returns highlight the portfolio's sensitivity to market movements, a common characteristic of growth-oriented investments that include high-volatility assets like Bitcoin.

Warning Due to limited historical data, this may show extreme values that are not realistic.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of possible future outcomes, suggest a wide variance in potential portfolio values. With all simulations indicating positive returns and an annualized return projection of 44.16%, the forward-looking scenario is optimistic. However, it's crucial to remember that such simulations are based on past trends, and future market conditions can diverge significantly from historical patterns.

Asset classes Info

  • Stocks
    74%
  • Other
    25%
  • Cash
    1%
  • No data
    0%

The portfolio's asset class distribution, with 74% in stocks and 25% in 'Other', presumably Bitcoin, aligns with its growth profile. The inclusion of Bitcoin as a significant portion of the portfolio introduces a higher risk-reward dynamic, contrasting with the more stable equity components. This allocation supports the pursuit of aggressive growth while maintaining a foundation in traditional equities.

Sectors Info

  • Technology
    17%
  • Financials
    14%
  • Consumer Discretionary
    9%
  • Industrials
    8%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Health Care
    6%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation within the equity components is well-diversified, covering technology, financial services, consumer cyclicals, and more. This diversification helps mitigate sector-specific risks and capitalizes on growth across different areas of the economy. The technology sector's prominence is consistent with a growth-focused strategy, given its potential for innovation-driven returns.

Regions Info

  • North America
    52%
  • Europe Developed
    10%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Europe Emerging
    0%

Geographic exposure emphasizes North America but includes a meaningful allocation to developed and emerging markets worldwide. This global diversification enhances the portfolio's ability to capture growth across different economic cycles and regions, reducing the risk of over-reliance on any single market's performance.

Market capitalization Info

  • Mega-cap
    36%
  • Large-cap
    25%
  • Mid-cap
    12%
  • Small-cap
    1%
  • Micro-cap
    0%

The market capitalization breakdown, with a bias towards mega and big-cap stocks, suggests a preference for established, lower-volatility companies within the equity portion. However, the presence of medium, small, and micro-cap exposures ensures participation in the higher growth potential of smaller firms, balancing stability with growth.

Dividends Info

  • Invesco S&P 500® Momentum ETF 0.50%
  • Vanguard S&P 500 ETF 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.18%

The dividend yields across the portfolio contribute to its total return, with a combined yield of 1.18%. While not the primary focus of a growth-oriented strategy, these dividends offer a passive income stream and a cushion during market volatility, enhancing the portfolio's overall risk-return profile.

Ongoing product costs Info

  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.05%

The portfolio's costs are impressively low, with a Total Expense Ratio (TER) averaging 0.05%. This efficiency supports better long-term performance by minimizing the drag on returns due to fees. In a growth-focused portfolio, keeping costs low is crucial to maximizing the compounding effect of returns over time.

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.

The portfolio's current allocation suggests a well-considered balance between growth potential and risk management, as indicated by its risk score. However, optimizing for the Efficient Frontier could further refine this balance, potentially enhancing returns for a given level of risk. This process would involve adjusting the weights of the current assets to achieve the most efficient risk-return trade-off, based on historical performance and correlations.

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