A growth-oriented portfolio with a strong focus on US stocks and low costs
Report created on Jul 21, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 85.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 15.00%
The portfolio is heavily weighted towards the Vanguard Total Stock Market Index Fund ETF Shares, comprising 85% of the allocation, with the remaining 15% in the Vanguard Total International Stock Index Fund ETF Shares. This structure emphasizes a growth profile, leveraging the broad diversification across the US market and a smaller but significant exposure to international markets. The singular focus on ETFs simplifies the portfolio, potentially making it easier to manage while still tapping into a wide array of sectors and geographies.
Growth
With a Compound Annual Growth Rate (CAGR) of 13.01%, the portfolio has shown robust growth. The maximum drawdown of -34.80% indicates a relatively high risk, consistent with the portfolio's growth orientation. The fact that 90% of returns came from 28 days highlights the market's volatility and the importance of staying invested through market swings. Comparing this performance to benchmarks would provide further context, but these figures suggest a strong historical performance, especially for growth-focused investors.
Projection
Using Monte Carlo simulations, the forward projection offers a wide range of outcomes, with a median increase of 277.2% and a 5th percentile at a modest 21.4% gain. This analysis, based on historical data, underscores the inherent uncertainty in investing, demonstrating both the potential for significant growth and the risk of lower returns. It's important to remember that these projections are hypothetical and actual future performance may vary.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's allocation is nearly all in stocks (99%), with a minimal cash holding (1%). This high equity exposure is typical for growth-oriented portfolios but comes with increased volatility and risk. Diversifying across asset classes could potentially reduce volatility without significantly compromising long-term growth prospects.
Sectors
- Technology 28%
- Financials 15%
- Consumer Discretionary 11%
- Industrials 10%
- Health Care 10%
- Telecommunications 9%
- Consumer Staples 6%
- Energy 3%
- Real Estate 3%
- Basic Materials 3%
- Utilities 3%
Sector allocation is concentrated in technology (28%), financial services (15%), and consumer cyclicals (11%), reflecting a growth-focused strategy. This concentration, especially in technology, may lead to higher volatility but also offers the potential for substantial gains. Balancing this with sectors that have different economic sensitivities could enhance risk-adjusted returns.
Regions
- North America 86%
- Europe Developed 6%
- Asia Emerging 2%
- Japan 2%
- Asia Developed 2%
- Australasia 1%
- Africa/Middle East 1%
Geographically, the portfolio is heavily weighted towards North America (86%), with modest exposure to developed Europe (6%) and emerging markets in Asia (2%). This concentration in the US market aligns with its growth strategy but may limit global diversification benefits. Increasing exposure to international markets could offer additional growth opportunities and risk mitigation.
Market capitalization
- Mega-cap 41%
- Large-cap 31%
- Mid-cap 19%
- Small-cap 6%
- Micro-cap 2%
The exposure by market capitalization shows a preference for larger companies (Mega 41%, Big 31%), which is typical for index-based ETFs. While large-cap stocks tend to be more stable, incorporating a broader range of market caps could enhance diversification and potentially tap into the higher growth rates sometimes found in smaller companies.
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.
Considering the portfolio's risk and return characteristics, there may be opportunities for optimization towards the Efficient Frontier, where the portfolio could achieve the highest expected return for a given level of risk. This might involve adjusting the asset allocation or diversifying further across sectors and geographies. However, the current focus on growth and low costs is well-aligned with the goals of many investors.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.44%
The dividend yields of 1.20% for the Total Stock Market ETF and 2.80% for the International Stock ETF average to a total yield of 1.44%. While not the primary focus of a growth-oriented portfolio, these dividends can provide a steady income stream and contribute to total returns, especially in volatile or down markets.
Ongoing product costs
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.03%
The portfolio benefits from exceptionally low costs, with a Total Expense Ratio (TER) of 0.03%. Low costs are crucial for long-term investment success as they directly enhance net returns. This competitive cost structure is a significant strength of the portfolio, ensuring more of the investment's growth is retained by the investor.
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