Growth-focused portfolio with high exposure to large-cap US stocks and minimal small-cap diversification

Report created on Jul 11, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily weighted towards the Vanguard S&P 500 ETF, comprising 90% of the allocation, with the remaining 10% in the Avantis® U.S. Small Cap Value ETF. This composition indicates a strong preference for large-cap U.S. equities, with a minor allocation towards small-cap value stocks. The diversification is low, focusing almost entirely on the stock asset class within the U.S. market. This approach aligns with a growth-oriented strategy but carries a concentration risk due to the limited exposure to different asset classes and market capitalizations.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 16.78%, with a maximum drawdown of -35.19%. These figures suggest robust growth potential, albeit with significant volatility. The days contributing to 90% of returns being limited to 17.0 indicates that the portfolio's performance is highly reliant on specific, short-term market movements. This pattern underscores the importance of timing in investments but also highlights the risks associated with market volatility.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential portfolio values. With key percentiles indicating a 5th percentile outcome of 54.4% growth and a 50th percentile at 605.3%, the projections underscore the portfolio's high growth potential. However, the significant spread between these percentiles also reflects considerable uncertainty, emphasizing the risk involved.

Asset classes Info

  • Stocks
    100%

The portfolio's asset allocation is entirely in stocks, with no exposure to other asset classes such as bonds, real estate, or commodities. This lack of diversification can amplify volatility and risk, particularly in market downturns. While stocks generally offer higher returns over the long term, incorporating a mix of asset classes can help smooth out returns and reduce risk.

Sectors Info

  • Technology
    30%
  • Financials
    15%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    9%
  • Industrials
    9%
  • Consumer Staples
    6%
  • Energy
    4%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

Sector allocation within the portfolio is heavily skewed towards technology, financial services, and consumer cyclicals, which are sectors known for their growth potential. However, these sectors can also be more volatile and sensitive to economic cycles. The underrepresentation of more defensive sectors, such as utilities and consumer staples, may increase the portfolio's susceptibility to market swings.

Regions Info

  • North America
    99%

The geographic allocation is almost exclusively focused on North America, with negligible exposure to international markets. This concentration in a single region can limit opportunities for global diversification and increase vulnerability to U.S.-specific economic and political events. Expanding geographic exposure could potentially reduce risk and tap into growth opportunities in other regions.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    31%
  • Mid-cap
    16%
  • Small-cap
    5%
  • Micro-cap
    5%

The portfolio's market capitalization exposure is predominantly in mega and big-cap stocks, which typically offer stability and steady growth. However, the minimal allocation to small and micro-cap stocks limits potential for higher returns that these riskier, smaller companies can offer. Diversifying across different market caps can enhance growth potential while managing risk.

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 current composition and risk profile, there's room for optimization towards the Efficient Frontier, where the risk-return ratio is maximized. This could involve diversifying across more asset classes, sectors, and geographies, as well as adjusting the balance between large-cap and small-cap exposures. Such adjustments aim to achieve a more efficient allocation without necessarily sacrificing growth potential.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.25%

The portfolio's dividend yield sits at 1.25%, driven by the holdings in both ETFs. While not the primary focus of a growth-oriented portfolio, dividends can provide a steady income stream and contribute to total returns, especially in volatile or down markets. The current yield reflects a balance between growth potential and income generation.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.05%

With a total expense ratio (TER) of 0.05%, the portfolio benefits from low costs, which is crucial for long-term growth. Lower costs mean more of the portfolio's returns are kept by the investor, rather than being eroded by fees. This efficiency is a positive aspect, particularly in growth-focused strategies where every percentage point of return matters.

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