A growth-focused portfolio with a strong emphasis on US equities and a strategic tilt towards Asian technology

Report created on Jun 25, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards US equities, with significant positions in the Schwab S&P 500 Index Fund, Schwab U.S. Broad Market ETF, and Vanguard S&P 500 ETF, together comprising over 86% of the portfolio. This concentration suggests a strong belief in the continued growth of the US market. The inclusion of KraneShares Hang Seng TECH Index ETF and KraneShares MSCI China Clean Technology ETF introduces a targeted exposure to Asian technology and clean technology sectors, respectively. The portfolio's structure reflects a growth-oriented strategy with a moderate level of diversification across sectors but limited geographic diversity.

Growth Info

The portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 10.09%, which is a robust performance metric, especially when considering the significant drawdown of -26.53%. This drawdown indicates the portfolio's vulnerability to market volatility, a common characteristic of growth-oriented investments. The days contributing to 90% of returns being so few highlights the portfolio's reliance on short-term gains, which could be a concern for investors seeking more stable, long-term growth.

Projection Info

Monte Carlo simulations, which use historical data to project future portfolio performance, suggest a wide range of outcomes, from a 5th percentile scenario of -79.8% to a 67th percentile scenario of 103.9%. This wide range underscores the inherent uncertainties in predicting market movements. While the median outcome of a 25.3% return appears favorable, the significant portion of simulations resulting in negative returns (429 out of 1,000) highlights the portfolio's risk level.

Asset classes Info

  • Stocks
    100%

With 100% of the portfolio allocated to stocks, there's a clear focus on capital growth over income or preservation of capital. This asset class allocation aligns with the portfolio's growth profile but comes with higher volatility and risk, especially in market downturns. The absence of diversification into other asset classes like bonds or real estate may limit the portfolio's ability to mitigate losses during stock market corrections.

Sectors Info

  • Technology
    30%
  • Financials
    12%
  • Consumer Discretionary
    11%
  • Telecommunications
    11%
  • Health Care
    9%
  • Industrials
    8%
  • Consumer Staples
    5%
  • Consumer Discretionary
    4%
  • Utilities
    3%
  • Energy
    3%
  • Real Estate
    2%
  • Basic Materials
    2%

The sectoral allocation demonstrates a heavy emphasis on technology, followed by financial services, consumer cyclicals, and communication services. This concentration in sectors known for high growth potential supports the portfolio's growth objectives but also increases susceptibility to sector-specific risks. The underrepresentation of traditionally defensive sectors like utilities and consumer defensive could exacerbate volatility during market downturns.

Regions Info

  • North America
    86%
  • Asia Emerging
    13%

The portfolio's geographic allocation is heavily skewed towards North America, with a notable but smaller allocation to Asia Emerging markets. This concentration in developed markets, particularly the US, may offer stability and access to mature companies with growth potential. However, the lack of exposure to other regions, including Europe Developed and Latin America, limits global diversification and the potential for capturing growth in emerging markets.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    32%
  • Mid-cap
    16%
  • Small-cap
    2%
  • Micro-cap
    1%

The breakdown by market capitalization shows a preference for mega and large-cap stocks, which typically offer more stability and less volatility than smaller companies. However, this focus may limit the portfolio's exposure to high-growth opportunities in the mid to small-cap space. The minimal allocation to small and micro-caps suggests a cautious approach to risk but may also cap potential high-growth returns.

Redundant positions Info

  • Schwab S&P 500 Index Fund
    Schwab U.S. Broad Market ETF
    Vanguard S&P 500 ETF
    High correlation

The high correlation among the three major US equity positions indicates a redundancy that may not be contributing to portfolio diversification. Since these assets move in tandem, the portfolio's risk is not significantly reduced. Diversifying into assets with lower correlations could help mitigate risk while potentially enhancing returns, especially during periods when US equities underperform.

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 current portfolio's risk-return profile could be improved by addressing the high correlation among its largest holdings. By reallocating assets to reduce overlap and introduce non-correlated assets, the portfolio could achieve a more efficient risk-return balance. The optimal portfolio projection suggests that with the same level of risk, a more diversified approach could potentially increase the expected return to 12.18%, underscoring the value of diversification.

Dividends Info

  • KraneShares MSCI China Clean Technology ETF 1.30%
  • KraneShares Hang Seng TECH Index ETF 0.20%
  • Schwab U.S. Broad Market ETF 1.20%
  • Schwab S&P 500 Index Fund 1.20%
  • Vanguard S&P 500 ETF 1.30%
  • Weighted yield (per year) 1.13%

The portfolio's dividend yield, averaging around 1.13%, contributes to its total return but is not the primary focus. Given the growth orientation, this yield level is reasonable, as the investments primarily aim for capital appreciation rather than income generation. Investors seeking higher income might consider diversifying into assets with higher dividend yields.

Ongoing product costs Info

  • KraneShares MSCI China Clean Technology ETF 0.79%
  • KraneShares Hang Seng TECH Index ETF 0.69%
  • Schwab U.S. Broad Market ETF 0.03%
  • Schwab S&P 500 Index Fund 0.02%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.12%

The portfolio benefits from relatively low costs, with Total Expense Ratios (TER) ranging from 0.02% to 0.79%. The low costs associated with the majority of the portfolio's holdings support better net returns over the long term. However, the higher costs of the KraneShares ETFs, while still under 1%, could be justified by their specialized exposure to Chinese technology and clean technology sectors.

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