Growth-focused ETF portfolio with high US exposure and a tilt towards technology

Report created on Jul 9, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio predominantly consists of ETFs with a strong emphasis on the US market, comprising 80% of its allocation, and a notable tilt towards technology and large-cap stocks. The inclusion of a single international ETF provides some global exposure, albeit limited. The asset allocation is heavily skewed towards stocks, making it suitable for growth-oriented investors but potentially increasing volatility.

Growth Info

With a historical Compound Annual Growth Rate (CAGR) of 17.20% and a maximum drawdown of -34.77%, the portfolio has demonstrated strong growth with significant volatility. The days contributing to 90% of returns highlight the portfolio's susceptibility to short-term market movements. This performance, while impressive, underscores the importance of understanding the inherent risks associated with high-growth strategies.

Projection Info

The Monte Carlo simulation, using 1,000 scenarios, predicts a wide range of potential outcomes, from a low 5th percentile to a high 67th percentile performance. This underscores the uncertainty and risk involved in investing, highlighting the importance of being prepared for various market conditions. The high percentage of simulations with positive returns suggests optimism but should be tempered with caution.

Asset classes Info

  • Stocks
    100%
  • Cash
    1%

The portfolio's allocation is heavily weighted towards stocks, with a minor cash holding. This singular focus on equities enhances growth potential but also increases risk, especially during market downturns. Diversifying across more asset classes could provide a buffer against volatility while still allowing for significant growth.

Sectors Info

  • Technology
    33%
  • Financials
    13%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Industrials
    9%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Utilities
    2%

The technology sector's dominance in this portfolio, along with significant allocations to financial services and consumer cyclicals, positions it well for growth in innovative and consumer-driven markets. However, this concentration also exposes the portfolio to sector-specific downturns. Broadening the sectoral spread could mitigate some of this risk.

Regions Info

  • North America
    88%
  • Europe Developed
    5%
  • Asia Developed
    2%
  • Asia Emerging
    2%
  • Japan
    2%

The geographic allocation heavily favors North America, with minimal exposure to international markets. While this has likely benefited the portfolio given the strong performance of US markets, it also limits potential gains from global diversification. Increasing exposure to developed and emerging markets outside the US could enhance returns and reduce geographic concentration risk.

Market capitalization Info

  • Mega-cap
    36%
  • Large-cap
    27%
  • Mid-cap
    19%
  • Small-cap
    14%
  • Micro-cap
    4%

The portfolio's market capitalization allocation shows a preference for mega and large-cap stocks, which tend to be more stable and less volatile than smaller companies. However, the presence of medium, small, and micro-cap stocks introduces growth potential at the cost of higher volatility. A more balanced approach to market capitalization could provide a smoother investment experience.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    SPDR® Portfolio S&P 500 ETF
    High correlation

The high correlation between certain ETFs, particularly those tracking the S&P 500 and large-cap growth stocks, indicates redundancy that does not contribute to diversification. Reducing overlap by reallocating investments from highly correlated assets to those with lower correlations could enhance portfolio efficiency without significantly impacting the growth trajectory.

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 for the Efficient Frontier suggests a need to address the portfolio's asset correlation. By reducing overlap among highly correlated ETFs, the portfolio could achieve a more efficient risk-return profile. This adjustment would not necessarily compromise growth potential but could enhance overall portfolio resilience.

Dividends Info

  • Fidelity Small-Mid Factor 1.30%
  • Invesco S&P 500 Revenue ETF 1.40%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • VanEck Semiconductor ETF 0.40%
  • SPDR® Portfolio S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.18%

The portfolio's overall dividend yield of 1.18% contributes to its total returns, albeit modestly. Given the growth focus, the lower dividend yield is understandable, but investors seeking income might consider reallocating towards assets with higher yield potential, balanced against growth objectives.

Ongoing product costs Info

  • Fidelity Small-Mid Factor 0.15%
  • Invesco S&P 500 Revenue ETF 0.39%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • VanEck Semiconductor ETF 0.35%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.16%

The total expense ratio (TER) of 0.16% is impressively low, enhancing long-term compounding potential by minimizing costs. This cost efficiency is a strong aspect of the portfolio, allowing more of the investment returns to be retained by the investor.

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