A growth-focused portfolio with a strong tilt towards technology and global diversification

Report created on Aug 2, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards technology, with 35% in a dedicated tech ETF, and has a significant allocation in the total stock market, developed markets, and emerging markets ETFs. This structure indicates a growth-oriented strategy with a broad diversification across geographies but a notable concentration in the technology sector. The balance between developed and emerging markets enhances global exposure, potentially mitigating region-specific risks and capturing growth opportunities worldwide.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 14.99%, which is impressive. The maximum drawdown of -32.92% indicates that while the portfolio has the potential for high returns, it also comes with significant risk, especially in volatile market conditions. The days contributing to 90% of returns being relatively few suggest that timing the market could be challenging, emphasizing the importance of a long-term investment horizon.

Projection Info

Monte Carlo simulations, which use historical data to project a range of possible future outcomes, show a wide variance in potential portfolio values. With the majority of simulations indicating positive returns and an annualized return of 13.94%, the forward projection remains optimistic. However, it's crucial to remember that these projections are speculative and depend on past market behavior, which is not always indicative of future performance.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset class distribution is almost entirely in stocks (99%), with a minimal cash holding. This allocation supports the portfolio's growth-focused objective but also increases its volatility and risk, especially in market downturns. Diversification across different asset classes, such as bonds or real estate, could provide a buffer against stock market volatility.

Sectors Info

  • Technology
    50%
  • Financials
    12%
  • Industrials
    7%
  • Consumer Discretionary
    7%
  • Health Care
    6%
  • Telecommunications
    5%
  • Consumer Staples
    4%
  • Basic Materials
    3%
  • Energy
    2%
  • Real Estate
    2%
  • Utilities
    2%

With half of the portfolio allocated to technology, the sector composition leans heavily towards high-growth potential but also high volatility. Financial services, industrials, and consumer cyclicals follow, providing some sectoral balance. However, the heavy tech weighting could expose the portfolio to sector-specific downturns, such as those driven by regulatory changes or shifts in consumer behavior.

Regions Info

  • North America
    71%
  • Asia Emerging
    9%
  • Europe Developed
    8%
  • Asia Developed
    4%
  • Japan
    3%
  • Africa/Middle East
    2%
  • Latin America
    1%
  • Australasia
    1%

The portfolio's geographic allocation is predominantly in North America (71%), with meaningful exposure to emerging and developed markets outside the U.S. This global diversification helps mitigate the risk of regional economic downturns and capitalizes on growth opportunities in various parts of the world. However, the heavy North American focus might limit exposure to potential high-growth markets abroad.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    29%
  • Mid-cap
    16%
  • Small-cap
    6%
  • Micro-cap
    2%

The market capitalization breakdown shows a preference for larger companies (mega and big caps), which are typically more stable but might offer lower growth potential compared to smaller companies. Medium, small, and micro-cap stocks, while riskier, could provide higher growth opportunities and further diversification benefits.

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 this portfolio using the Efficient Frontier could potentially enhance its risk-return profile. The current heavy allocation to technology and large-cap stocks suggests room for improved diversification. Adjusting the asset allocation to include a wider range of asset classes and sectors could achieve a more efficient balance between risk and return, without necessarily sacrificing growth potential.

Dividends Info

  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.70%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.42%

The portfolio's overall dividend yield of 1.42% contributes to its total return, with emerging markets and developed markets ETFs offering higher yields. While dividends are not the primary focus of this growth-oriented portfolio, they provide a source of passive income and can offer some cushion during market dips.

Ongoing product costs Info

  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.06%

The portfolio's total expense ratio (TER) of 0.06% is impressively low, which is beneficial for long-term growth as costs can significantly erode returns over time. Keeping costs low is a key component of successful investing, particularly in a low-yield environment.

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