A growth tilted portfolio with strong large cap exposure and heavy home bias toward North America
Report created on Nov 22, 2024Risk profile
4/7
Diversification profile
1/5
Positions
-
VF Vanguard S&P 500 Index ETF
VFV - CA92205Y1051 73.76% -
VD Vanguard FTSE Canadian High Dividend Yield
VDY - CA92203Q1046 10.12% -
CC Cameco Corp
CCO - CA13321L1085 5.51% -
BN Brookfield Corporation
BN - CA11271J1075 5.35% -
BI Bitfarms Ltd
BITF 2.81% -
BT Purpose Bitcoin ETF Currency Hedged Units
BTCC - CA74642C1023 2.45%
The portfolio is heavily tilted toward a single broad index position, with the S&P 500 ETF making up almost three quarters of the total. The rest is split among a Canadian dividend ETF, two individual Canadian stocks, and a small slice of Bitcoin exposure through both a stock and an ETF. This creates a core‑satellite structure: one big diversified core holding plus a handful of side bets. That core is well aligned with common benchmarks and supports long‑term growth. The side positions add risk and concentration, so it can help to decide clearly what role each smaller holding plays and set rough maximum size ranges for them.
Growth
Historically, this mix has done extremely well, with an 18.71% compound annual growth rate (CAGR). CAGR is like your average speed on a road trip, smoothing out slow and fast stretches into one clean yearly number. A hypothetical 10,000 investment growing at that rate for 10 years would end up many times larger than the starting amount. At the same time, the portfolio has seen a maximum drawdown of about 21%, meaning at one point it was roughly one fifth below a previous peak. Past performance beats typical balanced benchmarks here, but it is not a promise; markets can behave very differently in future cycles.
Projection
The Monte Carlo simulation runs 1,000 alternate futures based on historical patterns, then shows a range of possible outcomes. It suggests a wide spread: in the 5th percentile, wealth shrinks heavily, while in the median and higher percentiles, the portfolio grows many times over. Monte Carlo is like rolling dice many times using past volatility and returns to guess what could happen, not what will happen. The overall average annualized return across simulations is very high, but that number is especially sensitive to a few extreme paths. Treat these projections as a rough weather forecast rather than a precise roadmap, and plan around the wide downside band.
Asset classes
- US Equity 72%
- Stocks 14%
- Stocks 10%
- Other 2%
Most of the portfolio sits in listed equities, with US equity dominating and some Canadian stocks and a small “other” slice tied to Bitcoin. This equity‑heavy profile is what drives strong growth and also explains the higher volatility compared with a classic balanced mix that includes more bonds or cash. The allocation is well aligned with a growth‑oriented benchmark, but the diversification score shows that it’s still somewhat single‑focused because there’s little exposure to stabilizing assets. Someone wanting a smoother ride could look at adding income‑oriented or defensive asset types over time, while someone comfortable with equity swings may simply monitor that the overall stock share stays in line with their comfort level.
Sectors
- Technology 27%
- Financials 24%
- Energy 10%
- Consumer Discretionary 8%
- Telecommunications 8%
- Health Care 6%
- Industrials 5%
- Consumer Staples 4%
- Utilities 2%
- Basic Materials 2%
- Real Estate 1%
Sector exposure is broad on paper, with notable weights in technology, financials, energy, consumer areas, communications, healthcare, and industrials. This is largely the result of owning major index ETFs, which is positive because it keeps the portfolio generally aligned with modern benchmark sector mixes. The tech and growth tilt means returns can be very strong when growth stocks are in favour, but drops can be sharper when interest rates rise or when investors rotate toward more defensive areas. The small direct positions in individual companies also add idiosyncratic sector and company risk. One useful habit is to set soft limits for any single theme and periodically check that no sector has quietly become uncomfortably dominant.
Regions
- North America 97%
Geographically, the portfolio is almost entirely concentrated in North America, with about 97% in that region. This heavy home‑region and US tilt has helped in the last decade because North American markets, especially the US, have outperformed many others. That alignment with recent winners has boosted returns and simplified currency exposure for a Canadian‑based investor. The flip side is that it leaves very little diversification benefit from other parts of the world. If North American markets face a long weak period while other regions do better, this portfolio would feel the drag. A modest allocation to broader global exposure can help spread political, regulatory, and economic risks beyond one region.
Market capitalization
- Large-cap 39%
- Mega-cap 39%
- Mid-cap 17%
- Small-cap 1%
The holdings lean strongly toward mega and large capitalization companies, with a smaller slice in mid caps and barely any small caps. Large and mega cap stocks tend to be more stable and widely researched, which reduces single‑company blow‑up risk and usually leads to lower day‑to‑day volatility than a small‑cap‑heavy portfolio. This is nicely aligned with standard index benchmarks and supports more predictable behaviour. However, small and mid caps sometimes lead in certain economic phases and can add diversification. The small allocations to more speculative names and Bitcoin already bring some higher‑risk flavour, so any further move into smaller caps should be weighed against overall risk comfort and the desire for smoother returns.
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.
On a risk‑return chart called the Efficient Frontier, each mix of your existing holdings would plot as a point, from lower‑risk to higher‑risk versions of the same ingredients. Efficiency here means getting the best possible expected return for a chosen level of volatility, using only current assets but in different proportions. This portfolio already sits on the growthier side for a “balanced” label because of its equity and Bitcoin tilt. Small shifts among the core index ETF, dividend ETF, individual stocks, and Bitcoin sleeve could potentially move it closer to an efficient mix. Any such changes should reflect personal comfort with drawdowns, not just chasing the highest projected return.
Dividends
- Brookfield Corporation 0.50%
- Cameco Corp 0.10%
- Vanguard FTSE Canadian High Dividend Yield 1.90%
- Vanguard S&P 500 Index ETF 0.50%
- Weighted yield (per year) 0.59%
The overall dividend yield for this portfolio is modest, at around 0.59% annually, even though one ETF focuses on higher dividends. This reflects the growth tilt toward big US companies and some lower‑yield Canadian names. Dividends are cash payments from companies, and they can provide a smoother income stream and a cushion in weak markets, but they are only one part of total return. Here, most of the return has come from price growth rather than income. For someone in an accumulation phase reinvesting gains, this is not a problem and can actually be efficient. For someone wanting more regular cash flow, increasing the share of income‑generating holdings could be worth considering, while watching overall risk.
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