A growth-focused portfolio with high tech exposure and a strong emphasis on global stocks
Report created on Aug 7, 2025Risk profile
5/7
Diversification profile
5/5
Positions
-
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 80.00% -
VG Vanguard Information Technology Index Fund ETF Shares
VGT - US92204A7028 15.00% -
BN Vanguard Total World Bond ETF
BNDW - US92206C5655 5.00%
The portfolio is heavily weighted towards global equities, with 80% in the Vanguard Total World Stock Index Fund ETF Shares and 15% in the Vanguard Information Technology Index Fund ETF Shares, highlighting a significant emphasis on technology. The remaining 5% is allocated to the Vanguard Total World Bond ETF, providing minimal fixed income exposure. This composition suggests a growth-oriented strategy with a considerable tilt towards tech, underpinned by a broad global diversification across both developed and emerging markets.
Growth
Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.16%, with a maximum drawdown of -32.24%. This performance indicates a strong growth trajectory, albeit with significant volatility, as evidenced by the substantial drawdown. The days contributing to 90% of returns being concentrated in just 18 days further underscores the portfolio's susceptibility to short-term fluctuations, highlighting the importance of a long-term investment horizon to mitigate the impact of volatility.
Projection
Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of potential outcomes. The median projection suggests a 331% increase, with a 67th percentile outcome at a 514.1% increase. However, it's crucial to remember that these projections are hypothetical and do not guarantee future results. They serve to illustrate potential volatility and the range of outcomes, emphasizing the need for a risk-tolerant investment approach.
Asset classes
- Stocks 94%
- Bonds 5%
- Cash 1%
The asset allocation is heavily skewed towards stocks (94%), with a minor allocation to bonds (5%) and a negligible cash position (1%). This distribution aligns with the portfolio's growth profile but limits the cushion against market downturns typically provided by higher bond allocations. Investors should consider whether this high equity exposure aligns with their risk tolerance and investment horizon.
Sectors
- Technology 34%
- Financials 14%
- Industrials 9%
- Consumer Discretionary 9%
- Health Care 7%
- Telecommunications 6%
- Consumer Staples 5%
- Basic Materials 3%
- Energy 3%
- Real Estate 2%
- Utilities 2%
The sector allocation is notably tech-heavy (34%), reflecting a strong conviction in the technology sector's growth potential. While this has historically contributed to higher returns, it also increases the portfolio's sensitivity to tech sector volatility. Diversifying across other sectors or reducing tech exposure could mitigate sector-specific risks without significantly compromising growth potential.
Regions
- North America 67%
- Europe Developed 12%
- Asia Emerging 5%
- Japan 5%
- Asia Developed 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
The geographic allocation is predominantly in North America (67%), with diversified exposure across other regions, including developed Europe (12%) and emerging Asian markets (5%). This global distribution enhances diversification, reducing the impact of region-specific economic downturns. However, the heavy North American concentration may expose the portfolio to regional market risks, suggesting a potential review of geographic allocations to ensure alignment with diversification goals.
Market capitalization
- Mega-cap 42%
- Large-cap 29%
- Mid-cap 17%
- Small-cap 5%
- Micro-cap 1%
The market capitalization breakdown shows a preference for large-cap stocks (Mega 42%, Big 29%), which tend to be more stable and less volatile than smaller companies. However, the inclusion of medium (17%), small (5%), and micro (1%) caps introduces growth potential at the cost of increased volatility. This balance supports the portfolio's growth objectives while maintaining a degree of stability.
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 asset allocation appears well-suited to achieving a high growth potential, given the portfolio's risk profile. However, optimizing for the Efficient Frontier could further enhance the risk-return balance. This might involve adjusting the asset allocation to achieve the most efficient combination of assets, maximizing returns for the given level of risk. It's important to note that such optimization must be regularly revisited to adapt to changing market conditions.
Dividends
- Vanguard Total World Bond ETF 4.00%
- Vanguard Information Technology Index Fund ETF Shares 0.50%
- Vanguard Total World Stock Index Fund ETF Shares 1.70%
- Weighted yield (per year) 1.64%
The dividend yield of the portfolio stands at 1.64%, with the bond component contributing a 4.00% yield, offering a modest income stream. While the focus on growth over income is clear, investors relying on their portfolio for regular income might consider increasing their allocation to higher-yielding assets.
Ongoing product costs
- Vanguard Total World Bond ETF 0.05%
- Vanguard Information Technology Index Fund ETF Shares 0.10%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.07%
The overall portfolio costs are impressively low, with a total expense ratio (TER) of 0.07%. This efficiency supports better long-term performance by minimizing the drag on returns caused by fees. Investors should continue to prioritize low-cost investments to maximize their return potential over time.
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