A growth-focused portfolio with high diversification and a tilt towards technology and North America

Report created on Aug 24, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio exhibits a robust composition, heavily weighted towards stocks (95%), with a minor allocation in bonds (3%) and cash (1%). This asset distribution underscores a growth-oriented strategy, leaning significantly on equities to drive performance. The notable absence of alternative assets suggests a traditional approach to growth, relying on stock and bond markets. However, this concentration in equities, especially within certain sectors and geographies, may expose the portfolio to higher volatility and sector-specific risks, which should be considered in light of the investor's risk tolerance and investment horizon.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 15.87%, with a maximum drawdown of -34.68%. This performance indicates a strong growth trajectory, albeit with significant volatility, as evidenced by the steep drawdown. The days contributing to 90% of returns being concentrated in just 20 days further highlights the portfolio's susceptibility to short-term volatility. While past performance is impressive, it's crucial to remember that it doesn't guarantee future results, especially in a market environment that may differ significantly from the past.

Projection Info

Monte Carlo simulations, which run thousands of hypothetical scenarios to predict future performance, show a wide range of outcomes for this portfolio. With the 50th percentile projection at a 466.8% increase, it suggests optimism for future growth. However, the broad spread between the 5th and 67th percentiles (35.0% to 714.8%) underscores the inherent uncertainty and risk. While these projections are useful for planning, investors should approach them with caution, as they are based on historical data and assumptions that may not hold in the future.

Asset classes Info

  • Stocks
    95%
  • Bonds
    3%
  • Cash
    1%

The portfolio's heavy allocation to stocks aligns with its growth profile, but the minimal bond presence and lack of alternative investments like real estate or commodities limit its diversification. Diversifying across different asset classes can help mitigate risk, as they often react differently to the same economic events. Considering adding alternative assets or increasing the bond allocation could provide a buffer against stock market volatility, potentially smoothing out returns over time.

Sectors Info

  • Technology
    35%
  • Financials
    13%
  • Industrials
    11%
  • Health Care
    9%
  • Consumer Discretionary
    9%
  • Telecommunications
    8%
  • Consumer Discretionary
    4%
  • Energy
    4%
  • Consumer Staples
    4%
  • Basic Materials
    2%
  • Real Estate
    1%
  • Utilities
    1%

With a strong emphasis on technology (35%) and significant investments in financial services and industrials, the portfolio is positioned to benefit from growth in these sectors. However, this concentration also introduces sector-specific risks, as these areas can be highly sensitive to economic cycles and interest rate changes. Diversifying more evenly across sectors could reduce volatility and protect against downturns in any single sector.

Regions Info

  • North America
    70%
  • Europe Developed
    12%
  • Asia Developed
    6%
  • Asia Emerging
    4%
  • Japan
    3%
  • Latin America
    2%
  • Africa/Middle East
    2%
  • Australasia
    1%

The portfolio's geographic allocation is heavily skewed towards North America (70%), with modest exposure to developed Europe and Asia, and minimal allocations to emerging markets and other regions. This concentration enhances exposure to the stability and growth potential of developed markets but may limit opportunities in faster-growing emerging markets. Increasing exposure to underrepresented regions could offer additional growth avenues and diversification benefits.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    27%
  • Mid-cap
    17%
  • Small-cap
    9%
  • Micro-cap
    3%

The market capitalization breakdown shows a preference for mega (39%) and big (27%) cap stocks, which are typically less volatile than smaller companies. However, the relatively lower allocation to small (9%) and micro (3%) caps may mean missing out on higher growth potential these companies can offer. Balancing the mix with more small and micro-cap investments could enhance returns, albeit with increased risk.

Redundant positions Info

  • Baron Durable Advantage Fund Retail Shares
    iShares S&P 100 ETF
    High correlation

The high correlation between the Baron Durable Advantage Fund and the iShares S&P 100 ETF indicates overlapping investments, reducing the portfolio's diversification efficiency. Diversification aims to spread risk across uncorrelated assets, so identifying and reducing redundancies can enhance the portfolio's risk-adjusted returns. A deeper analysis to remove or replace overlapping assets could improve diversification and performance potential.

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 portfolio's current configuration suggests room for optimization, particularly by addressing the redundancy among highly correlated assets. Utilizing the Efficient Frontier concept could identify an asset mix that offers the highest expected return for a given level of risk. This process might involve reallocating capital from overlapping assets to underrepresented sectors, asset classes, or geographies, enhancing the portfolio's diversification and potential for risk-adjusted returns.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.60%
  • BARON OPPORTUNITY FUND BARON OPPORTUNITY FUND 4.50%
  • THE DISCIPLINED GROWTH INVESTORS FUND THE DISCIPLINED GROWTH INVESTORS FUND 1.00%
  • iShares MSCI Emerging Markets ex China 2.60%
  • WisdomTree International Hedged Quality Dividend Growth Fund 2.60%
  • Vanguard Mega Cap Value Index Fund ETF Shares 2.10%
  • iShares S&P 100 ETF 0.90%
  • PRUDENTIAL JENNISON INTERNATIONAL OPPORTUNITIES FUND CLASS Z 0.10%
  • VICTORY RS PARTNERS FUND CLASS A 5.60%
  • Weighted yield (per year) 2.18%

The portfolio's average dividend yield of 2.18% contributes to its total return, providing a steady income stream in addition to capital gains. While the focus on growth stocks often means a lower yield, the current balance appears to offer a reasonable compromise between income and growth. However, investors seeking higher income might consider reallocating towards assets with higher yield potential, keeping in mind the possible trade-off with growth prospects.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Baron Durable Advantage Fund Retail Shares 0.95%
  • BARON DISCOVERY FUND BARON DISCOVERY FUND 1.32%
  • BARON OPPORTUNITY FUND BARON OPPORTUNITY FUND 1.31%
  • THE DISCIPLINED GROWTH INVESTORS FUND THE DISCIPLINED GROWTH INVESTORS FUND 0.78%
  • iShares MSCI Emerging Markets ex China 0.25%
  • WisdomTree International Hedged Quality Dividend Growth Fund 0.58%
  • Vanguard Mega Cap Value Index Fund ETF Shares 0.07%
  • iShares S&P 100 ETF 0.20%
  • PRUDENTIAL JENNISON INTERNATIONAL OPPORTUNITIES FUND CLASS Z 0.90%
  • VICTORY RS PARTNERS FUND CLASS A 1.33%
  • Weighted costs total (per year) 0.74%

With a Total Expense Ratio (TER) averaging 0.74%, the portfolio's costs are within a reasonable range, though some funds have notably higher fees. Costs can significantly impact long-term returns, and lower-cost alternatives with similar objectives might be available. Evaluating the cost-effectiveness of each holding and considering lower-cost options could enhance net returns over time.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey