A growth-focused portfolio with a strong emphasis on American equities and retirement planning
Report created on Jul 26, 2025Risk profile
5/7
Diversification profile
3/5
Positions
-
AG GROWTH FUND OF AMERICA CLASS A
AGTHX - US3998741066 55.00% -
AA American Funds 2065 Target Date Retirement Fund
AAOTX 45.00%
The portfolio is heavily weighted towards two funds: the Growth Fund of America Class A and the American Funds 2065 Target Date Retirement Fund, comprising 55% and 45% of the portfolio, respectively. This structure highlights a strategic focus on growth-oriented investments, primarily in the American market, with a long-term horizon aimed at retirement. The allocation between these two funds indicates a preference for a mix of aggressive growth potential and a gradually more conservative approach as the target retirement date approaches.
Growth
Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 16.38%, which is quite impressive. However, it's important to note the maximum drawdown of -35.70%, indicating significant volatility and risk. The days contributing to 90% of returns being concentrated in just 23 days suggests that the portfolio's performance is heavily reliant on a few high-performing days, emphasizing the importance of staying invested over the long term to capture these gains.
Projection
Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of potential outcomes. The 50th percentile outcome at 714.4% growth is particularly optimistic, but it's crucial to remember that these projections are not guarantees. They serve as a useful tool for understanding potential volatility and the importance of risk management in achieving long-term goals.
Asset classes
- Stocks 52%
- Cash 2%
- No data 1%
The portfolio's asset allocation is primarily in stocks (52%), with a small percentage in cash (2%). This high allocation to equities is typical for growth-oriented portfolios aiming for higher returns, albeit with increased risk. The minimal cash holding suggests a strategy that is fully invested, aiming to maximize market participation and growth potential over time.
Sectors
- Technology 16%
- Health Care 8%
- Telecommunications 8%
- Consumer Discretionary 8%
- Industrials 6%
- Financials 5%
- Consumer Staples 1%
- Energy 1%
- Basic Materials 1%
The sectoral allocation shows a diversified yet focused approach, with the largest allocations in technology, healthcare, and communication services, each comprising significant portions of the portfolio. This reflects a concentration in sectors that potentially offer high growth but also come with higher volatility and risk. The relatively lower exposure to traditionally defensive sectors like consumer defensive, energy, and utilities indicates a clear growth over stability preference.
Regions
- North America 51%
- Europe Developed 2%
- Asia Developed 1%
Geographic allocation is predominantly in North America (51%), with minimal exposure to developed Europe and Asia, and no significant investments in Latin America, Japan, or emerging Asian markets. This concentration in the American market aligns with the portfolio's growth orientation but may limit global diversification benefits and exposure to potential growth in emerging markets.
Market capitalization
- Mega-cap 26%
- Large-cap 16%
- Mid-cap 9%
- Small-cap 1%
The market capitalization breakdown shows a preference for mega (26%) and big (16%) cap stocks, with lesser exposure to medium, small, and micro caps. This suggests a bias towards more established, potentially less volatile companies, which is a common strategy for growth portfolios focusing on long-term appreciation.
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 allocation suggests it's positioned near the Efficient Frontier, indicating an effective balance between risk and return based on historical data. However, it's essential to periodically review this balance, especially as market conditions and personal financial goals evolve. Adjusting allocations could further optimize the risk-return profile, even within the constraints of the current asset classes and funds.
Dividends
- American Funds 2065 Target Date Retirement Fund 2.20%
- GROWTH FUND OF AMERICA CLASS A 0.40%
- Weighted yield (per year) 1.21%
The dividend yield from the American Funds 2065 Target Date Retirement Fund contributes significantly to the portfolio's total yield of 1.21%. While not the primary focus of a growth-oriented portfolio, these dividends provide a source of income, which can be reinvested for compounding growth or used as income closer to retirement.
Ongoing product costs
- GROWTH FUND OF AMERICA CLASS A 0.61%
- Weighted costs total (per year) 0.34%
With total portfolio costs at 0.34%, the portfolio is efficiently managed in terms of expenses, which is crucial for maximizing long-term returns. Lower costs mean more of the investment's return is retained by the investor, a key factor in accumulating wealth over time.
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