Growth-focused portfolio with a global reach and a tilt towards technology and emerging markets

Report created on May 6, 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 constructed with a growth orientation, prominently featuring equity ETFs across various geographies and sectors. The Vanguard S&P 500 ETF, with a 30% allocation, anchors the portfolio in large-cap US equities. The Schwab Emerging Markets Equity ETF and Vanguard Total World Stock Index Fund ETF Shares, each with a 20% stake, broaden the portfolio's global exposure. The inclusion of the Global X Robotics & Artificial Intelligence ETF and Fidelity Total Market Index Fund, both at 15%, introduces a thematic investment in technology and a comprehensive exposure to the total market, respectively. This composition underscores a strategic emphasis on growth sectors and diversification across market capitalizations and geographies.

Growth Info

Historical performance, as indicated by a CAGR of 12.26%, showcases the portfolio's robust growth potential. The maximum drawdown of -33.50% reflects the inherent volatility associated with growth-oriented investments, particularly those with significant exposure to technology and emerging markets. The concentration on days contributing to 90% of returns highlights the portfolio's sensitivity to market swings, underscoring the importance of a long-term investment horizon to mitigate short-term volatility.

Projection Info

Monte Carlo simulations, employing 1,000 iterations, offer a probabilistic view of future returns, predicting a median annualized return of 12.45%. The wide range of outcomes, from the 5th percentile at 10.7% to the 67th percentile at 462.3%, illustrates the potential for significant variability in returns. This underscores the importance of maintaining a diversified portfolio and a long-term perspective to navigate the inherent uncertainties in market performance.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily skewed towards stocks, with a 99% allocation, complemented by a minimal cash position. This allocation is consistent with its growth profile but may expose the portfolio to higher volatility during market downturns. The absence of bonds and other asset classes limits the portfolio's ability to hedge against equity market volatility, potentially increasing the risk of significant drawdowns during turbulent periods.

Sectors Info

  • Technology
    29%
  • Financials
    15%
  • Industrials
    13%
  • Health Care
    10%
  • Consumer Discretionary
    8%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%
  • Consumer Discretionary
    2%

Sectoral allocation reveals a pronounced emphasis on technology, financial services, and industrials, which align with the portfolio's growth objectives. However, this concentration may also amplify exposure to sector-specific risks, such as regulatory changes or economic cycles affecting these industries. Diversifying across a broader range of sectors could mitigate these risks while still capturing growth opportunities.

Regions Info

  • North America
    65%
  • Asia Emerging
    14%
  • Japan
    6%
  • Europe Developed
    5%
  • Asia Developed
    5%
  • Africa/Middle East
    3%
  • Latin America
    2%

Geographic distribution underscores a strong bias towards North America and significant allocations to emerging markets and developed regions in Asia and Europe. This global diversification enhances the portfolio's growth prospects by tapping into a variety of economic environments and market dynamics. However, the underrepresentation of certain regions, like Australasia and Europe Emerging, suggests potential areas for further diversification to capture global growth trends more comprehensively.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    31%
  • Mid-cap
    17%
  • Small-cap
    6%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown, with a dominant focus on mega and big-cap stocks, aligns with its growth and stability objectives. However, the relatively lower allocation to small and micro-cap stocks limits exposure to high-growth potential segments of the market. Increasing allocations to smaller caps could introduce higher growth prospects, albeit with increased volatility.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Fidelity Total Market Index Fund
    Vanguard Total World Stock Index Fund ETF Shares
    High correlation

The high correlation among the Vanguard S&P 500 ETF, Fidelity Total Market Index Fund, and Vanguard Total World Stock Index Fund ETF Shares indicates redundancy, limiting the diversification benefits. This overlap suggests an opportunity to reassess and potentially reallocate assets to reduce redundancy and enhance the portfolio's risk-adjusted 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.

The portfolio's current asset allocation, while growth-focused, shows room for optimization, particularly by addressing the high correlation among certain holdings. Utilizing the Efficient Frontier could identify an asset mix that achieves the best possible risk-return ratio, potentially improving diversification and reducing volatility without sacrificing growth potential. This optimization process should prioritize eliminating redundant exposures and exploring uncorrelated assets to enhance portfolio efficiency.

Dividends Info

  • Global X Robotics & Artificial Intelligence ETF 0.10%
  • Fidelity Total Market Index Fund 1.10%
  • Schwab Emerging Markets Equity ETF 2.80%
  • Vanguard S&P 500 ETF 1.40%
  • Vanguard Total World Stock Index Fund ETF Shares 1.90%
  • Weighted yield (per year) 1.54%

The portfolio's dividend yield, averaging 1.54%, contributes to its total return, providing a steady income stream in addition to capital appreciation. The varied yields across holdings, from 0.10% to 2.80%, reflect a balance between growth investments and income-generating assets. Optimizing the dividend yield within the context of growth objectives and tax considerations could enhance the portfolio's income component without significantly compromising its growth potential.

Ongoing product costs Info

  • Global X Robotics & Artificial Intelligence ETF 0.68%
  • Schwab Emerging Markets Equity ETF 0.11%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.15%

With a total expense ratio (TER) of 0.15%, the portfolio benefits from relatively low costs, which is crucial for maximizing long-term returns. The varying costs of individual holdings, from 0.03% to 0.68%, highlight the importance of cost-conscious investment selection. Continually monitoring and minimizing investment costs remains a key strategy for enhancing portfolio efficiency.

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