A growth-oriented portfolio with high tech exposure and a solid foundation in global equities

Report created on Aug 1, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is structured with a heavy emphasis on equity, comprising 40% Vanguard S&P 500 ETF, 30% NVIDIA Corporation stock, 25% Vanguard Total International Stock Index Fund ETF Shares, and a 5% allocation in iShares U.S. Treasury Bond ETF. This composition underlines a growth-focused strategy, leveraging the potential high returns of technology stocks and diversified international exposure, while maintaining a minimal hedge against volatility through treasury bonds.

Growth Info

Historical performance shows a remarkable Compound Annual Growth Rate (CAGR) of 29.27%, though it's important to note the maximum drawdown of -63.43%. This suggests significant volatility, with a concentration in high-growth assets contributing to both substantial gains and notable declines. Given that 90% of returns came from just 62 days, this portfolio's performance underscores the importance of staying invested through market fluctuations to capture peak growth days.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 1,616% suggesting strong growth potential. However, the broad spread between the 5th percentile (189.6% increase) and the 67th percentile (2,772.7% increase) highlights the uncertainty inherent in relying on past performance to predict future results. These simulations, while useful for understanding potential volatility and reward, should not be the sole basis for investment decisions.

Asset classes Info

  • Stocks
    94%
  • Bonds
    5%
  • Cash
    1%

The asset class distribution, with 94% in stocks and 5% in bonds, positions this portfolio for aggressive growth. This high equity allocation aligns with the portfolio's growth profile but comes with increased market risk. The minimal bond holding offers slight diversification benefits, though its impact on overall risk mitigation is limited given the portfolio's aggressive stance.

Sectors Info

  • Technology
    46%
  • Financials
    11%
  • Industrials
    7%
  • Consumer Discretionary
    7%
  • Health Care
    6%
  • Telecommunications
    5%
  • Consumer Staples
    4%
  • Basic Materials
    2%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation is heavily skewed towards technology, representing 46% of the portfolio, primarily due to the large NVIDIA Corporation holding. While this concentration has likely contributed to the portfolio's high historical returns, it also increases vulnerability to sector-specific risks. Balancing sector exposure could reduce volatility without significantly compromising growth potential.

Regions Info

  • North America
    72%
  • Europe Developed
    10%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic exposure is predominantly in North America (72%), with meaningful diversification into developed European markets (10%) and emerging Asian markets (4%). This distribution supports global diversification, reducing the impact of regional downturns. However, the portfolio may benefit from increased exposure to emerging markets and other developed regions to capture broader global growth trends.

Market capitalization Info

  • Mega-cap
    60%
  • Large-cap
    22%
  • Mid-cap
    11%
  • Small-cap
    1%

The focus on mega (60%) and big (22%) capitalization stocks underlines a preference for established, large-scale companies, likely contributing to the portfolio's growth and stability. Medium, small, and micro caps represent a smaller portion, suggesting a conservative approach to risk. Incorporating more medium-cap stocks could enhance growth potential and diversification without drastically increasing risk.

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.

Given the portfolio's current allocation, optimizing for the Efficient Frontier could enhance the risk-return profile. This might involve adjusting the equity-to-bond ratio or diversifying further across sectors and geographies. Optimization seeks to achieve the highest possible returns for a given level of risk, though it's important to remember that it's based on historical data, which is not a guaranteed predictor of future performance.

Dividends Info

  • iShares U.S. Treasury Bond ETF 3.40%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.38%

The overall dividend yield of 1.38% reflects the portfolio's growth orientation, favoring capital appreciation over income. While the yields from the Vanguard Total International Stock Index Fund ETF Shares and iShares U.S. Treasury Bond ETF bolster income slightly, investors seeking higher income might consider increasing allocations to higher-yielding assets.

Ongoing product costs Info

  • iShares U.S. Treasury Bond ETF 0.05%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.03%

The portfolio's low total expense ratio (TER) of 0.03% is commendably efficient, maximizing net returns for the investor. This cost-effectiveness is crucial for long-term growth, as lower costs compound significantly over time. Maintaining focus on low-cost investments will continue to serve the portfolio well.

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