Growth-focused portfolio with strong tech orientation and moderate global exposure

Report created on Aug 1, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio showcases a significant emphasis on growth, with over half allocated to large-cap and small-cap growth ETFs. The inclusion of both U.S. and international stock index funds indicates an effort towards geographical diversification, albeit with a strong bias towards North American equities. The presence of a real estate ETF adds a slight diversification in asset class, although stocks dominate the composition. This setup suggests a strategy aiming for high growth potential, leveraging the volatility and upside of growth sectors, particularly in technology.

Growth Info

Historical performance, as indicated by a CAGR of 13.60%, positions this portfolio well above average returns for a diversified growth strategy. The max drawdown of -34.51% aligns with expected volatility for growth-focused investments, particularly in tech-heavy allocations. Days contributing most to returns being limited in number highlight the portfolio's reliance on significant market movements for gains. Such performance is characteristic of growth investments, where periods of rapid appreciation can significantly impact overall returns.

Projection Info

The Monte Carlo simulation, projecting a median increase of 425.9%, underscores the portfolio's potential for substantial growth, albeit with considerable variability. The range of outcomes, from the 5th to the 67th percentile, illustrates the inherent uncertainty in such growth-oriented investments. It's important to note that while these projections offer insight, they are based on historical data and cannot guarantee future performance. This method helps in understanding potential volatility and the range of outcomes but should be viewed as one of many tools in assessing investment strategies.

Asset classes Info

  • Stocks
    94%
  • Real Estate
    6%
  • Cash
    1%

With 94% in stocks and 6% in real estate, the portfolio is heavily skewed towards high-growth potential assets, leaving minimal room for fixed income or alternative investments that could provide stability during market downturns. This allocation is consistent with a growth-oriented strategy but may benefit from increased diversification into asset classes that offer counter-cyclical performance characteristics, enhancing the portfolio's resilience against market volatility.

Sectors Info

  • Technology
    34%
  • Industrials
    11%
  • Consumer Discretionary
    10%
  • Financials
    10%
  • Health Care
    9%
  • Real Estate
    8%
  • Telecommunications
    8%
  • Consumer Staples
    4%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    1%

The sector allocation reveals a strong tilt towards technology, which could lead to higher volatility, especially in market conditions unfavorable to tech stocks. While the diversification across industrials, consumer cyclicals, and financial services mitigates some risk, the concentration in tech underscores the portfolio's aggressive growth stance. Balancing sector exposure could reduce volatility without significantly compromising growth potential, especially by increasing allocations to less cyclical sectors.

Regions Info

  • North America
    81%
  • Europe Developed
    10%
  • Japan
    4%
  • Asia Developed
    2%
  • Asia Emerging
    2%
  • Australasia
    1%

The geographic distribution, with a dominant 81% in North America, reflects a home bias that may limit exposure to potential growth in other regions. While developed Europe and Japan provide some international diversification, the negligible presence in emerging markets and other developed regions suggests an opportunity to enhance global exposure. Diversifying more broadly could capture growth in dynamic economies outside the U.S. and reduce geographic concentration risk.

Market capitalization Info

  • Mega-cap
    36%
  • Mid-cap
    21%
  • Large-cap
    21%
  • Small-cap
    18%
  • Micro-cap
    3%

The market capitalization breakdown shows a balanced mix across mega, big, medium, and small caps, supporting diversification within equity holdings. This blend allows for capturing growth across different business sizes, from established leaders (mega and big caps) to more nimble, rapidly growing companies (medium and small caps). However, the relatively lower allocation to micro caps suggests a cautious approach to the highest volatility segment of the market.

Redundant positions Info

  • iShares Core MSCI EAFE ETF
    Vanguard Total International Stock Index Fund ETF Shares
    High correlation
  • Vanguard S&P 500 ETF
    Schwab U.S. Large-Cap Growth ETF
    iShares S&P 500 Growth ETF
    High correlation

The analysis identifies overlapping holdings among ETFs, particularly those tracking the S&P 500 and international stocks, which could dilute diversification benefits. Reducing redundancy by consolidating similar positions could streamline the portfolio and potentially enhance efficiency by focusing on distinct growth drivers without sacrificing diversification.

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 risk-return profile suggests room for optimization, particularly by addressing the identified asset correlation issues. Adjusting the allocation to reduce overlap and enhance true diversification could move the portfolio closer to the Efficient Frontier, achieving a more favorable balance between risk and return. This optimization process should focus on maintaining growth potential while improving resilience to market fluctuations.

Dividends Info

  • iShares Core MSCI EAFE ETF 3.20%
  • iShares S&P 500 Growth ETF 0.40%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • iShares Semiconductor ETF 0.70%
  • Vanguard Small-Cap Growth Index Fund ETF Shares 0.50%
  • Vanguard Real Estate Index Fund ETF Shares 3.90%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.22%

The dividend yield of 1.22% reflects a focus on capital appreciation over income generation, typical of growth-oriented portfolios. While dividends contribute to total returns, the relatively low yield underscores the prioritization of assets with reinvestment and price appreciation potential. For investors seeking growth, this approach is appropriate, though incorporating higher-yielding assets could offer income benefits without significantly detracting from growth objectives.

Ongoing product costs Info

  • iShares Core MSCI EAFE ETF 0.07%
  • iShares S&P 500 Growth ETF 0.18%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • iShares Semiconductor ETF 0.35%
  • Vanguard Small-Cap Growth Index Fund ETF Shares 0.07%
  • Vanguard Real Estate Index Fund ETF Shares 0.12%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.08%

With a total expense ratio (TER) of 0.08%, the portfolio benefits from low costs, enhancing net returns over the long term. Low costs are crucial for growth strategies, where compounding plays a significant role in wealth accumulation. This efficient cost structure is a strong foundation, ensuring more of the portfolio's gross returns contribute to wealth growth.

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