Growth-oriented portfolio with a strong foundation in diversified ETFs and a focus on technology

Report created on Aug 18, 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 primarily consists of a mix of ETFs and a single common stock, with a significant allocation towards the VANGUARD TARGET RETIREMENT 2055 FUND INVESTOR SHARES. This fund, along with various other ETFs, provides a broad exposure to the stock market, including sectors like technology, financial services, and industrials. The inclusion of a target retirement fund suggests a long-term investment horizon, aiming for growth while gradually reducing risk as the target date approaches. The diversification across different sectors and asset classes, with a slight tilt towards technology, indicates a strategy that balances growth with risk management.

Growth Info

Historical performance showcases a Compound Annual Growth Rate (CAGR) of 12.61%, with a significant maximum drawdown indicating periods of high volatility. The days contributing to 90% of the returns highlight the portfolio's susceptibility to short-term market movements. Comparing this performance to benchmarks would provide context, but such returns suggest the portfolio has navigated market conditions effectively, emphasizing the importance of a long-term perspective in investing.

Projection Info

Forward projections, based on Monte Carlo simulations, suggest a wide range of potential outcomes, with a median increase significantly higher than the initial investment. This underscores the inherent uncertainty in investing, where numerous simulations can help investors understand potential risks and rewards. However, it's crucial to remember that these projections are hypothetical and depend heavily on past performance, which is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    92%
  • Bonds
    6%
  • Cash
    2%

The portfolio's asset allocation leans heavily towards stocks (92%), with a minor allocation in bonds (6%) and cash (2%). This composition aligns with a growth-oriented strategy, aiming for higher returns at the cost of increased volatility. The stock-heavy approach is suitable for long-term investors who can withstand periods of market downturns, emphasizing the importance of balancing growth aspirations with risk tolerance.

Sectors Info

  • Technology
    26%
  • Financials
    17%
  • Industrials
    11%
  • Health Care
    9%
  • Consumer Discretionary
    8%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    4%
  • Consumer Discretionary
    3%
  • Real Estate
    3%
  • Utilities
    3%

Sector allocation reveals a strong emphasis on technology, financial services, and industrials, which are sectors known for their growth potential. However, the heavy concentration in technology could expose the portfolio to sector-specific risks, such as regulatory changes or market sentiment shifts. Diversification across sectors is crucial in mitigating such risks, suggesting a review of sector allocations might be beneficial to ensure it aligns with the investor's risk tolerance and investment goals.

Regions Info

  • North America
    71%
  • Europe Developed
    12%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic exposure is predominantly in North America, with meaningful allocations in developed Europe and emerging Asian markets. This distribution supports diversification across different economic environments, reducing the impact of regional downturns. However, the relatively low exposure to emerging markets and specific regions like Latin America and Africa/Middle East might limit growth potential from these high-growth areas, suggesting an opportunity to reassess geographic allocation for broader global exposure.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    27%
  • Mid-cap
    18%
  • Small-cap
    6%
  • Micro-cap
    3%

The portfolio's market capitalization exposure is well-distributed among mega, big, and medium-sized companies, with a smaller portion in small and micro-cap stocks. This distribution supports stability through investments in large, established companies while still capturing growth potential from smaller firms. However, the relatively lower allocation to small and micro-cap stocks could be a missed opportunity for higher growth, albeit at a higher risk.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Vanguard S&P 500 ETF
    VANGUARD TARGET RETIREMENT 2055 FUND INVESTOR SHARES
    Vanguard Information Technology Index Fund ETF Shares
    Vanguard Growth Index Fund ETF Shares
    Vanguard Total World Stock Index Fund ETF Shares
    High correlation

The high correlation among the ETFs, particularly those tracking broad market indexes and the technology sector, indicates overlapping exposures that may not provide the intended diversification benefits. This redundancy can amplify risks during market downturns, highlighting the importance of analyzing the underlying assets of ETFs to ensure they contribute to the portfolio's 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 allocation shows room for optimization, particularly concerning the removal of overlapping assets to enhance diversification. By addressing the high correlation among holdings, investors can improve the risk-return profile, potentially moving closer to the Efficient Frontier. This optimization process involves evaluating each investment's contribution to overall portfolio risk and return, ensuring that each asset plays a distinct role in achieving investment goals.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • AT&T Inc 3.90%
  • VANGUARD TARGET RETIREMENT 2055 FUND INVESTOR SHARES 1.90%
  • Vanguard Information Technology Index Fund ETF Shares 0.40%
  • Vanguard Mid-Cap Value Index Fund ETF Shares 2.20%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Weighted yield (per year) 1.73%

The portfolio's dividend yield stands at 1.73%, contributing to its total return. While the focus on growth-oriented investments often comes at the expense of immediate income, dividends can provide a steady cash flow and mitigate volatility. The varied dividend yields across holdings suggest a balanced approach, combining growth and income strategies. However, investors seeking higher income might consider reallocating towards assets with higher dividend yields.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • VANGUARD TARGET RETIREMENT 2055 FUND INVESTOR SHARES 0.08%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Mid-Cap Value Index Fund ETF Shares 0.07%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.08%

With a total expense ratio (TER) of 0.08%, the portfolio benefits from low costs, which can significantly enhance long-term returns. The focus on low-cost ETFs demonstrates an efficient approach to investing, where minimizing expenses is as crucial as selecting the right assets. Investors should continue to monitor costs, as even small differences can compound over time, affecting overall portfolio performance.

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