Growth focused equity portfolio with strong technology tilt and low cost globally diversified dividend layer
Report created on Jun 13, 2024Risk profile
5/7
Diversification profile
3/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 34.00% -
VG Vanguard Information Technology Index Fund ETF Shares
VGT - US92204A7028 33.00% -
VI Vanguard International Dividend Appreciation Index Fund ETF Shares
VIGI - US9219468108 33.00%
This portfolio is a simple three-fund, 100% stock setup with roughly equal weights in each ETF. One ETF tracks a broad US large-cap index, another focuses specifically on information technology, and the third adds international stocks with a dividend-growth focus. This structure creates a clear core-and-satellite pattern: the S&P 500 fund is the broad core, while tech and international dividends act as more targeted satellites. Such a layout is easy to understand and maintain, which is a practical benefit. It also explains why the portfolio carries a growth-oriented risk profile: there are no bonds or cash buffers to soften equity market swings over time.
Growth
Over the last decade, a hypothetical $1,000 investment grew to about $5,141, implying a compound annual growth rate (CAGR) of 17.87%. CAGR is like your average speed on a long road trip, smoothing out bumps to show the typical yearly gain. This return comfortably outpaced both the US market and the global market benchmarks. The max drawdown of about -32% during early 2020 was similar to broad markets, highlighting that while returns were strong, downside shocks were still sizable. Only 41 days made up 90% of the gains, underlining how a small number of powerful up days drove much of the long-term result.
Projection
The Monte Carlo projection uses many randomized “what if” paths based on historical behavior to estimate future ranges. Here, 1,000 simulations of the next 15 years show a median outcome of about $2,731 from $1,000 invested, with most scenarios falling between roughly $1,816 and $4,144. Monte Carlo doesn’t predict a single future; it shows a spread of plausible outcomes given past volatility and returns. The average simulated annual return of about 8% is lower than the historical 17.9%, which is a useful reminder that past results were strong and may not repeat. Around three-quarters of simulations ended with a positive result.
Asset classes
- Stocks 100%
All of the portfolio sits in stocks, with no allocation to bonds, cash, or alternatives. That all-equity stance usually means higher expected long-term growth alongside larger and more frequent swings in account value. Compared with many blended portfolios that mix stocks and bonds, this one is clearly tilted toward return rather than stability. The risk score of 5/7 lines up with this profile. This fully invested equity approach keeps things simple and transparent, but it also means that when global stock markets move sharply—up or down—this portfolio is likely to move in step, without much cushioning.
Sectors
- Technology 50%
- Financials 13%
- Industrials 9%
- Health Care 8%
- Consumer Staples 5%
- Consumer Discretionary 4%
- Telecommunications 4%
- Utilities 2%
- Basic Materials 2%
- Energy 2%
- Real Estate 1%
Sector-wise, technology stands out at about 50% of the equity exposure, with the rest spread across financials, industrials, health care, consumer areas, and smaller slices of other sectors. That tech weight is much higher than in broad global or US indices, where tech is a large but not majority share. Tech-heavy portfolios often benefit during periods of innovation, digital adoption, and low or falling interest rates, as investors pay more for growth. The flip side is that they can be more sensitive when rates rise or when enthusiasm for high-growth companies cools, which can amplify sector-specific downturns.
Regions
- North America 74%
- Europe Developed 13%
- Japan 10%
- Asia Emerging 2%
- Asia Developed 1%
Geographically, about three-quarters of the portfolio is in North America, with most of the remainder in developed Europe and Japan, plus small allocations to other Asian markets. This gives a strong home bias toward the US and Canada, which has been beneficial in recent years as US equities outperformed many regions. Compared with a pure global index, this portfolio leans more heavily into North America and less into emerging markets. The international dividend fund does add some regional diversification and currency exposure, helping reduce reliance on a single economy while still keeping the US as the main growth engine.
Market capitalization
- Mega-cap 52%
- Large-cap 29%
- Mid-cap 14%
- Small-cap 3%
- Micro-cap 1%
The portfolio is dominated by mega- and large-cap companies, which together make up over 80% of the exposure. These are typically established firms with deep markets and broad analyst coverage. Mid-caps, small-caps, and micro-caps are present but modest, totaling under 20%. Larger companies often bring somewhat steadier earnings and better liquidity, while smaller firms can be more volatile but sometimes deliver periods of stronger growth. This size mix aligns fairly closely with major market-cap-weighted benchmarks, meaning that most of the portfolio’s behavior will track the fortunes of the biggest global corporations rather than smaller, more niche players.
True holdings
-
NV NVIDIA Corporation 8.23%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
AA Apple Inc. 7.76%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 5.44%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
AV Broadcom Inc 2.36%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 1.40%
Part of fund(s):- Vanguard S&P 500 ETF
-
RY Royal Bank of Canada 1.32%
Part of fund(s):- Vanguard International Dividend Appreciation Index Fund ETF Shares
-
NE Nestle S.A. 1.28%
Part of fund(s):- Vanguard International Dividend Appreciation Index Fund ETF Shares
-
NO Novartis AG 1.27%
Part of fund(s):- Vanguard International Dividend Appreciation Index Fund ETF Shares
-
MU Micron Technology Inc 1.26%
Part of fund(s):- Vanguard Information Technology Index Fund ETF Shares
-
83 Mitsubishi UFJ Financial Group Inc 1.24%
Part of fund(s):- Vanguard International Dividend Appreciation Index Fund ETF Shares
- Top 10 total 31.57%
Looking through the ETFs’ top holdings, certain names appear prominently across multiple funds, creating hidden concentration. NVIDIA, Apple, and Microsoft together account for over 21% of the portfolio’s look-through exposure, with other big positions like Broadcom and Amazon adding to this cluster in large US tech and growth franchises. Because only ETF top-10 holdings are captured, the true overlap across all holdings is likely somewhat higher than reported. This pattern is common in ETF portfolios that combine broad US indices and tech-focused funds. It means that the actual diversification by individual company is lower than the number of ETFs might initially suggest.
Factors
Factor exposure is mostly neutral across size, momentum, quality, yield, and low volatility, meaning the portfolio behaves broadly like the market along those dimensions. The one notable reading is value, which shows a low exposure. In factor terms, “value” means cheaper stocks relative to fundamentals like earnings or book value. A mild tilt away from value often implies a tilt toward growth characteristics—companies priced for higher future expansion. Such portfolios tend to benefit when investors reward growth stories but can lag during periods when cheaper, more cyclical businesses come back into favor. Overall, the factor profile looks relatively well-balanced aside from that growth-oriented lean.
Risk contribution
-
Vanguard Information Technology Index Fund ETF Shares
Weight: 33.00% 42.7% -
Vanguard S&P 500 ETF
Weight: 34.00% 32.3% -
Vanguard International Dividend Appreciation Index Fund ETF Shares
Weight: 33.00% 25.0%
Risk contribution highlights how much each ETF drives the portfolio’s overall ups and downs, which can differ from its simple weight. The dedicated technology ETF is 33% of the capital but contributes about 43% of total risk, indicating it is the main volatility driver. The S&P 500 ETF’s risk share roughly matches its weight, while the international dividend ETF contributes less risk than its 33% weight would suggest. This pattern reflects that tech stocks are typically more volatile, whereas dividend-focused international stocks can be steadier. Even with equal weightings, the portfolio’s behavior is more heavily shaped by the tech sleeve than the others.
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 efficient frontier analysis shows that the current portfolio lies on or very close to the frontier, which represents the best expected return for each risk level using these three holdings. Its Sharpe ratio of 0.69—where Sharpe measures return per unit of volatility relative to a risk-free rate—is solid but lower than the theoretical max of 0.97 achievable with a different mix. Importantly, though, the current allocation is already efficient at its chosen risk. That means, based on past data, you’re not leaving obvious risk/return benefits on the table within this specific trio, even if a more aggressive mix could chase higher expected returns.
Dividends
- Vanguard Information Technology Index Fund ETF Shares 0.40%
- Vanguard International Dividend Appreciation Index Fund ETF Shares 2.00%
- Vanguard S&P 500 ETF 1.00%
- Weighted yield (per year) 1.13%
The portfolio’s overall dividend yield sits around 1.13%, blending a low-yield tech fund, a moderate-yield US market fund, and a higher-yield international dividend-growth fund. Dividends are the cash payouts companies share with shareholders, and over long periods they can be a meaningful portion of total return. In this case, capital appreciation has clearly been the main driver, with income playing a secondary role. The international dividend ETF is doing most of the heavy lifting for income, while the tech-heavy portion prioritizes reinvested growth. This combination aligns with a growth-first mindset, with some added stability from companies committed to regular dividend increases.
Ongoing product costs
- Vanguard Information Technology Index Fund ETF Shares 0.10%
- Vanguard International Dividend Appreciation Index Fund ETF Shares 0.15%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.09%
Costs are impressively low, with a total expense ratio (TER) of roughly 0.09% across the three ETFs. TER is the annual fee charged by funds, expressed as a percentage of assets—like a small haircut on performance each year. Compared with typical active funds or even many index products, this level is very competitive and supports better long-term compounding. Low costs are one of the few factors investors can reliably control, so having all three ETFs in this range is a structural strength. It means more of the portfolio’s returns stay in the account rather than being paid out in ongoing management fees.
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