A growth-focused portfolio with a strong tilt towards large-cap US equities

Report created on Feb 17, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards US equities, with a significant portion allocated to large-cap value and growth ETFs. The Vanguard Mega Cap Value Index Fund and Schwab U.S. Large-Cap Growth ETF comprise more than half of the portfolio. This composition suggests a focus on growth within stable, large companies. Compared to benchmark compositions, this portfolio may lack exposure to bonds or other asset classes, indicating a higher risk tolerance. A more balanced allocation could be achieved by introducing fixed income or alternative investments to reduce volatility and enhance diversification.

Growth Info

Historically, the portfolio has delivered a strong Compound Annual Growth Rate (CAGR) of 15.65%, showcasing impressive growth potential. However, it experienced a significant maximum drawdown of -35.52%, indicating vulnerability during market downturns. Compared to benchmarks, this performance suggests the portfolio has successfully captured market upswings but also faced substantial risks. While historical data provides valuable insights, it's important to remember that past performance does not guarantee future results. Consider strategies to mitigate drawdowns, such as diversifying into less correlated assets or incorporating defensive sectors.

Projection Info

Monte Carlo simulations project potential future outcomes based on historical data, offering a range of possible returns. With 1,000 simulations, the portfolio shows a 50th percentile outcome of 483.6% and a 67th percentile of 770.0%. This suggests a high likelihood of positive returns, with 977 simulations yielding gains. However, simulations rely on historical data, which may not fully predict future market conditions. Consider stress-testing the portfolio under various scenarios to better understand potential risks and opportunities. Regularly reviewing and adjusting allocations can help align with changing market dynamics.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely comprised of stocks, lacking diversification across other asset classes like bonds or cash. This single-asset focus aligns with a high-risk, high-reward strategy, potentially amplifying volatility. Compared to benchmarks, which often include a mix of asset classes, this portfolio may benefit from incorporating fixed income or alternative investments to enhance stability and reduce risk. Diversifying across asset classes can provide a buffer during economic downturns, helping to preserve capital and maintain steady growth over time.

Sectors Info

  • Technology
    22%
  • Financials
    16%
  • Industrials
    12%
  • Health Care
    12%
  • Consumer Discretionary
    11%
  • Telecommunications
    6%
  • Consumer Staples
    6%
  • Energy
    6%
  • Basic Materials
    4%
  • Utilities
    2%
  • Real Estate
    2%

The portfolio's sector allocation is diverse, with notable concentrations in technology (22%), financial services (16%), and industrials (12%). This aligns closely with common benchmark allocations, indicating a balanced approach. However, the tech-heavy focus could lead to increased volatility, especially during periods of rising interest rates. Maintaining exposure to a variety of sectors can mitigate sector-specific risks and provide resilience against market fluctuations. Consider periodically reviewing sector allocations to ensure they align with broader market trends and personal investment goals.

Regions Info

  • North America
    83%
  • Europe Developed
    10%
  • Japan
    5%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is heavily weighted towards North America (83%), with limited exposure to other regions. This concentration may limit diversification benefits, particularly if the US market underperforms. Compared to benchmarks, which often include more global exposure, this portfolio could benefit from increased international diversification. Expanding geographic allocations can reduce reliance on a single market and capture growth opportunities in emerging economies. Consider gradually increasing exposure to regions like Asia or Latin America to enhance diversification and potentially boost returns.

Market capitalization Info

  • Large-cap
    31%
  • Mega-cap
    28%
  • Mid-cap
    25%
  • Small-cap
    11%
  • Micro-cap
    4%

The portfolio's market capitalization distribution is well-balanced, with significant allocations to big (31%), mega (28%), and medium (25%) companies. This spread provides a mix of stability and growth potential, aligning with common diversification strategies. Smaller allocations to small (11%) and micro (4%) caps offer additional growth opportunities, albeit with higher risk. Compared to benchmark norms, this distribution supports a diversified approach, capturing a range of market dynamics. Regularly reassessing market cap allocations can help maintain balance and align with evolving investment goals.

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 is a concept that helps optimize portfolios for the best possible risk-return ratio. Based on current assets, this portfolio could potentially be optimized by adjusting allocations between existing ETFs. While already aligned with growth objectives, fine-tuning allocations can enhance efficiency without altering the portfolio's overall strategy. Consider exploring optimization tools to identify potential improvements in risk-adjusted returns. Regularly revisiting the Efficient Frontier can ensure the portfolio remains aligned with evolving market conditions and personal investment goals.

Dividends Info

  • Avantis® International Small Cap Value ETF 4.10%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • WisdomTree International Hedged Quality Dividend Growth Fund 1.40%
  • iShares Morningstar Mid-Cap Growth ETF 0.50%
  • iShares Morningstar Mid-Cap Value ETF 1.60%
  • Vanguard Mega Cap Value Index Fund ETF Shares 2.20%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • SPDR® S&P 600 Small Cap Growth ETF 0.80%
  • Weighted yield (per year) 1.63%

The portfolio's overall dividend yield is 1.63%, with contributions from various ETFs. While not the primary focus, dividends provide a steady income stream, enhancing total returns. For growth-oriented investors, dividend yields can offer some downside protection during market volatility. Compared to similar portfolios, this yield is moderate, supporting a balanced approach between growth and income. If income generation is a priority, consider increasing exposure to high-dividend sectors or funds. Regularly reviewing dividend yields ensures alignment with evolving income needs and market conditions.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • WisdomTree International Hedged Quality Dividend Growth Fund 0.58%
  • iShares Morningstar Mid-Cap Growth ETF 0.06%
  • iShares Morningstar Mid-Cap Value ETF 0.06%
  • Vanguard Mega Cap Value Index Fund ETF Shares 0.07%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • SPDR® S&P 600 Small Cap Growth ETF 0.15%
  • Weighted costs total (per year) 0.14%

The portfolio's total expense ratio (TER) is 0.14%, indicating low costs relative to many actively managed funds. This cost efficiency supports better long-term performance by minimizing fees that can erode returns. Compared to industry averages, this TER is impressively low, aligning with best practices for cost-effective investing. Regularly reviewing expense ratios ensures they remain competitive, particularly as new investment opportunities arise. Maintaining a focus on cost management can significantly enhance net returns over time, contributing to overall portfolio success.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey