A focused growth portfolio with heavy reliance on US stocks and low international diversification

Report created on Aug 22, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily weighted towards US equities, with a 70% allocation in the Vanguard S&P 500 ETF and a 30% allocation in the Vanguard Total World Stock Index Fund ETF Shares. This composition suggests a strong focus on growth through exposure to large-cap companies predominantly in the US market. The portfolio's diversification is limited, as indicated by its low diversity score, which may expose it to higher volatility and country-specific risks.

Growth Info

The portfolio has shown a commendable Compound Annual Growth Rate (CAGR) of 14.75%, with a maximum drawdown of -34%. The days contributing to 90% of the returns are notably few, suggesting that the portfolio's performance is significantly impacted by short periods of high returns. This volatility underscores the importance of understanding the timing and risks associated with market movements.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the 50th percentile suggesting a potential increase of 558.9% in portfolio value. While these projections are based on historical data, it's crucial to remember that past performance is not indicative of future results. The high correlation between the portfolio's two assets suggests limited diversification benefits, which could impact the reliability of these projections during market downturns.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is nearly entirely in stocks (99%), with a minimal cash holding (1%). This allocation underscores a growth-oriented strategy but highlights a significant exposure to market volatility. The absence of fixed-income or alternative investments limits the portfolio's ability to hedge against stock market downturns.

Sectors Info

  • Technology
    32%
  • Financials
    15%
  • Consumer Discretionary
    11%
  • Telecommunications
    9%
  • Health Care
    9%
  • Industrials
    9%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

Sector allocation is heavily skewed towards technology (32%), financial services (15%), and consumer cyclicals (11%), reflecting a typical growth-focused investment strategy. However, this concentration increases susceptibility to sector-specific risks, particularly in technology, which can be volatile.

Regions Info

  • North America
    70%

Geographic allocation is predominantly in North America (70%), with no direct exposure to developed Europe or Asia. This lack of international diversification can limit the portfolio's growth potential in global bull markets and increase vulnerability to US market downturns.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    34%
  • Mid-cap
    18%
  • Small-cap
    2%

The portfolio's market capitalization breakdown shows a preference for mega (45%) and big (34%) cap stocks, which typically offer stability and steady growth. However, the limited exposure to small and micro-cap stocks may reduce opportunities for higher returns that these more volatile assets can offer.

Redundant positions Info

  • Vanguard Total World Stock Index Fund ETF Shares
    Vanguard S&P 500 ETF
    High correlation

The high correlation between the Vanguard S&P 500 ETF and the Vanguard Total World Stock Index Fund ETF Shares indicates overlapping exposures, reducing the effectiveness of diversification within the portfolio. This correlation suggests that the portfolio may not be optimized for risk-adjusted returns, as both assets tend to move in tandem.

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.

Optimizing the portfolio for risk vs. return could involve diversifying beyond highly correlated assets to include investments with lower correlations. This diversification can enhance the portfolio's resilience against market fluctuations and improve the overall risk-return profile.

Dividends Info

  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 1.35%

The dividend yield of the portfolio averages 1.35%, which contributes to total returns. While not the primary focus of a growth-oriented strategy, dividends offer a passive income stream and can provide a buffer during market volatility.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.04%

With a total expense ratio (TER) of 0.04%, the portfolio benefits from low costs, which can significantly enhance long-term returns. The low costs are a strength, allowing more of the investment returns to compound over time.

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