Growth-oriented portfolio with a strong tech tilt and moderate diversification

Report created on Sep 11, 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 equities, with 80% in broad market U.S. equity ETFs and a significant 10% allocation to a tech-specific ETF, reflecting a clear growth orientation. The remaining 10% in international stocks provides some geographical diversification, though it's relatively minimal. This composition suggests a strategic focus on capital appreciation, leveraging the growth potential of the U.S. stock market and the tech sector, while the international component attempts to introduce global exposure.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 17.18% and a maximum drawdown of -32.81%, the portfolio has demonstrated strong growth with significant volatility. The days contributing to 90% of returns being concentrated in 38.0 days highlight the portfolio's reliance on short-term gains, which is typical for growth-focused investments. When compared to a diversified benchmark, these figures suggest higher-than-average returns but with increased risk, reflecting the growth orientation and concentration in high-volatility sectors like technology.

Projection Info

The Monte Carlo simulation, projecting a wide range of potential outcomes, indicates a median potential growth of 885%, with a positive return in 995 out of 1,000 simulations. This optimistic projection underscores the portfolio's strong growth potential but also underscores the importance of understanding the inherent uncertainties in such simulations. These projections, while helpful, should be viewed as one of many tools in assessing future performance, not guarantees.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset class allocation is almost entirely in stocks (99%), with a nominal cash holding. This allocation is consistent with its growth profile but comes with higher volatility and risk compared to more diversified portfolios that include bonds or alternative investments. The lack of diversification across asset classes may increase the portfolio's sensitivity to market swings, particularly those affecting the stock market.

Sectors Info

  • Technology
    41%
  • Financials
    12%
  • Telecommunications
    10%
  • Consumer Discretionary
    10%
  • Industrials
    8%
  • Health Care
    7%
  • Consumer Staples
    4%
  • Energy
    2%
  • Real Estate
    2%
  • Utilities
    2%
  • Basic Materials
    2%

Sector allocation shows a heavy tilt towards technology (41%), which aligns with the growth strategy but introduces sector-specific risks, such as increased volatility from tech stock fluctuations. Other significant allocations include financial services and consumer cyclicals, contributing to the portfolio's growth potential but also to its risk profile. Diversifying across additional sectors could help mitigate some of this risk.

Regions Info

  • North America
    89%
  • Europe Developed
    5%
  • Asia Developed
    2%
  • Asia Emerging
    2%
  • Japan
    2%

Geographically, the portfolio is heavily weighted towards North America (89%), with minimal exposure to other regions. This concentration in developed markets, particularly the U.S., may limit global diversification benefits and expose the portfolio to regional economic and political risks. Increasing exposure to emerging markets and other developed regions could enhance diversification and potentially tap into higher growth rates abroad.

Market capitalization Info

  • Mega-cap
    51%
  • Large-cap
    30%
  • Mid-cap
    14%
  • Small-cap
    3%
  • Micro-cap
    1%

The focus on mega (51%) and big (30%) cap stocks underscores the portfolio's preference for established, large-scale companies, which typically offer more stability than their smaller counterparts but may have lower growth potential. Medium, small, and micro cap stocks, although more volatile, could provide higher growth opportunities and further diversification.

Redundant positions Info

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

The high correlation between the Vanguard S&P 500 Growth Index Fund ETF Shares and the Vanguard Total Stock Market Index Fund ETF Shares suggests redundancy, limiting the diversification benefits of holding both. Reducing overlap could enhance portfolio efficiency by diversifying into assets with lower correlations, potentially reducing volatility without sacrificing expected returns.

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.

Given the portfolio's current composition, optimization efforts should first address the high correlation between certain holdings to improve diversification without necessarily compromising growth potential. Utilizing the Efficient Frontier concept could help in identifying an asset mix that offers the best possible risk-return ratio, though it's important to remember that this approach is based on historical data and assumptions about future performance.

Dividends Info

  • VanEck Semiconductor ETF 0.40%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 0.99%

The portfolio's dividend yield strategy, with an overall yield of 0.99%, contributes to its total return, complementing capital gains with income. However, the focus on growth stocks, which typically reinvest profits rather than pay dividends, means the portfolio's income component is relatively modest. Investors seeking higher income might consider allocating a portion to higher-yielding assets.

Ongoing product costs Info

  • VanEck Semiconductor ETF 0.35%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.09%

The portfolio's overall expense ratio is low at 0.09%, which is favorable for long-term growth as lower costs directly translate to higher net returns. This cost efficiency is a strong aspect of the portfolio, particularly given the potential for compounding returns over time. Keeping costs low while maintaining a focus on growth-oriented investments is a sound strategy.

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