Growth-focused portfolio with strong technology and U.S. market orientation

Report created on May 6, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is well-structured, emphasizing growth through a significant allocation to equities, particularly in technology and U.S. markets. The mix of ETFs and funds targets broad diversification across sectors and geographies, yet it leans heavily towards North American assets. This orientation reflects a growth-centric approach but might limit global diversification benefits. The inclusion of specialized ETFs like ARK Innovation and Global X Robotics & AI suggests a focus on high-growth potential sectors.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.69%, with a notable max drawdown of -41.11%. These figures indicate a robust growth trajectory, albeit with significant volatility. The days contributing most to returns highlight the portfolio's susceptibility to short-term market movements. Comparing these results to benchmarks would provide further context, suggesting whether this performance aligns with or exceeds market averages for similar risk profiles.

Projection Info

Monte Carlo simulations project a wide range of outcomes, emphasizing the inherent uncertainty in forward-looking estimates. The 50th percentile outcome of a 266.7% return is promising, yet the 5th percentile at -31.2% underscores the risk of substantial losses. These projections, while helpful for understanding potential volatility and reward, should be viewed as one of many tools in assessing future performance possibilities, not guarantees.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

With 99% of the portfolio in stocks, the asset class allocation underscores a clear preference for equity investments. This concentration enhances growth potential but also increases exposure to market volatility. A minor allocation to cash provides some liquidity, but incorporating fixed-income assets could offer better balance, reducing overall portfolio volatility and providing income in fluctuating markets.

Sectors Info

  • Technology
    28%
  • Financials
    14%
  • Health Care
    13%
  • Industrials
    13%
  • Consumer Discretionary
    8%
  • Telecommunications
    8%
  • Consumer Staples
    4%
  • Energy
    3%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Utilities
    2%
  • Consumer Discretionary
    2%

The sector allocation reveals a strong emphasis on technology, healthcare, and industrials, which may drive growth but also expose the portfolio to sector-specific risks. The underrepresentation of sectors like utilities and real estate, typically considered more defensive, suggests a higher risk tolerance. Balancing sector exposure could mitigate risks associated with economic cycles affecting particular industries.

Regions Info

  • North America
    77%
  • Asia Emerging
    8%
  • Europe Developed
    5%
  • Japan
    4%
  • Asia Developed
    3%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic allocation heavily favors North America, particularly the U.S., which aligns with the portfolio's growth orientation but may increase exposure to regional economic and political risks. Expanding into more diverse international markets, especially in underrepresented areas like Europe Emerging and Australasia, could provide additional growth opportunities and risk mitigation through geographic diversification.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    26%
  • Mid-cap
    18%
  • Small-cap
    14%
  • Micro-cap
    4%

The market capitalization breakdown shows a balanced exposure across mega, big, and medium-sized companies, with a smaller allocation to small and micro-cap stocks. This distribution supports growth while managing volatility, as larger companies typically offer stability, and smaller companies present higher growth potential but with added risk. Further diversification into small and micro-cap segments could enhance growth prospects but should be approached cautiously.

Redundant positions Info

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

The high correlation among the Vanguard S&P 500 ETF, Fidelity Total Market Index Fund, and Vanguard Total World Stock Index Fund ETF Shares suggests redundancy, limiting the diversification benefits of holding these assets together. Reducing overlap by reallocating from highly correlated assets to those with lower correlations can enhance portfolio efficiency, potentially improving the risk-return profile.

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.

Optimization using the Efficient Frontier suggests a need to address the portfolio's asset correlation to improve its risk-return profile. By reallocating from overlapping assets to those offering genuine diversification benefits, the portfolio can move closer to the Efficient Frontier, achieving a more favorable balance between risk and return.

Dividends Info

  • Global X Robotics & Artificial Intelligence ETF 0.10%
  • Fidelity Total Market Index Fund 1.10%
  • Schwab Emerging Markets Equity ETF 2.80%
  • Vanguard S&P 500 ETF 1.30%
  • Vanguard Total World Stock Index Fund ETF Shares 1.90%
  • Weighted yield (per year) 1.17%

The portfolio's dividend yield contributes to total returns, with a composite yield of 1.17%. While not the primary focus of a growth-oriented portfolio, dividends offer a source of income and potential reinvestment opportunities. Balancing high-growth investments with dividend-yielding assets could provide a more comprehensive approach to growth, incorporating both capital appreciation and income.

Ongoing product costs Info

  • ARK Innovation ETF 0.75%
  • Global X Robotics & Artificial Intelligence ETF 0.68%
  • Schwab Emerging Markets Equity ETF 0.11%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.18%

The range of expense ratios from 0.03% to 0.75% reflects a mix of cost-efficient index ETFs and higher-cost specialized funds. Keeping costs low is crucial for enhancing long-term returns, as fees compound over time. Focusing on minimizing expenses without sacrificing strategic asset allocation can significantly impact net performance.

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