Growth-focused portfolio with strong emphasis on US stocks and technology sector

Report created on Oct 11, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily concentrated in two ETFs: Vanguard Growth Index Fund ETF Shares and Vanguard Total Stock Market Index Fund ETF Shares, making up nearly 55% and 45% of the portfolio, respectively. Such a composition indicates a strong focus on growth-oriented stocks within the US market. While this provides a streamlined approach to capturing growth, it also limits diversification across asset classes and geographical regions, as the entire portfolio is allocated to stocks, specifically within North America.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 16.75%, with a maximum drawdown of -33.14%. These figures suggest a relatively high return potential but also a significant risk of large drops in value. The days contributing most to returns are few, highlighting the portfolio's vulnerability to market volatility. Comparing these metrics against benchmarks for growth portfolios may help in assessing performance adequacy.

Projection Info

The Monte Carlo simulation, with 1,000 runs, projects a wide range of outcomes, from a 147.4% increase at the 5th percentile to a 1,077.4% increase at the 67th percentile, indicating a high degree of uncertainty but also substantial growth potential. The annualized return across all simulations stands at 18.24%, suggesting optimistic future performance. However, it's crucial to remember that such simulations use historical data, which may not accurately predict future outcomes.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no presence in other asset classes such as bonds or real estate. This singular focus on equities enhances growth potential but also increases risk, especially during market downturns. Diversifying across different asset classes can help mitigate this risk while still aiming for growth.

Sectors Info

  • Technology
    44%
  • Consumer Discretionary
    13%
  • Telecommunications
    12%
  • Financials
    10%
  • Health Care
    7%
  • Industrials
    6%
  • Consumer Staples
    3%
  • Real Estate
    2%
  • Energy
    2%
  • Basic Materials
    1%
  • Utilities
    1%

The sector allocation is heavily weighted towards technology (44%), followed by consumer cyclicals and communication services. This concentration in high-growth sectors aligns with the portfolio's growth objectives but also exposes it to sector-specific risks, such as regulatory changes or economic cycles affecting technology and consumer spending.

Regions Info

  • North America
    100%

Geographic exposure is entirely focused on North America, omitting potential opportunities and diversification benefits from developed European markets, Latin America, and both emerging and developed Asian markets. Expanding geographic exposure could reduce the portfolio's vulnerability to regional economic downturns and provide access to growth in global markets.

Market capitalization Info

  • Mega-cap
    55%
  • Large-cap
    27%
  • Mid-cap
    14%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio predominantly invests in mega (55%) and big (27%) cap stocks, with lesser exposure to medium, small, and micro-cap stocks. This composition favors stability and lower volatility associated with larger companies but may miss out on the higher growth potential of smaller companies.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Vanguard Growth Index Fund ETF Shares
    High correlation

The high correlation between the Vanguard Growth Index Fund ETF Shares and Vanguard Total Stock Market Index Fund ETF Shares indicates overlapping investments that do not contribute to diversification. Reducing overlap by reallocating assets could enhance portfolio efficiency by lowering risk 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.

Optimizing the portfolio for risk versus return could involve reducing the high correlation between its two main holdings. This process would likely entail diversifying into different asset classes or sectors, which could achieve a more efficient risk-return profile on the Efficient Frontier. This means aiming for the highest possible return for a given level of risk.

Dividends Info

  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Weighted yield (per year) 0.72%

The portfolio's dividend yield is relatively low, with a total yield of 0.72%. This is consistent with its growth focus, as growth stocks typically reinvest earnings rather than pay out dividends. Investors prioritizing income alongside growth might consider incorporating assets with higher dividend yields.

Ongoing product costs Info

  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.04%

The portfolio benefits from low costs, with a Total Expense Ratio (TER) of 0.04%. This efficiency supports better long-term performance by minimizing the drag on returns due to fees. Keeping costs low is a solid strategy, especially in growth-focused portfolios where compound growth is a priority.

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