A growth-oriented portfolio with a focus on US markets and technology sector dominance

Report created on Jul 19, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards US equities, with a significant emphasis on the technology sector, as evidenced by the allocation towards Vanguard and Fidelity's total market index funds, which combined make up over 80% of the portfolio. The inclusion of specific sector funds like semiconductors, health sciences, and media & telecommunications indicates a targeted approach to growth within these industries. The small allocation to international stocks and real estate suggests a cautious approach to diversification outside the US market.

Growth Info

With a historical Compound Annual Growth Rate (CAGR) of 16.14% and a maximum drawdown of -35.23%, the portfolio has demonstrated robust growth potential amidst significant market volatility. The days contributing to 90% of returns highlight the impact of short-term, high-gain events on overall performance. Compared to benchmarks, this performance suggests a well-executed strategy in growth sectors but also underscores the risk associated with such concentrated positions.

Projection Info

Using Monte Carlo simulations, which project future outcomes based on historical data, the portfolio shows a wide range of potential future values, emphasizing the uncertainty inherent in investing. While a significant majority of simulations predict positive returns, the variance between the 5th and 67th percentiles underscores the high-risk, high-reward nature of this growth-focused strategy. It's crucial to remember that these projections are speculative and depend heavily on past market behaviors.

Asset classes Info

  • Stocks
    97%
  • Real Estate
    3%

The portfolio's asset allocation is 97% in stocks and 3% in real estate, with no cash or other assets. This allocation supports a growth-oriented strategy but carries higher volatility and risk. The lack of cash or equivalent holdings may limit flexibility in responding to market downturns or taking advantage of new investment opportunities. A more diversified asset class mix could provide a buffer against market volatility.

Sectors Info

  • Technology
    29%
  • Financials
    14%
  • Health Care
    11%
  • Telecommunications
    9%
  • Consumer Discretionary
    9%
  • Industrials
    9%
  • Consumer Staples
    5%
  • Real Estate
    5%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Consumer Discretionary
    1%

The sectoral composition is heavily skewed towards technology, healthcare, and financial services, which are sectors known for their growth potential. However, this concentration increases susceptibility to sector-specific risks. The underrepresentation of traditionally defensive sectors like utilities and consumer staples may lead to increased volatility in economic downturns. Balancing growth with defensive sectors could mitigate some risks while preserving upside potential.

Regions Info

  • North America
    95%
  • Europe Developed
    2%
  • Asia Emerging
    1%
  • Japan
    1%
  • Asia Developed
    1%

With 95% of assets allocated to North America, the portfolio's geographic exposure is highly concentrated. This focus has likely benefited from the strong performance of the US market but leaves the portfolio vulnerable to regional economic shifts. Expanding into more developed European and emerging Asian markets could offer both growth potential and a hedge against US market downturns.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    28%
  • Mid-cap
    19%
  • Small-cap
    9%
  • Micro-cap
    5%

The market capitalization breakdown shows a preference for mega and big-cap companies, which tend to be more stable and less volatile than their smaller counterparts. However, the inclusion of small and micro-cap investments, particularly through the Avantis® U.S. Small Cap Value ETF, introduces higher potential for growth at the expense of increased risk. This mix supports the portfolio's overall growth-oriented strategy while providing some level of stability.

Redundant positions Info

  • FIDELITY OTC PORTFOLIO FIDELITY OTC PORTFOLIO
    T. ROWE PRICE MEDIA & TELECOMMUNICATIONS FUND INC. T. ROWE PRICE MEDIA & TELECOMMUNICATIONS FUND INC.
    High correlation
  • Fidelity Total Market Index Fund
    Vanguard Total Stock Market Index Fund Admiral Shares
    High correlation

The high correlation between certain assets, especially within the technology sector and between the Fidelity and Vanguard total market funds, suggests redundancy that may not contribute to diversification. Reducing overlap by consolidating similar positions could streamline the portfolio without sacrificing its strategic focus, potentially reducing costs and simplifying management.

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.

Before optimizing for the Efficient Frontier, which aims to maximize returns for a given level of risk, the portfolio could benefit from addressing the high correlation among its holdings. Eliminating overlapping investments would not only streamline the portfolio but also potentially enhance its risk-return profile. This step is crucial for achieving a more efficient allocation.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • FIDELITY OTC PORTFOLIO FIDELITY OTC PORTFOLIO 12.90%
  • Fidelity Select Semiconductors Portfolio 7.40%
  • Fidelity Total Market Index Fund 1.00%
  • T. ROWE PRICE HEALTH SCIENCES FUND INC. T. ROWE PRICE HEALTH SCIENCES FUND INC. 13.40%
  • T. ROWE PRICE MEDIA & TELECOMMUNICATIONS FUND INC. T. ROWE PRICE MEDIA & TELECOMMUNICATIONS FUND INC. 6.80%
  • Vanguard Real Estate Index Fund ETF Shares 3.90%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.90%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.78%

The dividend yields across the portfolio vary significantly, with some specialty funds offering high yields. However, the overall yield is moderate, reflecting the growth focus over income generation. Investors should consider the role of dividends in their investment strategy; while lower yields are typical for growth-oriented portfolios, dividends can provide a steady income stream and contribute to total return.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • FIDELITY OTC PORTFOLIO FIDELITY OTC PORTFOLIO 0.73%
  • Fidelity Select Semiconductors Portfolio 0.62%
  • Fidelity Total Market Index Fund 0.02%
  • T. ROWE PRICE HEALTH SCIENCES FUND INC. T. ROWE PRICE HEALTH SCIENCES FUND INC. 0.80%
  • T. ROWE PRICE MEDIA & TELECOMMUNICATIONS FUND INC. T. ROWE PRICE MEDIA & TELECOMMUNICATIONS FUND INC. 0.77%
  • Vanguard Real Estate Index Fund ETF Shares 0.12%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.10%

The portfolio's total expense ratio (TER) is low, which is advantageous for long-term growth by minimizing the drag on performance. However, the costs vary widely among the funds, with specialty funds having higher fees. Investors should weigh the benefits of these targeted investments against their higher costs, as excessive fees can erode returns over time.

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