Growth-focused portfolio with high exposure to US markets and significant sector concentration

Report created on Nov 15, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is heavily weighted towards ETFs and includes a significant stake in a mutual fund, focusing entirely on the US market with a strong emphasis on stocks (99%). This composition reflects a growth-oriented strategy but shows low diversity across asset classes and geographical regions. The substantial allocation to the Vanguard S&P 500 ETF, which mirrors the broad market, is balanced by more targeted investments in small-cap, momentum, and quality factor ETFs, aiming to capitalize on specific market inefficiencies or trends.

Growth Info

Historically, this portfolio has demonstrated robust performance with a Compound Annual Growth Rate (CAGR) of 15.36%, though it has experienced a significant drawdown of -36.71%. These figures suggest the portfolio's growth potential comes with considerable volatility, a common trait for growth-focused investments. The days contributing most to returns indicate that gains are concentrated in short, possibly unpredictable, periods, emphasizing the importance of long-term commitment to weather volatility.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median scenario suggesting a substantial increase in value. However, such projections, while useful for understanding potential volatility and reward, are based on historical data and cannot guarantee future returns. The high percentage of simulations with positive returns underscores the portfolio's growth potential but also highlights the inherent uncertainty in market movements.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's almost exclusive focus on stocks, with a minor allocation to cash, underscores its growth orientation but raises concerns about diversification. While stocks are known for their potential for high returns, they also come with higher volatility compared to other asset classes like bonds or real estate. A more balanced asset class allocation could mitigate risk without necessarily compromising long-term growth objectives.

Sectors Info

  • Technology
    28%
  • Financials
    19%
  • Industrials
    11%
  • Health Care
    8%
  • Consumer Discretionary
    8%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Real Estate
    3%
  • Consumer Discretionary
    3%
  • Utilities
    2%
  • Basic Materials
    2%

Sector allocation reveals a heavy tilt towards technology and financial services, followed by industrials and healthcare. This concentration in a few sectors can amplify sector-specific risks and volatility. While the technology sector has been a significant growth driver in recent years, diversifying into additional sectors could provide a buffer against sector-specific downturns and capitalize on growth opportunities elsewhere.

Regions Info

  • North America
    99%
  • Latin America
    1%

The portfolio's geographic allocation is almost entirely focused on North America, with minimal exposure to international markets. This concentration in the US market limits global diversification benefits and exposure to potential growth in emerging and developed markets outside the US. Expanding geographic exposure could reduce systemic risk related to the US economy and tap into growth dynamics in other regions.

Market capitalization Info

  • Large-cap
    28%
  • Mega-cap
    27%
  • Mid-cap
    18%
  • Small-cap
    18%
  • Micro-cap
    8%

The mix of market capitalizations, with allocations to big, mega, medium, small, and micro-cap stocks, suggests an attempt to balance the stability of large companies with the growth potential of smaller firms. However, the equal weighting across different market caps, especially in smaller and micro-cap stocks, increases the portfolio's risk profile, given these segments' higher volatility.

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.

Using the Efficient Frontier to optimize this portfolio suggests potential for higher returns at the same level of risk. While the current allocation has performed well, reallocating assets could achieve a more favorable risk-return profile. This optimization process, based solely on historical data, should be approached with caution, as it assumes past market behavior will predict future outcomes, which is not always the case.

Dividends Info

  • FIDELITY SMALL CAP VALUE FUND FIDELITY SMALL CAP VALUE FUND 16.10%
  • iShares MSCI USA Momentum Factor ETF 1.00%
  • Vanguard U.S. Quality Factor 1.20%
  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 4.10%

The dividend yield across the portfolio averages to 4.10%, with a notable outlier in the Fidelity Small Cap Value Fund. Dividends contribute to total returns, offering a buffer in volatile or declining markets. However, the focus on growth and capital appreciation means dividends play a secondary role in this portfolio's strategy. Balancing growth with income-generating assets could provide a more stable return stream.

Ongoing product costs Info

  • FIDELITY SMALL CAP VALUE FUND FIDELITY SMALL CAP VALUE FUND 0.97%
  • iShares MSCI USA Momentum Factor ETF 0.15%
  • Vanguard U.S. Quality Factor 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.26%

The portfolio's total expense ratio (TER) averages to 0.26%, which is relatively low, enhancing net returns over time. However, the mutual fund's higher expense ratio compared to the ETFs raises the overall cost. Periodically reviewing and potentially reallocating from higher-cost funds to more cost-efficient alternatives without compromising strategic objectives could improve long-term performance.

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