A growth-focused portfolio with a strong tilt towards US equities and technology sector
Report created on Jul 21, 2025Risk profile
5/7
Diversification profile
3/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 90.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 10.00%
The portfolio is heavily weighted towards the Vanguard S&P 500 ETF, comprising 90% of the total, with the remaining 10% allocated to the Vanguard Total International Stock Index Fund ETF Shares. This composition reflects a significant tilt towards US equities, given the S&P 500's focus on large-cap US companies. The diversification is moderate, with a complete focus on stocks and no allocation to bonds or alternative investments. This setup aligns with a growth-oriented strategy but may carry higher volatility due to the lack of asset class diversification.
Growth
Historically, the portfolio has delivered a Compound Annual Growth Rate (CAGR) of 13.90%, with a maximum drawdown of -33.95%. These figures suggest a strong growth trajectory, albeit with significant short-term volatility, as indicated by the maximum drawdown. The days contributing to 90% of returns being concentrated in just 30 days highlight the portfolio's susceptibility to short-term market movements, underscoring the importance of maintaining a long-term perspective.
Projection
Monte Carlo simulations, a method used to forecast potential outcomes by running numerous simulations based on historical data, suggest a wide range of future performance scenarios for this portfolio. The 50th percentile outcome indicates a potential 303% return, with a 12.00% annualized return across all simulations. However, it's important to remember that these projections are based on past data and cannot guarantee future results. They serve as a tool for understanding potential volatility and outcomes.
Asset classes
- Stocks 100%
The portfolio's assets are exclusively in stocks, with no diversification into bonds, cash, or other asset classes. This allocation supports a growth-focused investment strategy but increases exposure to market volatility. Diversifying across different asset classes can help mitigate risk, especially during downturns in the stock market, by providing more stable returns from assets that may not move in tandem with equity markets.
Sectors
- Technology 31%
- Financials 15%
- Consumer Discretionary 11%
- Health Care 9%
- Telecommunications 9%
- Industrials 9%
- Consumer Staples 6%
- Energy 3%
- Utilities 3%
- Real Estate 2%
- Basic Materials 2%
Sector analysis reveals a significant concentration in technology (31%), followed by financial services (15%) and consumer cyclicals (11%). This sectoral allocation suggests a bias towards industries that can offer high growth but may also be more volatile and sensitive to market changes. While the tech sector can provide substantial returns, its dominance in the portfolio increases risk, particularly during market corrections or shifts away from tech stocks.
Regions
- North America 90%
- Europe Developed 4%
- Asia Emerging 2%
- Japan 2%
- Asia Developed 1%
Geographically, the portfolio is overwhelmingly concentrated in North America (90%), with minimal exposure to international markets. This concentration enhances exposure to the US economy's performance but limits potential gains from global diversification. Expanding into more diverse international holdings could provide a buffer against US market downturns and tap into growth opportunities in emerging and developed markets outside the US.
Market capitalization
- Mega-cap 46%
- Large-cap 34%
- Mid-cap 18%
- Small-cap 1%
The market capitalization breakdown shows a preference for mega (46%) and big (34%) cap stocks, with a smaller allocation to medium (18%) and negligible exposure to small (1%) and micro (0%) cap stocks. This allocation favors stability and lower volatility associated with larger companies but may miss out on the higher growth potential of smaller firms. Including more small and mid-cap stocks could enhance growth prospects and diversification.
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.
Considering the portfolio's current allocation and risk-return profile, there's an opportunity for optimization towards the Efficient Frontier, a concept representing the ideal balance between risk and return. Adjusting the asset allocation to include a broader range of asset classes, sectors, and geographic exposure could potentially offer a more favorable risk-return trade-off. This optimization doesn't necessarily mean achieving higher returns but rather improving the portfolio's overall efficiency by maximizing returns for a given level of risk.
Dividends
- Vanguard S&P 500 ETF 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.36%
The dividend yields of 1.20% for the Vanguard S&P 500 ETF and 2.80% for the Vanguard Total International Stock Index Fund ETF Shares contribute to a total portfolio yield of 1.36%. While dividends are not the primary focus of this growth-oriented portfolio, they provide a steady income stream that can enhance total returns, especially in volatile or down markets. Reinvesting these dividends can also compound growth over time.
Ongoing product costs
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.03%
The portfolio benefits from low costs, with Total Expense Ratios (TER) of 0.03% for the Vanguard S&P 500 ETF and 0.05% for the Vanguard Total International Stock Index Fund ETF Shares. Low costs are crucial for long-term investment success as they directly enhance net returns. This portfolio's low-cost structure is commendable and supports better performance over time.
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