Growth-oriented portfolio with a strong emphasis on US equities and diversified international exposure

Report created on Sep 5, 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 heavily weighted towards US equities, primarily through the Vanguard S&P 500 ETF, which constitutes 55% of the portfolio. This is complemented by a 25% allocation in the Vanguard Total International Stock Index Fund ETF, offering broad international coverage. The inclusion of the Avantis® U.S. Small Cap Value ETF and Invesco S&P 500® Momentum ETF, each at 10%, introduces a mix of value and momentum strategies, respectively. This composition underscores a growth-oriented approach, with a bias towards large-cap stocks but includes a nod towards diversification across market caps and investment styles.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 15.79% and a maximum drawdown of -34.71%, the portfolio has demonstrated robust growth with significant volatility. The days contributing to 90% of returns being limited to 18 indicates that the portfolio's performance is highly concentrated in short bursts of market rallies. This performance, while impressive, should be evaluated in the context of its risk profile, which is on the higher side given its growth orientation.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential portfolio values. The 50th percentile outcome of a 626.3% increase is optimistic, yet the broad spread between the 5th and 67th percentiles indicates substantial uncertainty. It's important to remember that these projections are hypothetical and do not guarantee future performance. They serve as a tool for understanding potential risk and return dynamics.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is almost entirely in stocks (99%), with a negligible cash position (1%). This allocation aligns with its growth-focused risk profile but lacks exposure to other asset classes like bonds or real estate that could provide income or reduce volatility. Diversifying across more asset classes could enhance the portfolio's resilience during stock market downturns.

Sectors Info

  • Technology
    25%
  • Financials
    18%
  • Consumer Discretionary
    12%
  • Industrials
    11%
  • Telecommunications
    9%
  • Health Care
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation is concentrated in Technology, Financial Services, and Consumer Cyclicals, which are sectors typically associated with higher growth but also higher volatility. The underrepresentation of traditionally defensive sectors like Utilities and Consumer Defensive suggests a portfolio designed for capital appreciation over income or stability. This sectoral distribution aligns with the portfolio's overall growth strategy but could benefit from slight adjustments to mitigate sector-specific risks.

Regions Info

  • North America
    77%
  • Europe Developed
    10%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation heavily favors North America (77%), with moderate exposure to developed Europe (10%) and emerging markets in Asia (4%). This distribution reflects a strong home bias, which may limit potential gains from faster-growing economies elsewhere. Increasing exposure to emerging markets and other developed regions could offer better diversification and access to growth outside the US.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    30%
  • Mid-cap
    15%
  • Small-cap
    6%
  • Micro-cap
    5%

The market capitalization breakdown shows a strong preference for mega (42%) and big (30%) cap stocks, indicative of a risk-averse approach within the equity allocation. However, the inclusion of medium, small, and micro caps, although in smaller proportions, adds a layer of potential growth and diversification. Balancing market cap exposure can optimize the trade-off between risk and return, particularly in different market cycles.

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 Efficient Frontier, which aims to maximize returns for a given level of risk, the portfolio's current allocation suggests a focus on growth with a higher risk tolerance. Adjustments for optimization could involve rebalancing towards assets with lower correlation or increasing exposure to different asset classes or sectors to enhance risk-adjusted returns. However, it's crucial to align any adjustments with the investor's risk tolerance and investment goals.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.56%

The portfolio's overall dividend yield of 1.56% contributes to its total return but is not the primary focus. The higher yield from the Vanguard Total International Stock Index Fund ETF (2.70%) suggests a valuable income stream from international holdings. For investors seeking growth, reinvesting dividends can compound growth, while those needing income might appreciate the yield as a cash flow source.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.07%

The portfolio's total expense ratio (TER) of 0.07% is impressively low, which is beneficial for long-term performance as costs can significantly erode returns over time. This cost efficiency is a strong point, reflecting well-chosen, low-cost ETFs that allow for more of the investment's return to be retained by the investor.

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