A growth-oriented portfolio with a strong focus on US equities and diversified international exposure
Report created on Jul 21, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 50.00% -
VB Vanguard Small-Cap Value Index Fund ETF Shares
VBR - US9229086114 30.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00%
This portfolio is heavily weighted towards US equities, with a 50% allocation in a Vanguard S&P 500 ETF, reflecting a strong belief in the performance of large-cap US stocks. The Vanguard Small-Cap Value Index Fund ETF Shares make up 30%, indicating a tilt towards value investing within the small-cap space. The remaining 20% is invested in the Vanguard Total International Stock Index Fund ETF Shares, offering diversified exposure to non-US markets. This composition suggests a growth-oriented strategy with a broad diversification across market capitalizations and geographies, albeit with a significant bias towards the US market.
Growth
Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.17%, with a maximum drawdown of -36.85%. This performance indicates a robust growth trajectory, albeit with periods of significant volatility. The days contributing to 90% of the returns number just 26, highlighting the impact of short-term gains on overall performance. This historical performance, while impressive, underscores the portfolio's exposure to market fluctuations and the importance of a long-term investment horizon.
Projection
Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of possible outcomes. The 50th percentile simulation suggests a potential 267.5% return, with a lower bound (5th percentile) at 13.4% and an upper bound (67th percentile) at 387.2%. While these projections are encouraging, it's crucial to remember that Monte Carlo simulations are based on past data, and future market conditions can vary significantly.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's asset allocation is almost entirely in stocks (99%), with a minimal cash holding (1%). This high equity allocation aligns with the portfolio's growth profile but also increases its risk profile. Diversifying across different asset classes, such as bonds or real estate, could offer a buffer against equity market volatility, potentially smoothing out returns over time.
Sectors
- Technology 22%
- Financials 18%
- Industrials 13%
- Consumer Discretionary 12%
- Health Care 9%
- Telecommunications 7%
- Consumer Staples 6%
- Real Estate 5%
- Basic Materials 4%
- Utilities 4%
- Energy 3%
Sector allocation is well-diversified, with technology (22%) and financial services (18%) being the most heavily weighted. This sector distribution reflects common trends in growth-oriented portfolios, banking on the high return potential of tech companies and the stability of financial services. However, the concentration in these sectors could expose the portfolio to sector-specific risks, such as regulatory changes or economic downturns affecting these industries disproportionately.
Regions
- North America 81%
- Europe Developed 8%
- Asia Emerging 3%
- Japan 3%
- Asia Developed 2%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, the portfolio is predominantly invested in North America (81%), with modest allocations to developed Europe (8%) and emerging Asia (3%). This heavy North American focus, particularly on the US, leverages the region's economic stability and growth prospects. However, increasing exposure to emerging markets and other developed regions could enhance diversification and potentially tap into higher growth rates abroad.
Market capitalization
- Mega-cap 32%
- Large-cap 24%
- Small-cap 20%
- Mid-cap 19%
- Micro-cap 4%
The market capitalization breakdown shows a balanced exposure across mega (32%), big (24%), medium (19%), and small (20%) caps, with a small portion in micro-caps (4%). This diversified cap-size allocation supports a balanced risk-return profile, leveraging the stability of mega and big caps and the growth potential of small and medium caps.
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.
The portfolio's current risk-return profile could be optimized further by exploring adjustments within the Efficient Frontier framework, which aims to maximize returns for a given level of risk. This might involve rebalancing between asset classes, sectors, or geographies to achieve a more efficient allocation. However, any optimization should consider the investor's risk tolerance, investment horizon, and financial goals.
Dividends
- Vanguard Small-Cap Value Index Fund ETF Shares 2.10%
- Vanguard S&P 500 ETF 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.79%
The portfolio's dividend yield averages 1.79%, with the highest yield from the Vanguard Total International Stock Index Fund ETF Shares at 2.80%. This yield contributes to the portfolio's total return, providing a steady income stream in addition to capital appreciation. For investors seeking growth, reinvesting these dividends could compound future returns.
Ongoing product costs
- Vanguard Small-Cap Value Index Fund ETF Shares 0.07%
- Vanguard S&P 500 ETF 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.05%
The portfolio benefits from low costs, with a total expense ratio (TER) averaging 0.05%. These low costs are advantageous for long-term growth, as they minimize the drag on returns. Maintaining focus on cost-efficient investments is crucial for enhancing net performance over time.
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