A growth-focused portfolio with high US market exposure and technology sector prominence

Report created on Jul 20, 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 predominantly invested in ETFs, with a significant emphasis on the US stock market and the technology sector. The allocation is spread across five ETFs, focusing on total stock market, large-cap growth, world stock, US dividend equity, and mid-cap value. This composition suggests a growth-oriented strategy with a moderate level of diversification. However, the heavy weighting towards large-cap and technology stocks, combined with a significant US market focus, may expose the portfolio to sector-specific and geographic risks.

Growth Info

Historically, this portfolio has demonstrated strong performance with a Compound Annual Growth Rate (CAGR) of 13.69%. The maximum drawdown experienced was -34.53%, indicating a relatively high level of volatility and risk, consistent with its growth profile. It's important to note that while past performance is indicative, it does not guarantee future returns. The days contributing most to returns highlight the portfolio's potential for significant short-term gains but also underscore its susceptibility to market fluctuations.

Projection Info

Forward projections, based on Monte Carlo simulations, suggest a wide range of potential outcomes, with the median scenario indicating a 449.6% return. While these simulations provide a useful tool for understanding potential volatility and outcomes, they rely on historical data and cannot account for unforeseen market changes. Therefore, investors should view these projections as one of many tools in assessing potential portfolio performance.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no presence in other asset classes such as bonds or real estate. This singular focus enhances growth potential but also increases risk, particularly in market downturns. Diversifying across different asset classes can provide a buffer against stock market volatility, potentially leading to smoother long-term returns.

Sectors Info

  • Technology
    30%
  • Financials
    13%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Industrials
    9%
  • Telecommunications
    9%
  • Consumer Staples
    7%
  • Energy
    5%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

With 30% allocated to technology and significant investments in financial services and consumer cyclicals, the portfolio is positioned to benefit from growth in these sectors. However, this concentration also exposes it to sector-specific risks. Diversification across a broader range of sectors could mitigate this risk, potentially leading to more stable returns.

Regions Info

  • North America
    91%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Japan
    1%
  • Asia Developed
    1%

The portfolio's geographic allocation is heavily skewed towards North America (91%), with minimal exposure to developed Europe, Asia, and other regions. This concentration in the US market can limit global diversification benefits and expose the portfolio to regional economic and political risks. Expanding geographic exposure could enhance diversification and potentially tap into growth opportunities in emerging markets and other developed regions.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    29%
  • Mid-cap
    27%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown shows a preference for mega and large-cap stocks, which tend to be more stable and less volatile than smaller companies. However, this focus may limit opportunities for higher growth rates often found in mid and small-cap stocks. Considering a more balanced market cap allocation could introduce higher growth potential with manageable increases in risk.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Schwab U.S. Large-Cap Growth ETF
    Vanguard Total World Stock Index Fund ETF Shares
    High correlation

The high correlation observed among the Vanguard Total Stock Market Index Fund ETF Shares, Schwab U.S. Large-Cap Growth ETF, and Vanguard Total World Stock Index Fund ETF Shares indicates overlapping holdings that may not provide the intended diversification benefits. Reducing overlap by reallocating assets could enhance portfolio diversification and risk 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.

Optimizing the portfolio along the Efficient Frontier could improve the risk-return profile by adjusting asset allocation without necessarily increasing risk. Given the current high correlation among certain assets, there's room to enhance diversification. This process involves balancing the trade-off between risk and return to achieve the most efficient portfolio possible, based on historical data.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Mid-Cap Value Index Fund ETF Shares 2.20%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 1.48%

The portfolio's dividend yield of 1.48% contributes to its total return, with varying yields across the ETFs. While growth stocks typically offer lower dividends, the presence of dividend-yielding ETFs provides a source of income, which can be particularly valuable during market downturns or for income-focused investors.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Mid-Cap Value Index Fund ETF Shares 0.07%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.05%

The portfolio benefits from low total expense ratios (TER), averaging 0.05% across the ETFs. This cost efficiency supports better net returns over the long term. Investors should continue to monitor fees, as even small differences can have a significant impact on long-term investment outcomes.

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