A growth-focused portfolio with strong tech and financial sectors exposure and international diversification

Report created on Aug 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 exhibits a robust composition, heavily weighted towards ETFs with significant allocations in the Vanguard S&P 500 ETF and Vanguard Total International Stock Index Fund ETF Shares, comprising nearly 69% of the portfolio. This is complemented by a strategic selection of individual stocks like Alphabet Inc, Berkshire Hathaway, and UnitedHealth Group, enhancing the portfolio's growth potential. Such a structure supports broad diversification across sectors and geographies, though it leans heavily towards the U.S. market.

Growth Info

Historically, the portfolio has demonstrated impressive performance with a Compound Annual Growth Rate (CAGR) of 17.21%. Its maximum drawdown of -32.75% indicates resilience during market downturns. The days contributing most to returns highlight the portfolio's ability to capitalize on short-term market movements effectively. This performance, when benchmarked against standard growth portfolios, suggests a well-managed risk-return balance, benefiting from both the stability of ETFs and the growth potential of selected stocks.

Projection Info

Monte Carlo simulations, projecting 1,000 different market scenarios, show a median increase of 774.9%, with a significant majority of simulations (993 out of 1,000) yielding positive returns. This indicates a high likelihood of future growth, although it's crucial to remember that these projections are based on past data and cannot guarantee future outcomes. The wide range of outcomes underscores the importance of maintaining a diversified portfolio to navigate market volatility effectively.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is predominantly in stocks (99%), with a minimal cash holding (1%). This allocation aligns with the portfolio's growth profile but carries higher volatility and risk compared to more balanced or conservative allocations. The absence of fixed income or alternative investments suggests a strong focus on capital appreciation, which is suitable for investors with a higher risk tolerance and a longer investment horizon.

Sectors Info

  • Technology
    21%
  • Financials
    21%
  • Telecommunications
    16%
  • Consumer Discretionary
    10%
  • Industrials
    9%
  • Health Care
    7%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation reveals a substantial emphasis on Technology and Financial Services, each constituting 21% of the portfolio. This concentration in high-growth sectors can offer significant returns but also exposes the portfolio to sector-specific risks, such as regulatory changes or economic cycles affecting these industries. The balanced exposure to other sectors like Communication Services and Consumer Cyclicals provides a counterbalance, though diversification within sectors could be improved to mitigate risks further.

Regions Info

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

Geographic exposure is predominantly in North America (77%), with meaningful allocations to developed Europe (10%) and emerging Asian markets (4%). This geographic distribution supports diversification, though the portfolio may benefit from increased exposure to emerging markets and other developed regions to capture global growth opportunities and reduce geographical concentration risks.

Market capitalization Info

  • Mega-cap
    55%
  • Large-cap
    28%
  • Mid-cap
    14%
  • Small-cap
    1%

The portfolio's market capitalization breakdown shows a preference for Mega (55%) and Big (28%) cap stocks, aligning with its growth and stability objectives. While this focus on larger companies is likely to reduce volatility, incorporating more Medium, Small, or even Micro cap stocks could enhance potential returns, albeit with increased risk.

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, the portfolio appears well-optimized for its current asset allocation, offering a favorable risk-return profile. However, continuous monitoring and potential rebalancing towards underrepresented asset classes or sectors could further optimize performance. It's important to note that optimization is based on historical data and future market conditions may warrant adjustments to maintain an optimal risk-return balance.

Dividends Info

  • Alphabet Inc Class C 0.40%
  • Invesco S&P 500® Momentum ETF 0.60%
  • UnitedHealth Group Incorporated 3.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.37%

The portfolio's dividend yield stands at 1.37%, contributed by both ETFs and individual stocks. This yield, while modest, complements the portfolio's growth strategy by providing a steady income stream. Given the portfolio's focus, the current dividend yield is appropriate, though investors seeking higher income might consider reallocating towards assets with higher yield potential.

Ongoing product costs Info

  • 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) 0.05%

Portfolio costs are impressively low, with a Total Expense Ratio (TER) of just 0.05%. This efficiency is crucial for long-term growth as it minimizes the drag on returns. The selection of low-cost ETFs and the strategic inclusion of individual stocks demonstrate a cost-conscious approach that should be maintained to maximize net returns over time.

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