A growth-oriented portfolio with a strong emphasis on technology and North American stocks

Report created on Jul 21, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards ETFs that track major indices, with a 35% allocation in the Vanguard Total Stock Market Index Fund ETF Shares, 20% in Vanguard Mid-Cap Index Fund ETF Shares, and smaller but significant allocations in international, S&P 500, and tech-focused ETFs. This structure suggests a growth-oriented strategy with a broad diversification across market capitalizations and regions, albeit with a heavy bias towards the US market. The diversification across 11 sectors, with technology leading at 27%, indicates a tilt towards sectors with high growth potential.

Growth Info

The portfolio has shown a Compound Annual Growth Rate (CAGR) of 12.95% with a maximum drawdown of -34.43%, which is notable for growth-focused investors seeking substantial returns albeit with considerable volatility. The days contributing to 90% of returns being concentrated in just 28 days highlights the impact of significant market movements on portfolio performance. This pattern underscores the importance of staying invested through market cycles to capture pivotal growth spurts.

Projection Info

Utilizing Monte Carlo simulations, which project future performance based on historical data, this portfolio shows a wide range of outcomes with a median increase of 474.7%. While simulations provide a spectrum of potential futures, they are inherently limited by past market behavior and cannot predict unforeseen market shifts. This tool is valuable for understanding potential volatility and assessing risk tolerance but should not be the sole basis for investment decisions.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

With 99% of the portfolio in stocks, the asset class allocation underscores a high-growth, high-risk strategy. This concentration in equities is typical for growth-oriented portfolios but comes with increased market risk. The minimal cash holding provides limited liquidity and buffering against market downturns. Diversification across different asset classes, such as bonds or real estate, could offer a more balanced risk-return profile.

Sectors Info

  • Technology
    27%
  • Financials
    14%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Utilities
    4%
  • Real Estate
    3%
  • Basic Materials
    3%

The sector allocation reveals a pronounced emphasis on technology, financial services, and industrials, aligning with a growth investment strategy. However, this concentration increases susceptibility to sector-specific risks. For instance, the technology sector's performance can be volatile, influenced by interest rate changes and economic cycles. Diversifying more evenly across sectors could mitigate risk while still allowing for significant growth opportunities.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

The geographic allocation is heavily skewed towards North America, comprising 81% of the portfolio, with modest exposure to developed Europe and emerging Asian markets. This concentration benefits from the robust performance of the US market but limits global diversification. Expanding into underrepresented regions could reduce geopolitical and regional economic risks, potentially smoothing overall portfolio volatility.

Market capitalization Info

  • Mega-cap
    36%
  • Mid-cap
    32%
  • Large-cap
    27%
  • Small-cap
    3%
  • Micro-cap
    1%

The market capitalization breakdown shows a balanced exposure across mega, medium, and big cap stocks, with limited positions in small and micro caps. This distribution suggests a focus on established companies with the potential for stable growth but may overlook the higher growth potential of smaller companies. Incorporating more small and micro-cap stocks could enhance growth prospects at the cost of higher volatility.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Vanguard Mid-Cap Index Fund ETF Shares
    SPDR S&P 500 ETF Trust
    High correlation

The high correlation observed among the Vanguard Total Stock Market, Vanguard Mid-Cap Index, and SPDR S&P 500 ETF Trust indicates redundancy within the portfolio, which could dilute diversification benefits. This overlap suggests that the portfolio might not be as diversified as intended, as these assets tend to move in tandem during market fluctuations. Reducing overlap by reallocating assets could enhance diversification and potentially improve the risk-adjusted return.

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 presence of highly correlated assets suggests an opportunity to optimize the portfolio by reducing overlap. This adjustment could improve the portfolio's diversification without necessarily sacrificing growth potential. Employing the Efficient Frontier concept could help in identifying an optimal mix of assets that maximizes returns for a given level of risk. However, this optimization should consider the investor's risk tolerance and investment goals.

Dividends Info

  • Invesco QQQ Trust 0.40%
  • SPDR S&P 500 ETF Trust 0.90%
  • Vanguard Mid-Cap Index Fund ETF Shares 1.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.46%

The dividend yields across the ETFs contribute to the portfolio's total yield of 1.46%, providing a steady income stream in addition to potential capital gains. The higher yield from the Vanguard Total International Stock Index Fund ETF Shares highlights the income-generating potential of international equities. Balancing growth and income-focused investments could offer a more holistic approach to achieving both capital appreciation and income.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • SPDR S&P 500 ETF Trust 0.10%
  • Vanguard Mid-Cap Index Fund ETF Shares 0.04%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.06%

The portfolio's total expense ratio (TER) of 0.06% is impressively low, maximizing the return potential by minimizing costs. This cost efficiency is crucial for long-term growth, as even small differences in fees can significantly impact net returns over time. The emphasis on low-cost ETFs is a prudent strategy, aligning with best practices for cost-conscious investing.

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