A growth tilted stock heavy portfolio with strong tech exposure and solid global diversification

Report created on Sep 17, 2024

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 almost entirely in stocks, anchored by a broad US large cap fund with meaningful tilts to semiconductors and small cap value. That mix lines up well with a growth profile and explains the higher risk score. Being so stock heavy matters because it drives both return potential and the size of short term swings you might feel. A structure like this suits someone focused on compounding over many years rather than short term stability. If more stability is ever desired, the main lever would be gradually adding a small slice of steadier assets instead of being 99% in stocks, while still keeping the core broad index exposure as the main engine.

Growth Info

Historically, this mix has delivered a very strong compound annual growth rate (CAGR) of about 18.8%, meaning a $10,000 starting amount would have grown much faster than a typical broad market benchmark. At the same time, the maximum drawdown of roughly -34% shows that the ride can be bumpy, especially in sharp market downturns. This combination of high growth and deep but not extreme drawdowns is consistent with a growth oriented stock portfolio. It’s important to remember that past returns are just a record of what happened in a specific environment and not a promise; markets change, and future returns could be much lower even with the same holdings.

Projection Info

The Monte Carlo analysis, which simulates many possible futures by remixing historical return patterns, shows a wide range of outcomes. In simple terms, it “replays history” thousands of different ways to see how the portfolio might behave. The median path ending above 1,000% and an average simulated annual return above 20% signal strong upside potential, but the 5th percentile around 93% shows that flat or slightly negative long term results are still possible. Monte Carlo is useful for framing best and worst cases, but it’s still based on the past, so unusual future events or regime shifts won’t be fully captured in those numbers.

Asset classes Info

  • Stocks
    99%

From an asset class lens, the portfolio is essentially all in equities, with virtually no bonds, cash, or alternative assets. That concentration is intentional for a growth profile and aligns with someone comfortable with market volatility to chase higher long term returns. The upside is simplicity and clear equity exposure; the downside is limited cushioning when stocks fall across the board. Many broad benchmarks mix stocks with some safer assets, so this portfolio is more aggressive than a typical balanced mix. If downside protection or smoother returns ever become a priority, gradually introducing a modest stake in defensive asset types could help reduce the depth of future drawdowns.

Sectors Info

  • Technology
    40%
  • Financials
    13%
  • Consumer Discretionary
    10%
  • Industrials
    9%
  • Telecommunications
    7%
  • Health Care
    7%
  • Consumer Staples
    4%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector exposure is well diversified but clearly tilted toward technology at around 40%, boosted by the dedicated semiconductor ETF. Financials, consumer cyclical, industrials, and communication services provide additional breadth, and every major sector has at least a small footprint, which is a good sign. A tech heavy mix often outperforms in innovation driven periods but can be hit harder when rates rise, regulation bites, or growth expectations reset. The balanced presence of defensive areas like consumer staples, healthcare, and utilities helps a bit but doesn’t fully offset tech risk. If sector swings ever feel too intense, dialing back the concentrated semiconductor slice is the most direct way to soften that tilt without dismantling the core holdings.

Regions Info

  • North America
    79%
  • Europe Developed
    9%
  • Japan
    4%
  • Asia Developed
    4%
  • Asia Emerging
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is strongly tilted to North America at about 79%, with solid developed international exposure and a light but present slice of emerging regions. This structure is quite similar to common global equity benchmarks, just somewhat more US centric, which has actually helped in the last decade. The upside is alignment with where many of the world’s largest, most profitable companies are based. The tradeoff is some dependence on one region’s economic and policy environment. The added international and small cap value ETFs meaningfully improve diversification. If a more even global balance is ever desired, adding modestly more to non US broad funds would be the cleanest adjustment.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    33%
  • Mid-cap
    17%
  • Small-cap
    6%
  • Micro-cap
    3%

Market cap exposure is nicely spread: heavy in mega and large caps, with meaningful mid cap and a non trivial slice of small and micro caps. This mirrors a “core plus tilt” approach where large caps provide stability and liquidity, while smaller companies add growth and potential factor premiums. Smaller stocks can be more volatile and move differently from giants, which can help or hurt in different cycles. This allocation is well balanced and aligns closely with global standards, just with a purposeful lean into small cap value. If volatility ever feels excessive, trimming the small and micro cap slice slightly while keeping the large cap core intact would be the most straightforward tweak.

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.

On a risk versus return basis, this portfolio looks like a growth optimized mix that would sit closer to the upper part of an Efficient Frontier built from these specific funds. The “Efficient Frontier” is just a curve showing the best return you could historically have gotten for each level of volatility by changing only the weights between your existing holdings. Efficiency here doesn’t mean safest or most diversified; it simply means the cleanest trade off between risk and reward using what’s already in the toolbox. Small tweaks, like slightly reducing the most volatile slice and modestly increasing broad exposure, might move the mix closer to that theoretical sweet spot without changing the overall growth character.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.30%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • VanEck Semiconductor ETF 0.30%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.36%

The overall dividend yield of roughly 1.36% is modest, which is normal for a growth leaning equity portfolio focused on capital appreciation. Some holdings, especially the international and international small cap value funds, offer higher yields and help lift income slightly. Dividends can be helpful as a “paycheck” for income seekers or a quiet reinvestment engine for long term compounding. But for a growth profile, lower current yield often just means companies are reinvesting more into their own businesses. If future income becomes a bigger goal, gradually increasing exposure to higher yielding equity styles or adding a dedicated income sleeve could boost cash flow without fully changing the growth mindset.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.11%

The total expense ratio around 0.11% is impressively low, especially given the presence of more specialized funds. Costs matter because they come out every year, regardless of markets, and compound in reverse over decades. Using broad, low cost core ETFs as the foundation is a big positive and strongly supports long term performance. The slightly higher fees on the small cap value and semiconductor funds are typical for more targeted strategies but remain reasonable. If you ever add or swap funds, keeping an eye on fees and preferring low cost options where they offer similar exposure is an easy win that stacks up significantly over a long investment horizon.

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