A highly concentrated growth portfolio with a strong focus on the US market
Report created on Aug 24, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 99.01% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 0.99%
This portfolio is strikingly concentrated, with 99.01% invested in a US stock market ETF and a minimal 0.99% in international stocks. Such a configuration suggests a heavy reliance on the performance of the US market, underscoring a growth-oriented strategy but with low diversification. The allocation across only two ETFs simplifies management but exposes the portfolio to significant market-specific risks.
Growth
Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 14.70%, with a notable maximum drawdown of -34.98%. These figures reflect the volatility and the potential for high returns inherent in a growth-focused portfolio. The days contributing most to returns indicate concentrated periods of significant gains, a characteristic of equity-heavy strategies.
Projection
Monte Carlo simulations project a wide range of outcomes, with the 50th percentile suggesting a potential 317.5% increase. Such projections, while optimistic, are based on historical data and cannot guarantee future performance. They highlight the portfolio's growth potential but also underscore the importance of considering the inherent uncertainties in market movements.
Asset classes
- Stocks 99%
- Cash 1%
The asset class distribution, predominantly in stocks with a tiny cash reserve, aligns with the portfolio's growth profile. This allocation supports higher potential returns over the long term but comes with increased volatility. Investors should consider their comfort with short-term market fluctuations in pursuit of long-term gains.
Sectors
- Technology 32%
- Financials 14%
- Consumer Discretionary 11%
- Health Care 10%
- Telecommunications 9%
- Industrials 9%
- Consumer Staples 5%
- Energy 3%
- Real Estate 3%
- Utilities 2%
- Basic Materials 2%
The sector allocation is heavily weighted towards technology, financial services, and consumer cyclicals, which can offer substantial growth opportunities. However, this concentration also increases susceptibility to sector-specific downturns. Diversifying across a broader range of sectors could mitigate some of this risk.
Regions
- North America 99%
- Europe Developed 1%
Geographic allocation is almost entirely in North America, with a negligible portion in developed Europe. This heavy domestic focus limits exposure to global economic growth and diversification benefits offered by international markets. Expanding geographic exposure could reduce risk and tap into growth opportunities abroad.
Market capitalization
- Mega-cap 41%
- Large-cap 31%
- Mid-cap 19%
- Small-cap 6%
- Micro-cap 2%
The market capitalization breakdown shows a preference for mega and big-cap stocks, which tend to be more stable than smaller companies but may offer lower growth potential. Including medium, small, or micro-cap stocks could enhance growth prospects and diversification.
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, there may be opportunities to optimize the risk-return profile by adjusting the asset allocation. While the current focus is on growth, diversifying across more asset classes, sectors, and geographies could achieve a more efficient balance between risk and return.
Dividends
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.70%
- Weighted yield (per year) 1.21%
The dividend yields, while not the focus of this growth-oriented portfolio, contribute to total returns. The international ETF offers a higher yield, suggesting that increasing exposure to international stocks could not only diversify the portfolio but also potentially enhance income.
Ongoing product costs
- 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) 0.03%
The extremely low total expense ratios (TER) of the ETFs are a positive aspect, ensuring that costs do not significantly erode returns. This efficient cost structure is commendable and supports the portfolio's long-term growth potential.
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