A growth-oriented portfolio with a strong focus on US equities and minimal bond exposure

Report created on Nov 30, 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 heavily weighted towards equities, with a 95% allocation, emphasizing large-cap U.S. stocks via the Vanguard S&P 500 ETF and complemented by positions in U.S. small-cap value and quality factor ETFs. The inclusion of a modest 10% in international stocks and a minimal 5% in short-term corporate bonds provides a slight diversification outside of U.S. equities. However, the heavy reliance on the U.S. market and large-cap stocks makes this portfolio more susceptible to market volatility and sector-specific downturns. Diversifying further across asset classes and geographies could enhance its resilience.

Growth Info

Historical performance showcases a robust Compound Annual Growth Rate (CAGR) of 15.63%, though it's important to acknowledge the significant maximum drawdown of -35.08%. This suggests that while the portfolio has achieved impressive growth, it has also experienced substantial volatility, which could be unsettling for investors with a lower risk tolerance. The days contributing most to returns highlight the portfolio's susceptibility to short-term market movements, underscoring the importance of a long-term investment perspective to weather volatility.

Projection Info

Monte Carlo simulations, which estimate future performance by analyzing historical data, suggest a wide range of outcomes for this portfolio, with a median projected annualized return of 13.68%. While the majority of simulations predict positive returns, the variability underscores the inherent uncertainties in investing. Investors should consider these projections as one of many tools in decision-making, keeping in mind that past performance is not indicative of future results.

Asset classes Info

  • Stocks
    95%
  • Bonds
    5%

The asset allocation heavily favors stocks over bonds, aligning with a growth-focused strategy. This composition is suitable for investors with a higher risk tolerance and a longer time horizon, who can withstand market fluctuations in exchange for potentially higher returns. However, the minimal bond allocation offers limited protection against equity market downturns, suggesting a review of the balance between growth potential and risk management could be beneficial.

Sectors Info

  • Technology
    27%
  • Financials
    15%
  • Consumer Discretionary
    12%
  • Industrials
    9%
  • Telecommunications
    8%
  • Health Care
    7%
  • Energy
    6%
  • Consumer Staples
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sectoral allocation is led by technology, financial services, and consumer cyclicals, reflecting a bet on sectors that can offer substantial growth. However, this concentration also exposes the portfolio to sector-specific risks, such as regulatory changes or economic cycles affecting consumer spending. Diversifying more evenly across sectors, including defensive ones like healthcare or utilities, could provide a buffer during market downturns.

Regions Info

  • North America
    85%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%

The geographic allocation is heavily skewed towards North America, particularly the U.S., with minimal exposure to international markets. This concentration benefits from the robust performance of U.S. equities but limits potential gains from emerging markets and developed international markets. Increasing exposure to diverse geographies could mitigate risks associated with the U.S. market and tap into growth opportunities abroad.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    26%
  • Mid-cap
    14%
  • Micro-cap
    11%
  • Small-cap
    10%

The portfolio's market capitalization exposure leans towards mega- and big-cap companies, known for their stability and lower volatility compared to smaller companies. However, this focus may limit potential high-growth opportunities found in small- and micro-cap stocks, especially in innovative or emerging sectors. A more balanced allocation across different market caps could enhance growth prospects and diversification.

Redundant positions Info

  • Vanguard S&P 500 ETF
    iShares MSCI USA Quality Factor ETF
    High correlation

High correlation between the Vanguard S&P 500 ETF and the iShares MSCI USA Quality Factor ETF indicates overlapping holdings, reducing the diversification benefits of holding both. Identifying and minimizing such overlaps can enhance portfolio efficiency by reducing redundancy and potentially improving the risk-return profile.

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.

Given the high correlation among certain assets and the portfolio's heavy reliance on U.S. equities, there's room for optimization towards the Efficient Frontier. This would involve reducing overlaps and potentially reallocating towards underrepresented asset classes and geographies to improve the risk-return trade-off. The goal is to achieve a more efficient portfolio that maximizes returns for a given level of risk.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • iShares MSCI USA Quality Factor ETF 0.90%
  • Vanguard Short-Term Corporate Bond Index Fund ETF Shares 4.30%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.49%

The portfolio's dividend yield of 1.49% contributes to its total return, with the short-term corporate bond ETF providing a higher yield, which is typical for income-generating assets. While dividends are a welcome income stream, the primary focus of this portfolio appears to be capital appreciation. Investors might consider rebalancing towards higher dividend-yielding assets if income becomes a more significant objective.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • iShares MSCI USA Quality Factor ETF 0.15%
  • Vanguard Short-Term Corporate Bond Index Fund ETF Shares 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.09%

The portfolio's average expense ratio is remarkably low at 0.09%, which is beneficial for long-term growth as lower costs directly translate to higher net returns. This cost efficiency is an excellent foundation; maintaining focus on keeping costs low while seeking diversification can further enhance portfolio performance.

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