A balanced growth-focused portfolio with a strong tilt towards tech and US markets

Report created on Aug 7, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is dominated by equities, specifically through ETFs and a significant position in Berkshire Hathaway Inc. This structure aligns with a balanced risk profile, aiming for growth through a broad exposure to the US market, as evidenced by the heavy weighting towards the Vanguard S&P 500 ETF and the Invesco NASDAQ 100 ETF. The inclusion of the Vanguard Total World Stock Index Fund ETF Shares attempts to provide global diversification, though the overall geographic exposure remains heavily US-centric. The portfolio's diversification is moderate, reflecting a strategic choice to concentrate on sectors and regions expected to drive growth.

Growth Info

Historically, this portfolio has demonstrated robust performance, with a Compound Annual Growth Rate (CAGR) of 15.31%. The maximum drawdown of -25.16% indicates resilience during market downturns, albeit with significant short-term volatility. The concentration in high-growth sectors like technology has likely contributed to these strong returns. However, it's crucial to remember that past performance is not indicative of future results. Investors should consider whether this level of risk and potential for drawdown aligns with their investment horizon and risk tolerance.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential returns for this portfolio. With 997 out of 1,000 simulations showing positive returns, the analysis indicates a high probability of future growth. However, the significant variance between the 5th and 67th percentiles underscores the risk of volatility. Investors should understand that while these projections are useful for planning, they are inherently uncertain and should be one of many tools used in decision-making.

Asset classes Info

  • Stocks
    100%

This portfolio is entirely composed of stocks, offering no exposure to other asset classes such as bonds or real estate. While this allocation supports the pursuit of growth, it also increases susceptibility to market fluctuations. Diversifying across different asset classes can reduce risk by spreading exposure beyond stocks, which can be particularly volatile. For investors with a balanced risk profile, introducing fixed-income securities or alternative investments could provide a buffer during stock market downturns.

Sectors Info

  • Technology
    31%
  • Financials
    22%
  • Consumer Discretionary
    10%
  • Telecommunications
    9%
  • Health Care
    8%
  • Industrials
    6%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    2%
  • Utilities
    1%
  • Real Estate
    1%

The sectoral allocation reveals a heavy emphasis on technology and financial services, constituting over half of the portfolio. This concentration enhances growth potential but also increases vulnerability to sector-specific risks. Diversifying more evenly across sectors could mitigate this risk, ensuring that the portfolio is not overly reliant on the performance of a single sector. Rebalancing to include a broader mix of sectors, such as healthcare and consumer goods, may provide more stability.

Regions Info

  • North America
    93%
  • Europe Developed
    3%
  • Asia Emerging
    1%
  • Japan
    1%
  • Asia Developed
    1%

With 93% of assets allocated to North America, the portfolio's geographic diversification is limited. This concentration in developed markets, particularly the US, has historically provided strong returns but also exposes the portfolio to regional economic and political risks. Broadening exposure to emerging markets and other developed regions could enhance diversification benefits and tap into growth opportunities outside the US.

Market capitalization Info

  • Mega-cap
    52%
  • Large-cap
    30%
  • Mid-cap
    15%
  • Small-cap
    2%

The portfolio's focus on mega and large-cap stocks aligns with its growth and stability objectives, given these companies' proven track records. However, the relatively small allocation to medium, small, and micro-cap stocks limits potential exposure to high-growth opportunities in smaller companies. Increasing the allocation to smaller caps could enhance growth prospects, albeit with added volatility.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Invesco NASDAQ 100 ETF
    High correlation
  • Vanguard S&P 500 ETF
    Vanguard Total World Stock Index Fund ETF Shares
    High correlation

The high correlation between certain ETFs, particularly those tracking the S&P 500 and NASDAQ, indicates redundancy within the portfolio. This overlap limits diversification benefits and concentrates risk. Reducing exposure to correlated assets and seeking out non-correlated investments can improve the portfolio's risk-adjusted returns by ensuring that not all assets move in the same direction during market shifts.

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.

Optimizing this portfolio involves addressing the high correlation between assets and the heavy concentration in certain sectors and geographies. By diversifying more broadly across asset classes, sectors, and regions, the portfolio can achieve a more favorable risk-return profile. The Efficient Frontier analysis suggests that there is room for improvement in balancing risk and return, particularly by reducing overlap and enhancing global exposure.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 1.18%

The portfolio's dividend yield contributes to total returns, particularly from the Schwab U.S. Dividend Equity ETF. While the overall yield is moderate, dividends offer a steady income stream and can provide a cushion during market volatility. For a balanced growth portfolio, maintaining a mix of high-growth and dividend-paying investments can offer a balanced approach to capital appreciation and income generation.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.06%

The portfolio benefits from relatively low costs, with a Total Expense Ratio (TER) averaging 0.06%. Low costs are crucial for long-term growth, as they directly enhance net returns. The selection of low-cost ETFs demonstrates a cost-conscious strategy, aligning with best practices for maximizing investment efficiency. Continually monitoring and minimizing investment costs remains a key consideration for maintaining portfolio performance.

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