Strategically diversified growth portfolio with a focus on technology and real estate sectors

Report created on Aug 4, 2025

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

Positions

This portfolio is structured to balance growth and risk, with a significant allocation towards stocks (77%) and a meaningful presence in both real estate (11%) and bonds (11%). The blend of ETFs from various sectors and regions, alongside a small cap value focus, suggests a strategy aimed at capturing broad market returns while seeking additional value through specific market segments. The diversification across asset classes and sectors is commendable, though the heavy tilt towards technology may introduce sector-specific risks.

Growth Info

Historically, this portfolio has shown a robust Compound Annual Growth Rate (CAGR) of 13.15%, with a maximum drawdown of -32.97%. Such performance indicates a strong growth trajectory, albeit with notable volatility. The days contributing most to returns highlight the impact of significant market movements on portfolio performance. Comparing this to benchmark indices would provide further insight into relative performance, especially during market downturns.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 374.5% over the simulation period. This forward-looking analysis, while based on historical data, underscores the potential for substantial growth. However, it's important to remember that such simulations are hypothetical and cannot account for unforeseen market shifts. This projection serves as a guide rather than a guarantee, emphasizing the importance of ongoing risk management.

Asset classes Info

  • Stocks
    77%
  • Real Estate
    11%
  • Bonds
    11%
  • Cash
    1%

The allocation across asset classes—predominantly stocks, with real estate and bonds providing balance—supports a growth-oriented strategy while mitigating volatility through diversification. This mix aligns with a growth profile but may benefit from periodic reassessment to ensure it continues to meet investment goals and risk tolerance, especially in changing market conditions.

Sectors Info

  • Technology
    23%
  • Financials
    13%
  • Real Estate
    12%
  • Consumer Discretionary
    9%
  • Industrials
    8%
  • Telecommunications
    6%
  • Health Care
    6%
  • Consumer Staples
    4%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    1%

With technology, financial services, and real estate as the top sectors, the portfolio is positioned to benefit from growth in these dynamic areas. However, the heavy weighting in technology, at 23%, could expose the portfolio to higher volatility, particularly in response to interest rate changes or sector-specific downturns. Balancing sector exposures could reduce risk without significantly dilating growth potential.

Regions Info

  • North America
    75%
  • Europe Developed
    6%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

The geographic allocation is heavily skewed towards North America (75%), with modest exposure to developed Europe and emerging Asian markets. This concentration enhances potential returns from the U.S. market but may limit global diversification benefits. Increasing exposure to underrepresented regions could offer improved risk-adjusted returns by capturing growth in diverse economies.

Market capitalization Info

  • Mega-cap
    30%
  • Large-cap
    22%
  • Mid-cap
    17%
  • Small-cap
    11%
  • Micro-cap
    8%

The portfolio's market capitalization spread, with a focus on mega to medium-sized companies, suggests a bias towards stability and established performance. However, the inclusion of small and micro-cap exposures via the Avantis® U.S. Small Cap Value ETF introduces potential for higher returns, albeit with increased risk. This balance supports growth objectives while incorporating elements of value investing.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard Information Technology Index Fund ETF Shares
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation observed among the Schwab U.S. Large-Cap Growth ETF, Vanguard Information Technology Index Fund ETF Shares, and Vanguard Total Stock Market Index Fund ETF Shares indicates overlapping exposures that may not provide the intended diversification benefits. Reducing redundancies within the portfolio could enhance efficiency by minimizing overlap without sacrificing the strategic growth focus.

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 the portfolio along the Efficient Frontier could further improve the risk-return profile. Focusing on reducing highly correlated assets will not only streamline the portfolio but also enhance diversification benefits. This process should consider the investor's risk tolerance and investment horizon, ensuring the portfolio remains aligned with their financial goals.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Vanguard Total Bond Market Index Fund ETF Shares 3.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard Real Estate Index Fund ETF Shares 3.90%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.95%

Dividend yields contribute to the portfolio's total return, with an average yield of 1.95%. The mix of higher-yielding assets like the Vanguard Real Estate Index Fund ETF Shares and lower-yielding growth-focused ETFs creates a balanced approach to income and capital appreciation. This dividend strategy complements the growth orientation while providing a steady income stream.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Real Estate Index Fund ETF Shares 0.12%
  • 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) 0.08%

The portfolio's overall expense ratio (TER) of 0.08% is impressively low, enhancing long-term return potential by minimizing cost drag. This efficiency is crucial for maximizing the compounding effect of returns over time. Continually monitoring and managing these costs will remain an important aspect of optimizing portfolio performance.

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