Growth-focused portfolio with heavy tech exposure and strong international diversification

Report created on Aug 10, 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

The portfolio primarily consists of two funds: 80% in the Vanguard Growth Index Fund Admiral Shares and 20% in the Vanguard Total International Stock Index Fund Admiral Shares. This structure demonstrates a clear growth orientation, leveraging the potential of the stock market while maintaining a broad diversification across geographies. The heavy allocation towards the Growth Index Fund suggests a strategy that leans towards sectors typically associated with higher growth, such as technology, which dominates the sector allocation.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 15.71%, with significant volatility as evidenced by a maximum drawdown of -34.78%. The days contributing to 90% of the returns being concentrated in just 32.0 days highlights the portfolio's reliance on short periods of high returns, which is characteristic of growth-focused investments. This performance, while impressive, underscores the portfolio's risk level and the importance of a long-term perspective to weather potential downturns.

Projection Info

Monte Carlo simulations project a wide range of potential outcomes, with a median increase of 375.1% in portfolio value, which illustrates the portfolio's growth potential. However, the broad spread between the 5th and 67th percentiles (42.6% to 547.2%) underscores the inherent uncertainties in forecasting and the significant risks involved. These projections, based on historical data, should be viewed as one of many tools in decision-making, acknowledging that past performance is not indicative of future results.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely invested in stocks (99%), with a minimal cash holding (1%). This asset class distribution is typical for growth-oriented investors seeking higher returns, albeit with increased volatility. The negligible cash position minimizes drag on performance but also limits liquidity and flexibility to capitalize on market dips.

Sectors Info

  • Technology
    43%
  • Consumer Discretionary
    14%
  • Telecommunications
    12%
  • Financials
    10%
  • Industrials
    7%
  • Health Care
    6%
  • Consumer Staples
    3%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Energy
    1%
  • Utilities
    1%

With a dominant 43% allocation to technology, followed by consumer cyclical and communication services, the portfolio is positioned to benefit from sectors often associated with rapid growth. However, this concentration increases susceptibility to sector-specific risks, particularly in technology, which can be volatile. Diversifying across more sectors could mitigate some of this volatility without significantly compromising growth potential.

Regions Info

  • North America
    82%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

The portfolio's geographic allocation is heavily weighted towards North America (82%), with a moderate exposure to international markets (18%). This distribution provides a solid foundation in the stable, yet growth-oriented North American market, complemented by diversification benefits and growth opportunities from developed and emerging markets abroad.

Market capitalization Info

  • Mega-cap
    61%
  • Large-cap
    25%
  • Mid-cap
    13%
  • Small-cap
    1%

The focus on mega (61%) and big (25%) cap stocks underscores the portfolio's preference for established, large-scale companies, which typically offer stability and steady growth. The minimal exposure to small and micro-cap stocks limits potential high-growth opportunities from these segments but aligns with the portfolio's growth-with-stability strategy.

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.

The current allocation appears to be positioned near the Efficient Frontier, suggesting an optimal risk-return balance based on historical data. However, it's important to remember that the Efficient Frontier is a theoretical concept that assumes past performance can predict future outcomes, a limitation in its applicability. Regular reviews and adjustments are essential to maintain this balance as market conditions evolve.

Dividends Info

  • VANGUARD GROWTH INDEX FUND ADMIRAL SHARES 0.30%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 2.10%
  • Weighted yield (per year) 0.66%

The portfolio's overall dividend yield is relatively low at 0.66%, reflecting its growth focus over income generation. The significant difference in yields between the two funds indicates a trade-off between growth potential and income, typical of growth-oriented strategies. Investors prioritizing long-term capital appreciation over immediate income may find this trade-off acceptable.

Ongoing product costs Info

  • VANGUARD GROWTH INDEX FUND ADMIRAL SHARES 0.05%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND ADMIRAL SHARES 0.09%
  • Weighted costs total (per year) 0.06%

With a total expense ratio (TER) of 0.06%, the portfolio benefits from low costs, maximizing the potential for net returns. Vanguard's reputation for low-cost funds is evident here, supporting the portfolio's long-term growth strategy by minimizing the drag on performance that higher costs can cause.

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