Aggressive Growth Portfolio

Maximum growth potential for investors with long time horizons and high risk tolerance.

Allocation Breakdown

4 Assets
US Growth Stocks
Small-Cap US
Emerging Markets
International Developed

Target Allocation

Asset Class Weight Example Ticker
US Growth Stocks
40% VUG
Small-Cap US
20% VB
Emerging Markets
20% VWO
International Developed
20% VEA

Risk Level

High

Rebalance Frequency

Semi-annually

Advantages

  • Highest growth potential
  • Small-cap premium exposure
  • Emerging market upside
  • Well-diversified globally

Disadvantages

  • Very high volatility
  • Large drawdowns in bear markets
  • No bonds for stability
  • Requires strong emotional discipline

About This Portfolio

The Aggressive Growth Portfolio maximises long-term growth potential by focusing on growth stocks, small caps, and emerging markets. It accepts higher volatility and larger drawdowns in exchange for potentially higher long-term returns.

Historical Context

Academic research shows that small-cap and value factors have historically provided excess returns over large-cap growth stocks over multi-decade periods. Emerging markets offer growth tied to GDP expansion in developing economies.

Who It's For

Young investors with 20+ year time horizons, high risk tolerance, and no near-term need for the invested capital.

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