A tech-focused growth portfolio with high concentration and limited diversification

Report created on Oct 21, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily weighted towards technology, comprising 50% in the Invesco NASDAQ 100 ETF, 30% in the Technology Select Sector SPDR® Fund, and 20% in NVIDIA Corporation. The allocation shows a clear growth orientation but exhibits low diversity across sectors and asset classes. The concentration in tech and related sectors heightens susceptibility to sector-specific risks and volatility.

Growth Info

Historically, the portfolio has shown impressive growth with a Compound Annual Growth Rate (CAGR) of 28.12%. However, its maximum drawdown of -43.05% indicates significant volatility and risk during market downturns. The days contributing most to returns are relatively few, suggesting that the portfolio's performance is heavily reliant on specific, high-gain periods.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 5,609.3%, indicating potential for substantial growth. However, the significant spread between the 5th and 67th percentiles highlights the portfolio's high risk. This projection, while useful for understanding possible futures, is based on past data and cannot guarantee future results.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, with no allocation to bonds, cash, or alternative investments. This singular focus on equities, particularly within the technology sector, amplifies both potential returns and volatility. Diversifying across asset classes could mitigate risk without necessarily sacrificing growth potential.

Sectors Info

  • Technology
    77%
  • Telecommunications
    9%
  • Consumer Discretionary
    7%
  • Consumer Staples
    2%
  • Health Care
    2%
  • Industrials
    2%
  • Utilities
    1%
  • Basic Materials
    1%

Sector allocation heavily favors technology, with considerable investments also in communication services and consumer cyclicals. This concentration in high-growth areas can lead to significant returns during bull markets but may increase risk during sector-specific downturns. Expanding into less correlated sectors could enhance stability.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

Geographic exposure is predominantly in North America (99%), with minimal investment in developed European markets. This geographic concentration limits exposure to potential growth in emerging markets and diversification benefits that come with a more global portfolio.

Market capitalization Info

  • Mega-cap
    62%
  • Large-cap
    29%
  • Mid-cap
    9%

The portfolio's focus on mega (62%) and big (29%) cap stocks leans towards more established companies, which can offer stability within the high-volatility tech sector. However, the inclusion of medium cap stocks (9%) adds a layer of growth potential, albeit with increased risk.

Redundant positions Info

  • Invesco NASDAQ 100 ETF
    Technology Select Sector SPDR® Fund
    High correlation

The high correlation between the Invesco NASDAQ 100 ETF and the Technology Select Sector SPDR® Fund, coupled with the significant position in NVIDIA Corporation, suggests redundancy that does not contribute to diversification. Reducing overlap could lower risk without substantially impacting the portfolio's growth potential.

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.

Considering the portfolio's high concentration in technology and correlated assets, optimization could involve diversifying into other sectors or asset classes to improve the risk-return profile. The Efficient Frontier suggests that diversification, even within a growth-oriented strategy, can lead to better risk-adjusted returns.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Technology Select Sector SPDR® Fund 0.50%
  • Weighted yield (per year) 0.40%

The overall dividend yield of 0.40% reflects the growth-focused nature of the portfolio, where reinvestment and capital appreciation are prioritized over income. In growth-oriented strategies, dividends are often seen as secondary to the potential for price appreciation.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Technology Select Sector SPDR® Fund 0.09%
  • Weighted costs total (per year) 0.10%

The portfolio's total expense ratio (TER) of 0.10% is impressively low, which is beneficial for long-term growth as it minimizes the drag on returns. Keeping costs low is crucial in maximizing net returns, especially in growth-oriented strategies where compounding plays a significant role.

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