High-growth portfolio with major focus on technology and significant risk exposure

Report created on Aug 10, 2025

Risk profile Info

6/7
Aggressive
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is highly concentrated, with nearly 94% of its allocation in just two stocks, NVIDIA Corporation and the Schwab S&P 500 Index Fund, and the remainder in Alphabet Inc Class A. This concentration in technology and the S&P 500 index creates a unique blend of direct stock investment and broad market exposure. However, the heavy weighting towards a single sector and a few stocks significantly increases the portfolio's risk profile and reduces its diversification.

Growth Info

Historically, this portfolio has shown a remarkable Compound Annual Growth Rate (CAGR) of 40.98%. While impressive, the maximum drawdown of -64.24% highlights the portfolio's volatility and risk. The days contributing to 90% of returns being so few suggest that the portfolio's performance is highly reliant on specific, short-term market movements, which could be a concern for stability and predictability in returns.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, indicate a wide range of potential outcomes. With a median projection suggesting a 7,018.7% increase and a high percentile outcome showing even more substantial growth, the portfolio has the potential for significant returns. However, the reliance on historical data means these projections do not guarantee future performance and should be viewed with cautious optimism.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, with no allocation to bonds, real estate, or other asset classes. This lack of diversification across asset classes can lead to higher volatility and risk, particularly in market downturns. Including a variety of asset classes could help mitigate risk while still allowing for growth.

Sectors Info

  • Technology
    63%
  • Telecommunications
    11%
  • Financials
    6%
  • Consumer Discretionary
    5%
  • Health Care
    4%
  • Industrials
    4%
  • Consumer Staples
    3%
  • Energy
    1%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

The technology sector dominates the portfolio, comprising 63% of the allocation. While the tech sector has historically provided high returns, this concentration increases susceptibility to sector-specific risks. Broadening the sectoral allocation could reduce volatility and improve long-term stability.

Regions Info

  • North America
    100%

Geographic allocation is entirely focused on North America, missing out on potential growth opportunities in developed and emerging markets outside the U.S. This geographic concentration can limit diversification benefits and increase exposure to region-specific economic and political risks.

Market capitalization Info

  • Mega-cap
    75%
  • Large-cap
    16%
  • Mid-cap
    8%

With 75% of the portfolio in mega-cap stocks, there's a clear preference for large, established companies. While these companies often provide stability and consistent returns, the portfolio may miss out on the higher growth potential of smaller companies. Diversifying across different market capitalizations could enhance returns and reduce risk.

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 current composition, optimizing for the Efficient Frontier could involve diversifying across more asset classes and sectors while adjusting the weightings of the current holdings. This optimization aims to achieve the best possible risk-return ratio, though it's important to note that "efficiency" in this context does not necessarily equate to maximum diversification or lowest risk.

Dividends Info

  • Alphabet Inc Class A 0.40%
  • Schwab S&P 500 Index Fund 1.10%
  • Weighted yield (per year) 0.54%

The portfolio's overall dividend yield is relatively low at 0.54%, reflecting the growth-oriented nature of the investments. While reinvesting dividends from the S&P 500 Index Fund can contribute to compounding returns, the low yield indicates a minor role for income generation within this portfolio.

Ongoing product costs Info

  • Schwab S&P 500 Index Fund 0.02%
  • Weighted costs total (per year) 0.01%

The portfolio benefits from exceptionally low costs, with a Total Expense Ratio (TER) of just 0.01%. This efficient cost structure is commendable, as it allows a greater portion of returns to be reinvested, contributing positively to long-term growth.

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