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Growth-focused portfolio with heavy tech and healthcare exposure and low diversification

Report created on Aug 19, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is highly concentrated in a few sectors and large-cap stocks, with a significant portion allocated to ETFs that track major indices like the S&P 500 and NASDAQ 100. This concentration in technology and healthcare, alongside a notable presence of financial services and consumer sectors, suggests a strategy aimed at capitalizing on growth trends. However, the low diversification score indicates a higher risk level, as the portfolio's performance is closely tied to the fortunes of a limited number of sectors and companies.

Growth Info

Historically, this portfolio has shown impressive growth, with a Compound Annual Growth Rate (CAGR) of 19.51%. This performance is particularly noteworthy during periods of strong market returns in the technology and healthcare sectors. However, the maximum drawdown of -23.61% highlights the potential volatility and risk associated with this concentrated approach. The days contributing most to returns emphasize the portfolio's sensitivity to market highs and lows, underlining the importance of timing in this investment strategy.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, we see a wide range of potential outcomes. The median projection suggests substantial growth, but the range between the 5th and 67th percentiles indicates significant uncertainty. It's important to remember that these simulations are based on past trends, which may not always predict future movements accurately. The high annualized return projection underscores the portfolio's growth potential but also reflects its risk level.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, with no allocation to bonds, cash, or alternative investments. This concentration in a single asset class amplifies both the potential for high returns and the risk of significant losses. Diversifying across different asset classes can help mitigate risk and reduce volatility without necessarily compromising on long-term growth potential.

Sectors Info

  • Technology
    33%
  • Health Care
    20%
  • Financials
    11%
  • Consumer Discretionary
    10%
  • Consumer Staples
    9%
  • Telecommunications
    7%
  • Industrials
    5%
  • Energy
    2%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

The heavy allocation to technology and healthcare sectors reflects a focus on industries expected to experience above-average growth. However, this sector concentration increases vulnerability to industry-specific downturns. Expanding into other sectors, even those with more moderate growth expectations, could provide a buffer against sector-specific risks and contribute to more stable overall performance.

Regions Info

  • North America
    99%

With 99% of assets allocated to North America, the portfolio's geographic exposure is narrowly focused. This concentration in a single region can limit opportunities for global diversification and increase susceptibility to regional economic and political events. Considering a broader geographic distribution could enhance resilience and access to growth opportunities in other markets.

Market capitalization Info

  • Mega-cap
    68%
  • Large-cap
    22%
  • Mid-cap
    10%

The portfolio's emphasis on mega and large-cap stocks is aligned with its growth orientation and preference for established companies with strong market positions. While these companies often offer stability and consistent returns, the limited exposure to mid and small-cap stocks may restrict potential for outsized gains from faster-growing firms. Increasing diversity across market capitalizations could introduce new growth vectors and risk mitigation benefits.

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.

While the portfolio has delivered strong returns, its current configuration is not on the Efficient Frontier, suggesting that there's room for improvement in achieving the best possible risk-return ratio. Adjusting the asset allocation could potentially increase expected returns for the same level of risk. This optimization process involves rebalancing towards a mix of assets that collectively offer a more favorable balance of risk and return.

Dividends Info

  • Apple Inc 0.40%
  • Bank of America Corp 2.20%
  • Costco Wholesale Corp 0.50%
  • Eli Lilly and Company 0.60%
  • Invesco NASDAQ 100 ETF 0.50%
  • Invesco S&P 500® Momentum ETF 0.60%
  • UnitedHealth Group Incorporated 2.80%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.08%

The overall dividend yield of the portfolio is relatively low, which is consistent with its growth-focused strategy. While reinvesting dividends from the few yield-generating holdings can contribute to compounding returns, investors seeking regular income might find the portfolio's yield insufficient. Balancing growth stocks with higher-yielding investments could offer a more attractive risk-reward ratio for those requiring income.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.04%

The portfolio benefits from relatively low costs, with the Total Expense Ratio (TER) averaging 0.04%. This efficiency is crucial for maximizing long-term returns, as higher costs can significantly erode investment gains over time. The choice of low-cost ETFs and stocks is commendable and aligns with best practices for cost-conscious investing.

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