A concentrated growth portfolio tilted to large US technology leaders with moderate income support

Report created on Sep 4, 2024

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 tilted to individual US stocks with one broad index ETF making up a quarter of the mix. It’s clearly built for growth: 100% in stocks, no bonds or cash, and several big-name companies carrying meaningful weights. Compared with a typical broad benchmark that holds thousands of positions, this setup is much more concentrated, especially in a handful of large firms. That concentration can boost returns if those names keep winning, but it also makes the ride bumpier. One way to smooth things over time could be gradually shifting a bit more toward broad, diversified funds instead of relying so much on single stocks.

Growth Info

Historically, this portfolio has done extremely well, with a compound annual growth rate (CAGR) near 29%. CAGR is like the “average speed” of your money over the whole journey, smoothing out year-to-year bumps. A max drawdown of about -25% means the largest peak‑to‑trough drop was big but not extreme for a growth profile. The fact that 90% of gains came in just 33 days shows how a few great days drove results. This is common in equity-heavy setups. It also means missing those big days can seriously hurt results, so staying invested and avoiding emotional timing is especially important.

Projection Info

The Monte Carlo analysis, which runs many “what if” simulations using historical patterns, shows a huge range of possible futures. A median outcome above 2,000% sounds amazing, but that’s just one point in a very wide cone of uncertainty. The 5th percentile around 31% reminds us that unlucky paths still exist, even with strong past numbers. Monte Carlo is helpful for seeing how bumpy the journey might be, but it can’t predict new crises or regime changes. Treat these projections as rough weather maps, not promises. If this kind of volatility looks stressful, scaling risk down over time could help match returns more closely with comfort level.

Asset classes Info

  • Stocks
    100%

Being 100% in stocks means the portfolio is fully tied to equity markets, with no built‑in ballast from bonds or cash. Equities are the long‑term growth engine in most portfolios, but they also swing more in recessions or panicky markets. Many broad benchmarks mix in bonds and sometimes other assets to provide stability and reduce the size of drawdowns. This all‑stock structure fits a growth orientation but leaves little protection when markets fall. One simple tweak over time could be adding a modest slice of more defensive assets to create a cushion, especially as the time horizon shortens or large withdrawals get closer.

Sectors Info

  • Technology
    34%
  • Health Care
    12%
  • Industrials
    12%
  • Financials
    8%
  • Consumer Discretionary
    8%
  • Consumer Staples
    6%
  • Energy
    6%
  • Utilities
    6%
  • Real Estate
    5%
  • Telecommunications
    3%

Sector exposure is quite skewed: technology dominates, with meaningful slices in healthcare, industrials, and several other areas. This tilt is common in growth‑oriented portfolios, and it has helped in a market where large tech and related names have led the way. The flip side is higher sensitivity to things like interest rate changes or regulatory shifts that often hit tech and growth stocks hardest. This sector mix is reasonably broad overall and lines up fairly well with many US benchmarks, which is a positive sign. To avoid over‑relying on one theme, gradually balancing new contributions into underrepresented, steadier sectors can reduce the chance that one trend defines the whole outcome.

Regions Info

  • North America
    100%

All holdings are in North America, essentially making this a pure US‑focused portfolio. That home bias has been rewarded over the last decade, as US markets, especially large growth names, have beaten many international peers. The downside is missed diversification: foreign markets sometimes do well when the US lags, and currency differences can also smooth returns. Most global benchmarks give a significant slice to non‑US stocks for this reason. Keeping a strong US core is perfectly reasonable, and the current alignment with US standards is solid. If you ever want more resilience against a US‑specific downturn, slowly adding a global or ex‑US fund could broaden the opportunity set.

Market capitalization Info

  • Mega-cap
    52%
  • Large-cap
    39%
  • No data
    5%
  • Mid-cap
    4%

The mix is dominated by mega‑ and large‑cap companies, with over 90% in the biggest players. Large caps tend to be more stable and established, which reduces some company‑specific risk compared with tiny speculative names. This makes the portfolio’s growth tilt more “blue chip growth” than pure high‑flyer speculation, which is a strength. On the other hand, there’s very little exposure to small and mid‑cap stocks, which historically have sometimes delivered strong long‑term returns and different cycles. If you ever want more diversification by company size, directing some new money into broader funds that include mid and small caps can expand the growth engine while still keeping risk manageable.

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.

On a risk‑return chart, this portfolio probably sits above average return but with higher volatility, reflecting its growth style. The Efficient Frontier is a curve that shows the best possible trade‑offs between risk and return using the same building blocks; “efficient” just means no other mix of these exact holdings would give higher return for the same risk. With the current set of assets, shifting some weight from individual stocks into the broad ETF could move the portfolio closer to that efficient line, improving the risk‑return ratio. This doesn’t necessarily mean adding new products—just rebalancing among what’s already here to reduce concentration and smooth the ride while keeping a strong growth profile.

Dividends Info

  • Apple Inc 0.40%
  • AbbVie Inc 2.90%
  • Broadcom Inc 0.70%
  • Carpenter Technology Corporation 0.20%
  • Diamondback Energy Inc 2.60%
  • JPMorgan Chase & Co. 5.80%
  • Nextera Energy Inc 2.80%
  • Realty Income Corporation 5.50%
  • Vanguard S&P 500 ETF 1.10%
  • Waste Management Inc 1.10%
  • Walmart Inc 0.60%
  • Weighted yield (per year) 1.55%

The overall dividend yield of about 1.55% is modest but not trivial for a growth‑oriented setup. Several holdings, including income‑oriented names and preferred shares, provide attractive yields that can soften volatility by adding a steady cash stream. Dividends are simply regular cash payments from companies, and reinvesting them can quietly boost long‑term compounding. This blend of growth leaders with a few stronger income names is a nice balance and aligns well with common best practices for a growth‑with‑income style. Just keep in mind that dividends are not guaranteed and can be cut, so it’s wise not to rely on them alone for essential spending needs.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.01%

Costs are impressively low, with the main ETF charging a tiny fee and the overall total expense ratio estimated around 0.01%. Low costs matter because fees come off your returns every year, like a slow leak in a tire. Keeping them minimal means more of the growth you earn actually stays in your account, which compounds over time. Using a low‑cost index ETF as a core holding is a textbook move and strongly supports long‑term performance. Since trading commissions and taxes can still add hidden costs, keeping turnover reasonable and avoiding unnecessary churning can further protect the portfolio’s efficiency. You’re clearly on the right track here.

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