Growth-oriented portfolio with a strong tech focus and significant US market exposure

Report created on Jul 19, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards technology, comprising nearly half of its allocation, and leans significantly on the US market with a substantial 86% exposure. The inclusion of five ETFs, each focusing on different aspects of the stock market, from broad US indices to specific sectors like technology and international stocks, indicates a strategy aimed at growth. Despite its classification as broadly diversified, the heavy concentration in technology and large-cap stocks suggests a more focused investment approach.

Growth Info

Historically, this portfolio has demonstrated a strong Compound Annual Growth Rate (CAGR) of 16.09%, with a maximum drawdown of -32.48%. These figures suggest a high-growth trajectory, albeit with notable volatility. The days contributing most to the returns highlight the portfolio's susceptibility to significant market movements, underscoring the importance of risk tolerance in managing such investments.

Projection Info

Monte Carlo simulations, which use historical data to project potential future outcomes, indicate a wide range of possibilities for this portfolio, from a modest 5th percentile gain to a robust 67th percentile performance. While these projections provide a spectrum of potential futures, it's crucial to remember that they are based on past data and cannot guarantee future results.

Asset classes Info

  • Stocks
    100%

The portfolio is exclusively invested in stocks, with no allocation to cash or other asset classes. This singular focus on equities enhances its growth potential but also increases its risk profile, particularly in market downturns. Diversifying across different asset classes could provide a buffer against stock market volatility.

Sectors Info

  • Technology
    49%
  • Financials
    10%
  • Consumer Discretionary
    9%
  • Telecommunications
    9%
  • Health Care
    7%
  • Industrials
    6%
  • Consumer Staples
    4%
  • Basic Materials
    2%
  • Energy
    2%
  • Utilities
    1%
  • Real Estate
    1%

With nearly half of the portfolio invested in technology, followed by financial services, consumer cyclicals, and communication services, the sectoral allocation underscores a preference for growth-oriented industries. However, this concentration also exposes the portfolio to sector-specific risks, such as regulatory changes or economic shifts affecting technology and consumer behavior.

Regions Info

  • North America
    86%
  • Europe Developed
    6%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

The portfolio's geographic allocation is heavily skewed towards North America, with minimal exposure to emerging markets and other developed regions. This concentration in a single geographic area may limit diversification benefits and expose the portfolio to regional economic and political risks.

Market capitalization Info

  • Mega-cap
    54%
  • Large-cap
    27%
  • Mid-cap
    14%
  • Small-cap
    3%
  • Micro-cap
    1%

A focus on mega and big-cap stocks, making up 81% of the portfolio, aligns with the portfolio's growth orientation but may limit opportunities in smaller, potentially faster-growing companies. Diversifying into medium, small, or micro-cap stocks could introduce more growth potential, albeit with added risk.

Redundant positions Info

  • Fidelity® Nasdaq Composite Index® ETF
    Fidelity® MSCI Information Technology Index ETF
    Schwab U.S. Large-Cap Growth ETF
    Vanguard S&P 500 ETF
    High correlation

The high correlation among the portfolio's assets, particularly within the technology sector, suggests limited diversification benefits. This overlap increases the portfolio's vulnerability to sector-specific downturns. Reducing asset overlap could enhance the portfolio's risk-adjusted returns by spreading risk more broadly across different investments.

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.

Optimizing this portfolio involves addressing the high correlation among its assets to improve diversification without sacrificing growth potential. Focusing on reducing overlap, particularly in the technology sector, and considering broader exposure to different sectors, geographies, and market caps could enhance the portfolio's risk-return profile.

Dividends Info

  • Fidelity® MSCI Information Technology Index ETF 0.40%
  • iShares Core MSCI Total International Stock ETF 3.00%
  • Fidelity® Nasdaq Composite Index® ETF 0.60%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.06%

The portfolio's overall dividend yield of 1.06% reflects a focus on growth over income, consistent with its asset allocation and sector choices. While dividends contribute to total returns, the relatively low yield indicates that capital appreciation is the primary goal of this investment strategy.

Ongoing product costs Info

  • Fidelity® MSCI Information Technology Index ETF 0.08%
  • iShares Core MSCI Total International Stock ETF 0.07%
  • Fidelity® Nasdaq Composite Index® ETF 0.21%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.08%

With a total expense ratio (TER) of 0.08%, the portfolio benefits from relatively low costs, which can significantly enhance long-term returns. Keeping investment costs low is a sound strategy, especially in growth-oriented portfolios where the compounding effect of costs can erode returns over time.

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