Growth-focused portfolio with high tech exposure and low diversification

Report created on Oct 14, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

Your portfolio is heavily weighted towards technology, with 60% in a broad market ETF, 20% in a leading tech company, and another 20% in a momentum ETF that likely has significant tech exposure. This composition suggests a strong belief in the technology sector's continued growth. However, it also indicates low diversification, as evidenced by the entire portfolio being invested in stocks, particularly within a single region (North America) and a few sectors.

Growth Info

Historically, your portfolio has shown impressive growth, with a CAGR of 31.38%. However, the maximum drawdown of -58.30% indicates significant volatility and risk, particularly for a portfolio with such a high concentration in tech. The days contributing to 90% of returns being so few suggests that the portfolio's performance is highly dependent on specific market conditions, which can be a double-edged sword.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 12,957.4%, highlighting the potential for substantial growth. However, the wide spread between the 5th and 67th percentiles underscores the high risk associated with this portfolio. It's important to remember that these projections are based on historical data and assumptions that may not accurately predict future performance.

Asset classes Info

  • Stocks
    100%

Your portfolio's allocation is entirely in stocks, which can offer high returns but also comes with significant risk, especially with such a concentrated exposure. Diversifying across different asset classes, like bonds or real estate, could help mitigate some of this risk while still allowing for growth.

Sectors Info

  • Technology
    48%
  • Financials
    12%
  • Telecommunications
    9%
  • Consumer Discretionary
    7%
  • Industrials
    7%
  • Health Care
    6%
  • Consumer Staples
    4%
  • Utilities
    2%
  • Energy
    2%
  • Real Estate
    1%
  • Basic Materials
    1%

The technology sector makes up nearly half of your portfolio, with other sectors like financial services and communication services also having notable shares. This sectoral concentration increases your exposure to sector-specific risks, such as regulatory changes or technological shifts, which could disproportionately affect your portfolio's performance.

Regions Info

  • North America
    100%

With 100% of your assets in North America, your portfolio lacks geographical diversification. This concentration in a single region increases your vulnerability to local economic downturns and misses out on potential growth opportunities in other parts of the world, such as emerging markets.

Market capitalization Info

  • Mega-cap
    58%
  • Large-cap
    28%
  • Mid-cap
    13%
  • Small-cap
    1%

Your portfolio's focus on mega and big-cap companies, while potentially less volatile than smaller caps, may limit growth opportunities. Smaller companies often offer higher growth potential, albeit with increased risk. Considering a more balanced market cap distribution could enhance returns while managing 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 Efficient Frontier, your portfolio's current allocation suggests there may be room for optimization to achieve a better risk-return balance. While the tech sector has historically provided strong returns, the high concentration increases risk. Adjusting the asset allocation to include a broader mix could improve the portfolio's efficiency.

Dividends Info

  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.84%

The dividend yield of your portfolio stands at 0.84%, which is relatively modest. Given your growth-focused strategy, this is not surprising, but incorporating assets with higher dividend yields could provide a steady income stream and reduce volatility without significantly compromising growth potential.

Ongoing product costs Info

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

Your portfolio benefits from low costs, with a total expense ratio (TER) of 0.04%. This is excellent for maximizing long-term returns, as lower costs mean more of your investment returns are kept. Maintaining focus on cost efficiency is commendable and should continue to be a priority.

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