A growth-focused portfolio with heavy tech exposure and limited diversification

Report created on Sep 30, 2025

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 highly concentrated, with 50% in a broad market ETF (Vanguard S&P 500 ETF) and the remaining 50% divided equally among five large-cap tech stocks. This structure indicates a clear growth orientation but comes with low diversification due to its heavy reliance on a single sector and a small number of individual stocks. While the S&P 500 ETF provides exposure to a wide range of companies, the significant allocation to individual tech stocks introduces a higher level of unsystematic risk.

Growth Info

The portfolio has experienced a compelling Compound Annual Growth Rate (CAGR) of 28.09%, though it has also faced a substantial maximum drawdown of -52.92%. This performance reflects the high-growth, high-volatility nature of tech stocks and the broader market. The days contributing most to returns highlight the portfolio's susceptibility to significant market movements, emphasizing the need for investors to have a high risk tolerance and a long-term perspective to weather potential downturns.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, show a wide range of potential outcomes for this portfolio. While the vast majority of simulations predict positive returns, the significant spread between the 5th and 67th percentiles underscores the high level of uncertainty and risk. Investors should understand that such simulations are hypothetical and cannot guarantee future results, but they do offer a useful tool for assessing potential risk and reward.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, with no allocation to other asset classes like bonds or real estate. This allocation supports the portfolio's growth focus but limits diversification across asset classes, potentially increasing volatility and risk. Including a variety of asset classes can help smooth out returns over time, especially during periods when the stock market is underperforming.

Sectors Info

  • Technology
    38%
  • Telecommunications
    25%
  • Consumer Discretionary
    15%
  • Financials
    7%
  • Health Care
    4%
  • Industrials
    4%
  • Consumer Staples
    3%
  • Energy
    2%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

Technology stocks dominate the portfolio, comprising 38% of the allocation, followed by communication services and consumer cyclicals. This sector concentration aligns with the portfolio's growth objectives but also increases sensitivity to sector-specific risks. Diversifying across a broader range of sectors could help mitigate these risks while still allowing for significant growth potential.

Regions Info

  • North America
    100%

The portfolio's geographic exposure is entirely focused on North America, specifically the United States. This concentration benefits from the dynamic and innovative U.S. market but misses out on potential opportunities and diversification benefits from developed and emerging markets elsewhere. Expanding geographic exposure could reduce vulnerability to U.S.-specific economic downturns.

Market capitalization Info

  • Mega-cap
    73%
  • Large-cap
    17%
  • Mid-cap
    9%
  • Small-cap
    1%

With 73% in mega-cap stocks, the portfolio is skewed towards companies with the largest market capitalizations, which typically offer stability and steady growth. However, this focus may limit exposure to faster-growing small and mid-cap stocks. Balancing market cap exposure could introduce more growth opportunities, albeit with potentially higher volatility.

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, this portfolio may not be fully optimized for the best risk-return ratio due to its limited diversification and heavy concentration in a single sector. Adjusting the asset allocation to include a broader mix of sectors, asset classes, and geographic regions could potentially move the portfolio closer to the Efficient Frontier, improving the balance between risk and return.

Dividends Info

  • Alphabet Inc Class A 0.30%
  • Meta Platforms Inc. 0.30%
  • Microsoft Corporation 0.60%
  • Vanguard S&P 500 ETF 0.90%
  • Weighted yield (per year) 0.57%

The overall dividend yield of the portfolio is relatively low, reflecting the growth orientation of the holdings. While dividends are not the primary goal of this investment strategy, they can provide a source of income and contribute to total returns, especially in volatile or down markets. Investors might consider a slightly higher allocation to dividend-paying assets for balance.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.02%

The portfolio benefits from exceptionally low costs, with a Total Expense Ratio (TER) of just 0.02%. This efficiency is crucial for long-term growth, as lower costs directly translate to higher net returns. The low-cost structure is a strong aspect of the portfolio, supporting its growth objectives without unnecessary drag from fees.

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