High-growth tech-focused portfolio with significant concentration in leading companies

Report created on Aug 4, 2025

Risk profile Info

6/7
Aggressive
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily weighted towards technology, with a significant concentration in a few high-growth tech companies and the inclusion of a broad market ETF. NVIDIA, Amazon, and Meta Platforms together constitute 70% of the portfolio, showcasing a strong belief in the tech sector's continued outperformance. The Vanguard S&P 500 ETF offers some diversification, albeit limited, given its 30% allocation. This composition suggests an aggressive growth strategy with a high tolerance for volatility and concentration risk.

Growth Info

Historically, this portfolio has exhibited impressive growth, boasting a Compound Annual Growth Rate (CAGR) of 38.46%. However, it's crucial to note the substantial maximum drawdown of -63.30%, which underscores the high-risk nature of this investment strategy. The days contributing to 90% of returns being concentrated in just 64 days further highlights the portfolio's volatility and the timing risk involved in such concentrated positions.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential returns for this portfolio. With 997 out of 1,000 simulations showing positive returns and a median projected growth of 5,731.8%, the outlook seems optimistic. However, the vast spread between the 5th and 67th percentiles (481.4% to 11,242.2%) illustrates the significant uncertainty and risk associated with this aggressive strategy.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, with no allocation to bonds, real estate, or other asset classes that might offer diversification benefits. This singular focus on equities, particularly within the tech sector, enhances growth potential but also increases susceptibility to market downturns, sector-specific shocks, and higher volatility.

Sectors Info

  • Technology
    45%
  • Consumer Discretionary
    23%
  • Telecommunications
    18%
  • Financials
    4%
  • Health Care
    3%
  • Industrials
    2%
  • Consumer Staples
    2%
  • Energy
    1%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

With 45% allocated to technology, followed by consumer cyclicals and communication services, the sectoral allocation underscores a concentrated bet on specific industries believed to offer superior growth. While this has historically been a profitable strategy, it's important to recognize the increased risk from such concentration. Diversifying across more sectors could mitigate some of this risk.

Regions Info

  • North America
    100%

Geographic exposure is exclusively North American, ignoring potential opportunities and diversification benefits available in developed European and Asian markets, as well as emerging markets. This geographical concentration may limit exposure to global growth trends and increase vulnerability to region-specific economic downturns.

Market capitalization Info

  • Mega-cap
    84%
  • Large-cap
    10%
  • Mid-cap
    5%

The focus on mega-cap companies (84%) aligns with the portfolio's growth and risk profile, as these companies often have more established business models and global reach. However, the limited exposure to smaller companies may mean missing out on higher growth potential elsewhere.

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 optimized for the best possible risk-return ratio due to its high concentration in a few stocks and sectors. Diversifying across more asset classes and sectors could potentially offer a more favorable balance of risk and return, enhancing the portfolio's efficiency.

Dividends Info

  • Meta Platforms Inc. 0.30%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.40%

The overall dividend yield of the portfolio is relatively low at 0.40%, reflecting the growth-oriented nature of the holdings. For investors seeking income, this may be a drawback, but for those prioritizing capital appreciation, reinvesting these dividends could compound growth over time.

Ongoing product costs Info

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

The portfolio's costs are impressively low, with the Total Expense Ratio (TER) at just 0.01%. This efficiency supports better long-term performance by minimizing the drag on returns due to fees. The low cost of the Vanguard S&P 500 ETF is particularly beneficial in maintaining overall cost effectiveness.

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