Growth-focused portfolio with high exposure to US tech and large-cap stocks
Report created on Aug 7, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
VO Vanguard S&P 500 ETF
VOO - US9229083632 70.00% -
QQ Invesco NASDAQ 100 ETF
QQQM - US46138G6492 30.00%
This portfolio is heavily concentrated in two ETFs: the Vanguard S&P 500 ETF and the Invesco NASDAQ 100 ETF, making up 70% and 30% of the portfolio, respectively. This structure leans significantly towards large-cap US equities, particularly in the technology sector. While this concentration in high-performing indexes may have contributed to strong historical returns, it also limits diversification across asset classes and geographies, potentially increasing volatility and risk.
Growth
The portfolio has shown an impressive Compound Annual Growth Rate (CAGR) of 15.81%, with a maximum drawdown of -27.42%. These figures suggest robust growth but also highlight periods of significant value decline, which is typical for growth-oriented portfolios. The days contributing most to returns indicate that a small number of very good days have driven performance, a characteristic of equity-heavy investments.
Projection
Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes with a median increase of 673.5%. While simulations can provide valuable insights, it's crucial to remember that they rely on past trends, which may not predict future movements accurately. This method shows potential for high returns but also underscores the risk inherent in the portfolio's current setup.
Asset classes
- Stocks 100%
The portfolio is entirely invested in stocks, with no allocation to bonds, real estate, or other asset classes. This singular focus on equities, particularly in the technology sector, can offer high growth potential but also exposes the investor to higher volatility and sector-specific downturns. Diversifying across different asset classes could provide a buffer during stock market fluctuations.
Sectors
- Technology 39%
- Consumer Discretionary 12%
- Telecommunications 11%
- Financials 10%
- Health Care 8%
- Industrials 7%
- Consumer Staples 6%
- Energy 2%
- Utilities 2%
- Basic Materials 2%
- Real Estate 2%
The technology sector dominates the portfolio at 39%, followed by consumer cyclicals and communication services. This sectoral allocation aligns with the growth profile but is also susceptible to market corrections, especially in tech-heavy indexes. Diversifying across more sectors could mitigate risk and smooth out returns over time.
Regions
- North America 99%
- Europe Developed 1%
With 99% of assets in North America, primarily the US, the portfolio's geographic exposure is very narrow. This concentration benefits from the strength of the US market but lacks global diversification, which could reduce risk and tap into growth opportunities in other regions.
Market capitalization
- Mega-cap 49%
- Large-cap 34%
- Mid-cap 16%
- Small-cap 1%
The portfolio's focus on mega (49%) and big (34%) cap stocks supports its growth orientation but may limit opportunities for higher returns from medium and small-cap investments, which can offer significant growth potential in bullish markets.
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 could be optimized for a better risk-return ratio by diversifying across more asset classes and geographies. While the current setup has performed well historically, broadening the investment base could potentially offer similar returns with reduced volatility.
Dividends
- Invesco NASDAQ 100 ETF 0.50%
- Vanguard S&P 500 ETF 1.20%
- Weighted yield (per year) 0.99%
The dividend yields from the Invesco NASDAQ 100 ETF and Vanguard S&P 500 ETF contribute a combined yield of 0.99% to the portfolio. While not the focus for growth-oriented investors, dividends offer a source of income and can provide a cushion during market downturns.
Ongoing product costs
- Invesco NASDAQ 100 ETF 0.15%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.07%
The portfolio benefits from low total expense ratios (TER), averaging 0.07%, which is advantageous for long-term growth. Keeping costs low is crucial in maximizing returns, especially in growth-focused portfolios where compound growth plays a significant role.
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