Growth-oriented portfolio with high exposure to US equities and tech sector

Report created on Jul 18, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards US equities, particularly within the technology sector, and demonstrates a strong preference for ETFs and index funds that track major US market indices. The significant allocations to the Vanguard S&P 500 ETF, Invesco NASDAQ 100 ETF, and SPDR S&P 500 ETF Trust highlight a growth-focused strategy. However, this concentration raises questions about diversification, especially given the overlapping exposures to similar asset classes and sectors.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 16.58%, with a maximum drawdown of -30.46%. These figures suggest a high-growth trajectory, albeit with notable volatility. The days contributing to 90% of returns being limited to 19 indicates that the portfolio's performance is heavily reliant on specific, high-impact trading days, underscoring the importance of staying invested during market fluctuations.

Projection Info

Monte Carlo simulations, using historical data to project future performance, suggest a wide range of outcomes, with the 50th percentile at a 675.9% return. While encouraging, it's crucial to remember that these projections are based on past trends, which are not guaranteed to repeat. Diversification and periodic rebalancing are essential strategies to mitigate risk in the face of uncertain future returns.

Asset classes Info

  • Stocks
    98%
  • Cash
    1%

The portfolio's asset class distribution is overwhelmingly in stocks (98%), with a minor allocation to cash (1%) and no investment in bonds. This allocation aligns with a growth-oriented strategy but comes with higher volatility and risk. Incorporating bonds or other asset classes could provide better risk-adjusted returns, especially during market downturns.

Sectors Info

  • Technology
    38%
  • Telecommunications
    11%
  • Financials
    10%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Industrials
    7%
  • Consumer Staples
    6%
  • Energy
    2%
  • Utilities
    2%
  • Consumer Discretionary
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

Technology dominates the sector allocation at 38%, followed by communication services and financial services. This tech-heavy focus enhances growth potential but also increases susceptibility to sector-specific downturns. Diversifying into underrepresented sectors could reduce volatility without significantly compromising growth potential.

Regions Info

  • North America
    95%
  • Europe Developed
    2%
  • Asia Emerging
    1%
  • Asia Developed
    1%
  • Japan
    1%

With 95% of assets allocated in North America, the portfolio's geographic exposure is highly concentrated. Expanding into more international markets, especially in developed Europe and emerging Asia, could offer additional growth opportunities and risk mitigation through geographic diversification.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    33%
  • Mid-cap
    16%
  • Small-cap
    1%

The portfolio's market capitalization breakdown shows a strong bias towards mega (47%) and big (33%) cap stocks, which is typical for growth-oriented portfolios focusing on stability and scalability. However, integrating medium, small, or micro-cap stocks could enhance potential returns, albeit with increased risk.

Redundant positions Info

  • ProShares UltraPro S&P500
    VANGUARD 500 INDEX FUND ADMIRAL SHARES
    VANGUARD TOTAL STOCK MARKET INDEX FUND INSTITUTIONAL PLUS SHARES
    Vanguard S&P 500 ETF
    Fidelity 500 Index Fund
    SPDR S&P 500 ETF Trust
    High correlation
  • Invesco QQQ Trust
    Invesco NASDAQ 100 ETF
    ProShares UltraPro QQQ
    High correlation

The high correlation among several assets, especially within S&P 500 and NASDAQ trackers, indicates redundant exposures that don't contribute to diversification. Reducing overlap by consolidating similar investments or reallocating to less correlated assets can enhance portfolio efficiency without sacrificing growth.

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 investments, particularly those tracking the S&P 500 and NASDAQ. By eliminating redundant assets and considering investments in underrepresented sectors or geographies, the portfolio can achieve a more efficient risk-return profile.

Dividends Info

  • Fidelity 500 Index Fund 0.90%
  • Invesco QQQ Trust 0.40%
  • Invesco NASDAQ 100 ETF 0.50%
  • VanEck Semiconductor ETF 0.40%
  • SPDR S&P 500 ETF Trust 0.90%
  • ProShares UltraPro QQQ 1.10%
  • ProShares UltraPro S&P500 0.90%
  • VANGUARD 500 INDEX FUND ADMIRAL SHARES 0.90%
  • Vanguard Federal Money Market Fund Investor Shares 4.20%
  • Vanguard S&P 500 ETF 1.20%
  • VANGUARD TOTAL STOCK MARKET INDEX FUND INSTITUTIONAL PLUS SHARES 0.90%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND INSTITUTIONAL SHARES 2.10%
  • Weighted yield (per year) 0.96%

Dividend yields across the portfolio average 0.96%, with the Vanguard Federal Money Market Fund Investor Shares offering a notable 4.20%. While dividends are not the primary focus of this growth-oriented portfolio, they provide a steady income stream and can contribute to total return, especially in volatile or declining markets.

Ongoing product costs Info

  • Fidelity 500 Index Fund 0.02%
  • Invesco QQQ Trust 0.20%
  • Invesco NASDAQ 100 ETF 0.15%
  • VanEck Semiconductor ETF 0.35%
  • SPDR S&P 500 ETF Trust 0.10%
  • ProShares UltraPro QQQ 0.88%
  • ProShares UltraPro S&P500 0.92%
  • VANGUARD 500 INDEX FUND ADMIRAL SHARES 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • VANGUARD TOTAL STOCK MARKET INDEX FUND INSTITUTIONAL PLUS SHARES 0.02%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND INSTITUTIONAL SHARES 0.06%
  • Weighted costs total (per year) 0.12%

The portfolio's total expense ratio (TER) of 0.12% is impressively low, which is beneficial for long-term growth. Keeping costs minimal is crucial in maximizing net returns, a principle well-applied here. However, attention should also be paid to performance and diversification, not just costs.

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