A growth-focused portfolio with high tech exposure and low diversification

Report created on Nov 8, 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 heavily weighted towards equities, with a significant emphasis on technology through the Invesco QQQ Trust. The Vanguard S&P 500 ETF provides broad market exposure, while the Schwab U.S. Dividend Equity ETF adds an income component. The allocation suggests a growth-oriented strategy but with low diversification, as it is concentrated in large-cap U.S. stocks and lacks exposure to international markets, smaller companies, and other asset classes.

Growth Info

The portfolio has shown a Compound Annual Growth Rate (CAGR) of 16.04%, which is impressive. However, the maximum drawdown of -31.69% indicates potential volatility and risk, particularly during market downturns. The days contributing to 90% of returns being limited to 37.0 highlights the portfolio's dependency on short periods of significant gains, underscoring its growth focus but also its susceptibility to market swings.

Projection Info

Monte Carlo simulations, which use historical data to predict a range of potential outcomes, suggest a wide variance in future portfolio performance, with a median increase of 681.1%. While the simulations mostly predict positive returns, the broad range between the 5th and 67th percentiles (123.6% to 972.7%) highlights the uncertainty and risk inherent in this growth-focused strategy.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, providing no asset class diversification. While stocks have historically offered high returns, they also come with higher volatility compared to bonds or real estate. This all-equity strategy aligns with a growth-focused investor but increases risk during market downturns, lacking the buffer that fixed income or alternative investments might provide.

Sectors Info

  • Technology
    36%
  • Consumer Discretionary
    11%
  • Telecommunications
    11%
  • Health Care
    9%
  • Financials
    8%
  • Consumer Staples
    8%
  • Industrials
    7%
  • Energy
    5%
  • Utilities
    2%
  • Basic Materials
    1%
  • Real Estate
    1%

Technology, at 36%, is the most heavily weighted sector, followed by consumer cyclicals and communication services. This sectoral distribution aligns with a growth-oriented approach but increases susceptibility to sector-specific risks. Diversifying across a broader range of sectors could reduce volatility and improve the portfolio's resilience to sector-specific downturns.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

The portfolio's geographic allocation is almost entirely in North America (99%), with minimal exposure to developed Europe and no presence in emerging markets or other regions. This geographic concentration can limit opportunities for global diversification and exposure to potential growth in other economies, increasing the portfolio's vulnerability to regional economic cycles.

Market capitalization Info

  • Mega-cap
    40%
  • Large-cap
    38%
  • Mid-cap
    19%
  • Small-cap
    2%

The focus on mega (40%) and big (38%) cap stocks supports the portfolio's growth orientation but limits exposure to the potentially higher growth rates of medium, small, and micro-cap stocks. While large-cap stocks are generally less volatile, diversifying across different market capitalizations could provide additional growth opportunities and risk mitigation.

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 portfolio's current composition and risk score, there's room for optimization towards the Efficient Frontier, which could improve the risk-return ratio. This would involve diversifying across more asset classes and regions, and potentially adjusting sector and market cap exposures to achieve a more balanced approach without sacrificing growth potential.

Dividends Info

  • Invesco QQQ Trust 0.50%
  • Schwab U.S. Dividend Equity ETF 3.90%
  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 1.48%

The dividend yield of the portfolio averages 1.48%, with the Schwab U.S. Dividend Equity ETF contributing the most to this income. While the focus is clearly on growth, dividends provide a source of income and can offer a buffer during market volatility. However, the relatively low overall yield indicates that income is not the primary objective of this portfolio.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.09%

The portfolio benefits from low overall costs, with a Total Expense Ratio (TER) of 0.09%. Low costs are crucial for long-term growth, as they directly enhance net returns. This aspect of the portfolio is well-optimized, supporting better performance over time without unnecessary drag from high fees.

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