A tech-heavy aggressive portfolio with high growth potential and low diversification

Report created on Aug 20, 2025

Risk profile Info

6/7
Aggressive
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is highly concentrated in the technology and consumer cyclical sectors, with significant positions in NVIDIA Corporation, Amazon.com Inc, Alphabet Inc Class A, Advanced Micro Devices Inc, and a single ETF, the Schwab U.S. Large-Cap Growth ETF. This composition reflects a strong focus on growth-oriented large-cap stocks, especially within the tech industry. Such concentration increases potential volatility and risk, particularly given the aggressive risk profile and the low diversification score. While this setup can offer substantial rewards, it also exposes the portfolio to sector-specific downturns.

Growth Info

The historical performance showcases a Compound Annual Growth Rate (CAGR) of 41.69%, which is impressive. However, the maximum drawdown of -63.15% indicates significant volatility and potential for large losses during market downturns. The days contributing to 90% of returns being concentrated in 68.0 days highlights the portfolio's reliance on short, sharp gains, which is typical for high-growth tech stocks but adds to the risk.

Projection Info

Monte Carlo simulations suggest a wide range of outcomes, with the 50th percentile projecting an increase of 12,451.9%, indicating strong growth potential. However, the broad spread to the 5th percentile at 686.0% underlines the high risk and uncertainty inherent in this portfolio. These projections, while optimistic, should be viewed with caution as they are based on historical data and cannot guarantee future performance.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no diversification into other asset classes like bonds or real estate. This allocation supports the aggressive growth strategy but increases susceptibility to market volatility. Including a variety of asset classes could mitigate risk without significantly compromising growth potential.

Sectors Info

  • Technology
    50%
  • Telecommunications
    23%
  • Consumer Discretionary
    22%
  • Health Care
    2%
  • Financials
    1%
  • Industrials
    1%

With 50% in technology, 23% in communication services, and 22% in consumer cyclicals, the portfolio is heavily skewed towards sectors that are sensitive to economic cycles and can experience rapid changes in valuation. While these sectors can offer high returns, they also pose a higher risk, especially in market downturns. A more balanced sector allocation could provide a smoother return profile.

Regions Info

  • North America
    100%

The geographic allocation is entirely focused on North America, missing out on potential opportunities and diversification benefits from developed European or emerging markets. This geographic concentration further increases the portfolio's risk profile, as it is heavily dependent on the economic and regulatory environment of a single region.

Market capitalization Info

  • Mega-cap
    93%
  • Large-cap
    4%
  • Mid-cap
    2%

With 93% in mega-cap stocks, the portfolio leans towards companies with large market capitalizations, which are typically more stable than smaller companies but can still be volatile in the tech sector. Including a broader mix of market caps could enhance diversification and potentially reduce 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.

Given the portfolio's current structure, optimizing for the Efficient Frontier could enhance the risk-return balance. This means adjusting the asset allocation to achieve the highest possible return for a given level of risk. However, such optimization would likely involve diversifying beyond the current heavy focus on tech stocks and North America.

Dividends Info

  • Alphabet Inc Class A 0.40%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Weighted yield (per year) 0.16%

The portfolio's dividend yield is relatively low, reflecting its focus on growth stocks, which typically reinvest earnings rather than pay dividends. While this is in line with the portfolio's aggressive growth strategy, incorporating dividend-paying stocks could provide a steady income stream and reduce volatility.

Ongoing product costs Info

  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Weighted costs total (per year) 0.01%

The overall costs are impressively low, with the Schwab U.S. Large-Cap Growth ETF charging just 0.04% and a total expense ratio (TER) of 0.01%. This cost efficiency is a positive aspect, ensuring that more of the portfolio’s returns are retained by the investor.

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