Strategically focused growth portfolio with a high concentration in technology and S&P 500 ETFs

Report created on Sep 23, 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 concentrated with 70% invested in S&P 500 ETFs and 30% in a technology index, indicating a strong focus on growth sectors, particularly technology. The asset allocation is entirely in stocks, with no diversification into other asset classes such as bonds or real estate. This composition suggests a strategy that seeks to capitalize on the growth potential of large-cap U.S. equities and the tech sector but comes with low diversification across asset classes and sectors outside of technology and financial services.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 22.45%, with a significant maximum drawdown of -32.34%. These figures point to high volatility but also substantial growth potential. The days contributing to 90% of returns being concentrated in a relatively short period indicate that the portfolio's performance is subject to significant swings, which is common in growth-oriented strategies focused on sectors like technology.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential portfolio values, from 375.9% to 2,651.8% growth at key percentiles. This wide range underscores the high level of uncertainty and risk associated with this portfolio's aggressive growth strategy. However, every simulation resulted in positive returns, highlighting the potential for substantial gains despite the inherent risks.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is exclusively in stocks, lacking exposure to bonds, real estate, or other diversifying asset classes. This singular focus enhances growth potential but also increases susceptibility to market volatility. Diversifying across different asset classes can provide a buffer against stock market downturns and reduce overall portfolio risk.

Sectors Info

  • Technology
    51%
  • Financials
    11%
  • Consumer Discretionary
    9%
  • Telecommunications
    8%
  • Industrials
    6%
  • Consumer Staples
    5%
  • Health Care
    4%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    1%
  • Basic Materials
    1%

With over half of the portfolio invested in technology, followed by smaller allocations to financial services and consumer cyclicals, the sector distribution reinforces the portfolio's growth orientation. However, this concentration in technology can lead to higher volatility, especially during market downturns or sector-specific setbacks. Balancing with sectors that have different economic sensitivities could mitigate risk.

Regions Info

  • North America
    100%

The geographic allocation is entirely focused on North America, with no exposure to developed or emerging markets outside of this region. This geographic concentration limits diversification benefits and exposes the portfolio to regional economic and market risks. Expanding into international markets could offer additional growth opportunities and reduce the portfolio's vulnerability to U.S.-specific economic cycles.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    32%
  • Mid-cap
    14%
  • Small-cap
    3%
  • Micro-cap
    1%

The emphasis on mega and large-cap stocks, comprising 82% of the portfolio, aligns with the growth and stability objectives typical of such companies. However, the minimal exposure to small and micro-cap stocks limits potential high-growth opportunities these segments can offer. Incorporating a broader range of market capitalizations could enhance returns and diversification.

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-return profile, there's potential for optimization towards the Efficient Frontier. This would involve adjusting the asset allocation to achieve the best possible risk-return ratio. Given the portfolio's heavy emphasis on technology and large-cap stocks, diversifying into other sectors, asset classes, and geographic regions could enhance efficiency by improving the balance between risk and return.

Dividends Info

  • Invesco S&P 500® Momentum ETF 0.50%
  • Vanguard Information Technology Index Fund ETF Shares 0.40%
  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 0.71%

The portfolio's dividend yield stands at 0.71%, which is relatively modest. This yield reflects the growth-focused nature of the portfolio, as such investments typically reinvest earnings rather than distribute them as dividends. For investors seeking income, increasing exposure to higher-yielding assets or sectors could be beneficial.

Ongoing product costs Info

  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.08%

The portfolio's total expense ratio (TER) of 0.08% is impressively low, which supports better long-term performance by minimizing the drag on returns. Keeping costs low is crucial for maximizing investment growth, and this portfolio exemplifies efficient cost management in its selection of low-fee ETFs.

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