Growth-focused portfolio with strong tech exposure and global diversification
Report created on Aug 7, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
QQ Invesco QQQ Trust
QQQ - US46090E1038 40.00% -
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 40.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 20.00%
This portfolio is heavily weighted towards technology, with 40% in the Invesco QQQ Trust, which tracks the NASDAQ-100 Index, and another 40% in the Vanguard Total Stock Market Index Fund ETF Shares, providing broad exposure to the U.S. stock market. The remaining 20% is in the Vanguard Total International Stock Index Fund ETF Shares, offering international diversification. This composition suggests a growth-oriented strategy with a significant tilt towards the tech sector, balanced by a comprehensive coverage of the U.S. and international markets.
Growth
The portfolio has shown a Compound Annual Growth Rate (CAGR) of 15.01%, with a maximum drawdown of -31.31%. This performance indicates a strong growth trajectory, albeit with significant volatility, as evidenced by the drawdown. The days contributing to 90% of returns being concentrated in 33.0 days highlight the portfolio's susceptibility to short-term market movements and the importance of staying invested during these critical periods for capturing gains.
Projection
Monte Carlo simulations, using 1,000 iterations, project a wide range of outcomes for this portfolio, from a 5th percentile of 79.8% to a 67th percentile of 666.5% growth. This wide dispersion underscores the uncertainty inherent in forecasting and the importance of maintaining a long-term perspective. The simulations' median outcome suggests significant potential for growth, aligning with the portfolio's growth profile.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's asset allocation is almost entirely in stocks (99%), with a minimal cash holding (1%). This allocation aligns with its growth-oriented investment strategy but comes with higher volatility and risk. The lack of diversification into other asset classes like bonds or real estate may limit the portfolio's ability to hedge against stock market downturns.
Sectors
- Technology 36%
- Consumer Discretionary 12%
- Telecommunications 11%
- Financials 10%
- Industrials 8%
- Health Care 8%
- Consumer Staples 6%
- Basic Materials 3%
- Energy 2%
- Utilities 2%
- Real Estate 2%
Technology, consumer cyclicals, and communication services dominate the sectoral allocation, comprising 59% of the portfolio. This concentration in high-growth sectors supports the portfolio's overall strategy but may increase vulnerability to sector-specific risks. Diversifying into more defensive sectors could provide a buffer during market downturns without significantly compromising growth potential.
Regions
- North America 80%
- Europe Developed 8%
- Asia Emerging 3%
- Japan 3%
- Asia Developed 2%
- Australasia 1%
- Latin America 1%
- Africa/Middle East 1%
With 80% of assets allocated to North America, the portfolio is heavily skewed towards the U.S. market. While this reflects confidence in the U.S. economy's growth prospects, it also exposes the portfolio to geographic concentration risk. Increasing exposure to developed Europe, Asia, and emerging markets could enhance global diversification and potentially tap into growth opportunities outside the U.S.
Market capitalization
- Mega-cap 47%
- Large-cap 32%
- Mid-cap 16%
- Small-cap 3%
- Micro-cap 1%
The portfolio's exposure is primarily to mega (47%) and big (32%) cap stocks, which is typical for growth-focused portfolios seeking stability and growth potential. However, this concentration in larger companies may miss out on the higher growth potential of mid and small-cap stocks. A slight rebalance towards medium and small caps could introduce more growth opportunities, albeit with added risk.
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, the portfolio's current allocation suggests it is positioned for high growth but with substantial risk. There may be opportunities to optimize the risk-return profile by adjusting the asset allocation, particularly by increasing diversification across asset classes and sectors. However, any adjustments should be carefully considered to maintain alignment with the growth-oriented investment strategy.
Dividends
- Invesco QQQ Trust 0.50%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.24%
The portfolio's dividend yield averages 1.24%, with the highest yield from the Vanguard Total International Stock Index Fund ETF Shares at 2.80%. While the focus is on growth, dividends contribute to total returns and provide a revenue stream, which can be particularly beneficial during market downturns or for reinvestment.
Ongoing product costs
- Invesco QQQ Trust 0.20%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.10%
The portfolio benefits from low total expense ratios (TER), averaging 0.10% across all holdings. This cost efficiency is crucial for long-term growth, as lower costs directly translate to higher net returns. The emphasis on low-cost ETFs is a prudent strategy for maintaining portfolio growth without being eroded by high fees.
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