Growth-focused portfolio with strong tech orientation and moderate diversification

Report created on Jul 31, 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 exhibits a significant emphasis on technology and growth stocks, with top holdings in major ETFs like the Vanguard Total Stock Market Index Fund ETF Shares and individual tech giants such as NVIDIA Corporation and Taiwan Semiconductor Manufacturing. The concentration in ETFs suggests an attempt at diversification, yet the heavy tech weighting indicates a growth-oriented strategy. The blend of ETFs and individual stocks is a common approach to balance broad market exposure with targeted bets on specific companies.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 24.61%, a remarkable figure that underscores its growth focus. However, the maximum drawdown of -38.78% signals substantial volatility, likely due to its tech-heavy composition. Days contributing to 90% of returns being limited to 26 indicates that the portfolio's performance is significantly influenced by short, sharp movements, characteristic of growth stocks and sectors like technology.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential future outcomes, suggest a wide range of possible returns for this portfolio. With 951 out of 1,000 simulations yielding positive returns, the median projection shows a substantial potential upside. However, the broad spread between the 5th and 67th percentiles highlights the inherent risk and uncertainty in such growth-focused investments.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is exclusively in stocks, with no representation from bonds, cash, or alternative assets. This singular focus on equities enhances growth potential but also increases volatility and risk, particularly in market downturns. Diversifying across asset classes could help mitigate some of this risk while still aiming for growth.

Sectors Info

  • Technology
    47%
  • Telecommunications
    12%
  • Consumer Discretionary
    11%
  • Industrials
    10%
  • Financials
    7%
  • Health Care
    5%
  • Consumer Staples
    3%
  • Energy
    1%
  • Real Estate
    1%
  • Basic Materials
    1%
  • Utilities
    1%

With 47% in technology, the sector allocation underscores the portfolio's growth orientation. The presence of communication services and consumer cyclicals further tilts the portfolio towards high-growth but volatile sectors. While this sectoral focus is aligned with the portfolio's growth objectives, it also concentrates risk, making it more susceptible to sector-specific downturns.

Regions Info

  • North America
    90%
  • Asia Emerging
    6%
  • Europe Developed
    2%
  • Asia Developed
    1%
  • Japan
    1%

The geographic allocation is heavily skewed towards North America (90%), with minimal exposure to emerging markets and other developed regions. This concentration benefits from the robust performance of the U.S. market but limits global diversification. Expanding into other geographic areas could provide additional growth avenues and risk mitigation.

Market capitalization Info

  • Mega-cap
    61%
  • Large-cap
    26%
  • Mid-cap
    10%
  • Small-cap
    2%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown, with a dominance in mega (61%) and big (26%) cap stocks, aligns with its growth and stability goals. These companies often offer more resilience during market fluctuations than their smaller counterparts. However, including more medium to small cap stocks could introduce higher growth potential, albeit with increased risk.

Redundant positions Info

  • Vanguard S&P 500 ETF
    SPDR® Portfolio S&P 500 Growth ETF
    Vanguard Growth Index Fund ETF Shares
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation among certain ETFs and individual stocks, particularly within the technology sector, suggests redundancy and a potential overconcentration in similar assets. This limits the effectiveness of diversification, as these assets are likely to move in tandem during market shifts, amplifying risk instead of spreading it.

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 its assets, particularly within the ETFs that overlap significantly in holdings. Reducing exposure to redundant assets can enhance diversification benefits without sacrificing growth potential. This step is crucial for improving the portfolio's risk-return profile, aiming for an optimal balance on the Efficient Frontier, where each unit of risk is matched with maximum possible return.

Dividends Info

  • Apple Inc 0.50%
  • Broadcom Inc 0.80%
  • Delta Air Lines Inc 0.80%
  • Alphabet Inc Class A 0.40%
  • Meta Platforms Inc. 0.30%
  • VanEck Semiconductor ETF 0.40%
  • SPDR® Portfolio S&P 500 Growth ETF 0.60%
  • Taiwan Semiconductor Manufacturing 1.10%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 0.77%

The portfolio's overall dividend yield of 0.77% reflects its growth orientation, as growth stocks typically reinvest earnings rather than pay high dividends. While dividends contribute to total return, in a growth-focused portfolio like this, they are not the primary goal. Investors prioritizing income might consider increasing exposure to higher-yielding assets.

Ongoing product costs Info

  • VanEck Semiconductor ETF 0.35%
  • SPDR® Portfolio S&P 500 Growth ETF 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.03%

The portfolio's costs are relatively low, with a Total Expense Ratio (TER) of 0.03%. This efficiency is commendable, as lower costs directly translate to better net returns over time. The selection of low-cost ETFs is a strategic choice that supports long-term growth by minimizing the drag on performance.

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