This portfolio has only about 4 months of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.

Moderately Diversified Growth Portfolio with High Technology and Communication Services Exposure

Report created on Jul 31, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio consists of eight positions, with a significant emphasis on ETFs and individual stocks. The largest holdings are Vanguard S&P 500 ETF and Unity Software Inc, making up over 40% of the portfolio. This mix offers exposure to a broad market index and specific growth-oriented companies. The presence of both ETFs and individual stocks provides a balance between diversification and targeted growth opportunities. However, the concentration in a few large positions could increase risk during market downturns.

Growth Info

Historically, the portfolio has performed exceptionally well, with a Compound Annual Growth Rate (CAGR) of 23.19%. This impressive growth rate indicates strong past performance, likely driven by the high allocation to technology and communication services sectors. However, the maximum drawdown of -7.12% suggests that the portfolio can experience significant short-term losses. This volatility is typical for growth-oriented portfolios and should be considered when evaluating risk tolerance.

Projection Info

Using a Monte Carlo simulation with 1,000 iterations, the portfolio's future performance was projected. This simulation uses random sampling to model potential future returns. The median (50th percentile) projection shows a substantial potential growth to $3,830.69, while the 5th percentile indicates a worst-case scenario of 57.59% return. The high annualized return of 47.26% across simulations suggests robust growth potential, but the wide range of outcomes underscores the inherent uncertainty and risk.

Asset classes Info

  • Stocks
    100%

The portfolio is heavily skewed towards stocks, with 99.90% in equities and a negligible 0.10% in cash. This allocation aligns with a growth-oriented strategy but leaves the portfolio vulnerable to market volatility. A more balanced approach could include bonds or other fixed-income securities to mitigate risk. Diversifying into different asset classes can provide stability and reduce overall portfolio risk, especially during market downturns.

Sectors Info

  • Telecommunications
    43%
  • Technology
    28%
  • Financials
    6%
  • Health Care
    5%
  • Consumer Discretionary
    5%
  • Industrials
    4%
  • Consumer Staples
    3%
  • Energy
    2%
  • Real Estate
    2%
  • Basic Materials
    1%
  • Utilities
    1%

Sector allocation reveals a heavy concentration in Communication Services (43.27%) and Technology (27.69%). While these sectors have driven significant growth, they also introduce sector-specific risks. Underperformance in these areas could heavily impact the portfolio. A more balanced sector allocation could enhance diversification and reduce sector-specific risks. Including sectors like healthcare, consumer cyclicals, and industrials can offer more stability and potential growth from various economic segments.

Regions Info

  • North America
    92%
  • No data
    8%

Geographically, the portfolio is overwhelmingly invested in North America (92.17%), with minimal exposure to other regions. This concentration exposes the portfolio to regional economic and political risks. Diversifying geographically can provide exposure to growth opportunities in other markets and reduce dependence on the North American economy. Including assets from Europe, Asia, and emerging markets can enhance diversification and potentially improve returns.

Dividends Info

  • Meta Platforms Inc. 0.20%
  • SPDR® S&P 600 Small Cap Value ETF 2.20%
  • TKO Group Holdings Inc. 3.50%
  • Vanguard S&P 500 ETF 1.30%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.40%
  • Weighted yield (per year) 1.11%

The portfolio's dividend yield is not provided, but given the high allocation to growth stocks, it is likely low. Growth stocks typically reinvest earnings to fuel expansion rather than paying dividends. For investors seeking income, incorporating dividend-paying stocks or ETFs could provide regular cash flow. Balancing growth and income-generating assets can cater to both capital appreciation and income needs.

Ongoing product costs Info

  • SPDR® S&P 600 Small Cap Value ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.02%

The portfolio's costs are relatively low, with total expense ratios (TER) for ETFs ranging from 0.03% to 0.15%. Low costs are crucial for maximizing net returns over time. Keeping expense ratios low ensures that more of the portfolio's returns are retained by the investor. Continuously monitoring and minimizing investment costs can significantly enhance long-term performance.

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