Growth-focused portfolio with high tech exposure and low diversification

Report created on Aug 5, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is heavily weighted towards technology, with significant allocations in the Schwab U.S. Dividend Equity ETF, Vanguard S&P 500 ETF, Vanguard Information Technology Index Fund ETF Shares, and VanEck Semiconductor ETF. This composition reflects a strong growth orientation but exhibits low diversity across sectors and asset classes, focusing primarily on stocks within a few sectors. The emphasis on technology and large-cap stocks suggests an aggressive growth strategy, albeit with increased volatility and sector-specific risks.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 17.14%, with a maximum drawdown of -32.62%. These figures indicate robust growth but also highlight potential volatility and risk, as evidenced by the significant drawdown. The days contributing to 90% of returns being concentrated in just 38 days further underscores the portfolio's high performance variance, driven by market sentiment and specific sector movements.

Projection Info

Using Monte Carlo simulation, which projects future performance based on historical data and random variables, the portfolio shows a wide range of outcomes. The median projection suggests a significant potential for growth (1,085.7% increase), with a high probability of positive returns (997 out of 1,000 simulations). However, it's crucial to note that such simulations are inherently uncertain and depend heavily on past performance, which is not always indicative of future results.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, making it highly susceptible to market volatility. While stocks are known for their growth potential, the absence of other asset classes such as bonds or real estate limits opportunities for risk mitigation through diversification. This all-equity strategy aligns with a high-growth, high-risk investment approach but may not suit all investors, particularly those with a lower risk tolerance or nearing retirement.

Sectors Info

  • Technology
    48%
  • Health Care
    8%
  • Consumer Staples
    8%
  • Financials
    8%
  • Energy
    7%
  • Consumer Discretionary
    7%
  • Industrials
    6%
  • Telecommunications
    5%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

With 48% of the portfolio in technology, followed by smaller allocations in healthcare, consumer defensive, and financial services, the sector allocation underscores a bet on tech-driven growth. While technology has been a strong performer, this concentration increases vulnerability to sector-specific downturns. Diversifying across a broader range of sectors could help mitigate this risk while still capturing growth opportunities in other areas.

Regions Info

  • North America
    98%
  • Asia Developed
    1%
  • Europe Developed
    1%

The geographic allocation is heavily skewed towards North America (98%), with minimal exposure to developed markets in Asia and Europe. This concentration in the U.S. market leverages the growth potential of the world's largest economy but also exposes the portfolio to regional economic and political risks. Expanding geographic diversification could reduce such risks and tap into growth opportunities in other developed and emerging markets.

Market capitalization Info

  • Large-cap
    41%
  • Mega-cap
    33%
  • Mid-cap
    20%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's focus on big (41%) and mega-cap (33%) stocks, with some exposure to medium, small, and micro-caps, suggests a bias towards stability and growth offered by large companies. However, the limited exposure to smaller companies may miss out on higher growth potential these entities can offer, albeit with increased risk. Adjusting the market cap distribution could enhance growth prospects 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.

The current allocation suggests room for optimization towards achieving a better risk-return balance. Utilizing the Efficient Frontier concept could identify a mix of assets that maximizes returns for a given level of risk. While the portfolio shows strong growth potential, rebalancing towards a more diversified asset mix could enhance risk-adjusted returns, potentially offering a smoother growth trajectory.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.90%
  • VanEck Semiconductor ETF 0.40%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.84%

The portfolio yields a total dividend of 1.84%, driven by the Schwab U.S. Dividend Equity ETF's higher yield. While dividends contribute to the portfolio's total return, the primary focus remains on capital appreciation given the growth orientation. Investors seeking regular income might consider increasing allocations to higher-yielding assets, although this may come at the expense of growth potential.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.09%

With a total expense ratio (TER) of 0.09%, the portfolio benefits from relatively low costs, which is advantageous for long-term growth. Keeping costs low is crucial in maximizing returns, especially in growth-focused portfolios where the compound effect of high fees can significantly impact net gains over time.

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