Growth-oriented portfolio with strong tech sector focus and moderate risk profile

Report created on Aug 5, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

This portfolio is heavily weighted towards equities, with a significant emphasis on the technology sector, represented by 65% of the total investment through two ETFs. The remaining 35% is split between broader market exposure and fixed income, aiming to balance growth potential with some level of risk mitigation. The high allocation in tech and large-cap stocks suggests an aggressive growth strategy, but the inclusion of bonds indicates a nod towards risk management. The diversification is primarily within the stock asset class, with limited exposure to other sectors or asset classes.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 17.58%, with a maximum drawdown of -31.19%. This performance indicates a strong growth trajectory, albeit with significant volatility. The days contributing to 90% of returns highlight the portfolio's susceptibility to short-term market movements, emphasizing the importance of a long-term investment horizon to mitigate the impact of volatility.

Projection Info

Monte Carlo simulations project a wide range of potential outcomes, with a median increase of 336.1%. These simulations, while useful for understanding potential volatility and outcomes, are based on historical data and cannot guarantee future performance. The high number of simulations with positive returns underscores the portfolio's strong growth potential but also highlights the necessity of being prepared for periods of downturn.

Asset classes Info

  • Stocks
    80%
  • Bonds
    20%

The asset allocation is 80% stocks and 20% bonds, which is typical for growth-oriented portfolios. This mix aims to capture the higher returns traditionally associated with equities while using bonds to provide stability and income, mitigating some of the volatility inherent in stock investments. However, the absence of alternative asset classes such as real estate or commodities may limit opportunities for further diversification.

Sectors Info

  • Technology
    48%
  • Consumer Discretionary
    7%
  • Telecommunications
    6%
  • Financials
    5%
  • Health Care
    5%
  • Industrials
    4%
  • Consumer Staples
    1%
  • Basic Materials
    1%
  • Real Estate
    1%
  • Energy
    1%

With 48% of the portfolio in technology, this sector's performance will heavily influence overall returns. While tech stocks have historically provided substantial growth, they can also be more volatile, especially in market downturns or during interest rate hikes. The limited exposure to other sectors like healthcare, financial services, and industrials suggests potential room for broader sector diversification to reduce risk.

Regions Info

  • North America
    80%

The geographic allocation is heavily skewed towards North America (80%), with no exposure to emerging or developed markets outside of this region. This concentration increases the portfolio's vulnerability to region-specific economic fluctuations and misses out on potential growth opportunities in other global markets.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    15%
  • Mid-cap
    12%
  • Small-cap
    9%
  • Micro-cap
    3%

The portfolio's market capitalization breakdown shows a preference for mega and large-cap stocks, which tend to be more stable and less volatile than smaller companies. However, this focus may limit potential returns from high-growth small and micro-cap stocks, suggesting an area for potential adjustment depending on the investor's risk tolerance and growth objectives.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Fidelity® MSCI Information Technology Index ETF
    High correlation

The high correlation between the Schwab U.S. Large-Cap Growth ETF and the Fidelity® MSCI Information Technology Index ETF indicates overlapping investments, reducing the benefits of diversification. Diversifying into non-correlated assets or sectors could improve the portfolio's risk-adjusted returns by reducing volatility without necessarily sacrificing growth potential.

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 portfolio's current asset allocation and high correlation among certain assets suggest room for optimization towards the Efficient Frontier. This could involve diversifying into less correlated assets or adjusting the balance between growth and value investments to achieve a better risk-return profile. Optimization should focus on reducing overlap and considering broader sectoral and geographic diversification.

Dividends Info

  • Fidelity® MSCI Information Technology Index ETF 0.40%
  • iShares iBonds Dec 2026 Term Corporate ETF 3.90%
  • iShares iBonds Dec 2026 Term Treasury ETF 3.70%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Extended Market Index Fund ETF Shares 1.10%
  • Weighted yield (per year) 1.18%

The portfolio's total dividend yield of 1.18% contributes to its overall returns, providing a stream of income in addition to potential capital gains. However, the focus on growth-oriented tech ETFs, which typically offer lower dividends, suggests that income is not the primary objective. Investors seeking higher income might consider reallocating a portion of the portfolio to higher-yielding assets.

Ongoing product costs Info

  • Fidelity® MSCI Information Technology Index ETF 0.08%
  • iShares iBonds Dec 2026 Term Corporate ETF 0.10%
  • iShares iBonds Dec 2026 Term Treasury ETF 0.07%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Extended Market Index Fund ETF Shares 0.06%
  • Weighted costs total (per year) 0.06%

With a total expense ratio (TER) of 0.06%, the portfolio benefits from relatively low costs, enhancing long-term returns by minimizing the drag on performance. This efficient cost structure is a strength, allowing more of the investment's returns to compound over time.

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