A growth-focused portfolio with a tech-heavy tilt and moderate geographic diversification

Report created on Mar 7, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is composed entirely of common stocks, with a significant tilt towards growth-oriented companies. NVIDIA Corporation leads with a 13.06% weighting, followed by Eli Lilly and Company at 12.34%, and Walmart Inc at 10.97%. The portfolio's structure leans heavily on a few high-performing stocks, which can drive significant returns but also increase risk. Compared to a typical benchmark, this allocation is concentrated, which may lead to higher volatility. Diversifying into additional asset classes like bonds or real estate could provide more stability and reduce overall risk, especially during market downturns.

Growth Info

Historically, the portfolio has delivered a remarkable CAGR of 35.88%, indicating strong growth over time. However, it has also experienced a maximum drawdown of -51.50%, highlighting potential volatility. This performance compares favorably to typical market benchmarks, suggesting that the portfolio's aggressive growth strategy has paid off. While past performance is not indicative of future results, the historical data suggests a high-risk, high-reward profile. Investors may want to consider their risk tolerance and whether they can withstand such drawdowns when deciding to maintain or adjust their portfolio composition.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential future outcomes, predict an annualized return of 41.36% for this portfolio. With 995 out of 1,000 simulations showing positive returns, the outlook appears promising. However, it's crucial to note that these projections are based on past data and cannot guarantee future performance. The 5th percentile projection shows a potential 266.4% increase, while the 67th percentile suggests a 9,757.3% gain, reflecting a wide range of possibilities. Investors should remain aware of the inherent uncertainties and consider rebalancing periodically to align with their evolving risk tolerance and financial goals.

Asset classes Info

  • Stocks
    100%

The portfolio is concentrated entirely in stocks, lacking exposure to other asset classes like bonds, real estate, or commodities. This singular focus on equities can drive growth but also increases vulnerability to market fluctuations. Compared to diversified benchmarks, this approach may result in higher volatility. To enhance diversification, incorporating a mix of asset classes could help mitigate risk and improve stability. Balancing stocks with fixed-income securities, for example, can provide a buffer during market downturns and create a more resilient investment strategy.

Sectors Info

  • Technology
    40%
  • Health Care
    19%
  • Financials
    16%
  • Consumer Staples
    11%
  • Consumer Discretionary
    9%
  • Telecommunications
    5%

The portfolio is heavily weighted towards the technology sector, comprising 40% of the total allocation. This concentration can lead to increased volatility, especially during periods of interest rate hikes or tech sector downturns. Healthcare and financial services also hold significant portions at 19% and 16%, respectively. While these sectors offer growth potential, their concentration may expose the portfolio to sector-specific risks. Diversifying into other sectors such as industrials or utilities could provide balance and reduce dependency on a few high-performing industries, aligning more closely with broader market benchmarks.

Regions Info

  • North America
    77%
  • Europe Developed
    9%
  • Asia Emerging
    6%
  • No data
    5%
  • Japan
    3%

Geographically, the portfolio is heavily concentrated in North America, with 77% of assets allocated there. This concentration limits exposure to international markets, potentially missing out on growth opportunities abroad. Europe Developed and Asia Emerging together make up 15% of the portfolio, offering some international diversification. However, the underrepresentation of emerging markets could be a missed opportunity for higher growth. Expanding geographic exposure to include more diverse regions, such as Latin America or Africa, may enhance diversification and provide a hedge against domestic market volatility.

Market capitalization Info

  • Mega-cap
    89%
  • Large-cap
    11%

The portfolio is predominantly composed of mega-cap stocks, accounting for 89% of the allocation, with the remaining 11% in big-cap stocks. This focus on large-cap companies offers stability and lower volatility but may limit growth potential compared to small or mid-cap stocks. Large-cap stocks are typically well-established and less volatile, providing a solid foundation for long-term growth. However, adding exposure to smaller companies could enhance growth prospects and diversification. Investors should weigh the benefits of stability against the potential for higher returns from smaller-cap investments.

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 can potentially be optimized along the Efficient Frontier, which represents the best possible risk-return ratio for a given set of assets. By adjusting the current allocation, investors can aim to achieve a more efficient balance between risk and return. This optimization focuses on maximizing returns for a given level of risk, rather than diversification alone. Investors should consider rebalancing their portfolio periodically to maintain alignment with the Efficient Frontier and ensure they are making the most of their investment strategy. This approach can enhance overall performance and support long-term financial goals.

Dividends Info

  • Apple Inc 0.40%
  • ASML Holding NV 0.70%
  • Alphabet Inc Class A 0.30%
  • JPMorgan Chase & Co 1.90%
  • Eli Lilly and Company 0.40%
  • Microsoft Corporation 0.60%
  • Novo Nordisk A/S 1.60%
  • Sony Group Corp 1.40%
  • Taiwan Semiconductor Manufacturing 1.30%
  • Visa Inc. Class A 0.60%
  • Walmart Inc 0.90%
  • Weighted yield (per year) 0.68%

The portfolio's dividend yield is relatively low at 0.68%, reflecting its focus on growth rather than income. While dividends can provide a steady income stream, growth-oriented portfolios often prioritize capital appreciation over dividend payouts. This strategy aligns with investors seeking long-term growth rather than immediate income. However, those looking for regular cash flow might consider increasing exposure to dividend-paying stocks or income-focused investments. Balancing growth and income can create a more comprehensive investment strategy, catering to different financial needs and goals.

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