A growth-focused portfolio with a strong technology tilt and moderate global diversification

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio suits an investor with a high risk tolerance seeking growth and willing to withstand volatility. With a focus on equities, it's ideal for those aiming to capitalize on potential high returns over a long-term horizon. The significant allocation to U.S. markets reflects confidence in domestic growth, while international exposure offers diversification. This portfolio is suitable for individuals looking to build wealth and are comfortable with market fluctuations. It prioritizes capital appreciation, making it a good fit for those who can tolerate short-term losses for potential long-term gains.

Positions

  • Invesco QQQ Trust
    QQQ - US46090E1038
    43.00%
  • Vanguard Total Stock Market Index Fund ETF Shares
    VTI - US9229087690
    33.00%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares
    VEA - US9219438580
    15.00%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares
    VWO - US9220428588
    9.00%

The portfolio is heavily weighted towards equities, with ETFs making up 100% of the allocation. The Invesco QQQ Trust holds 43%, followed by the Vanguard Total Stock Market Index Fund at 33%. This composition leans towards growth, with a significant portion in the tech-heavy QQQ, which may lead to higher volatility. While broadly diversified across sectors and geographies, the portfolio is heavily concentrated in U.S. equities. This structure is typical for growth-focused portfolios, aiming to capitalize on potential high returns. Consider diversifying further by including more international or alternative assets to mitigate risk and enhance stability.

Growth Info

The portfolio has demonstrated a strong historical performance, with a Compound Annual Growth Rate (CAGR) of 13.18%. This indicates robust growth over time, outperforming many benchmarks. However, it's important to note the portfolio's maximum drawdown of -31.31%, highlighting its vulnerability during market downturns. This level of volatility is common in growth-focused portfolios, which prioritize returns over stability. To manage risks, consider strategies like rebalancing or incorporating defensive assets. Remember, past performance doesn't guarantee future results, so maintaining a balanced approach is key.

Projection Info

Monte Carlo simulations provide a glimpse into potential future outcomes by analyzing historical data. For this portfolio, simulations suggest a median return of 239.5% and an optimistic scenario of 397% over the investment horizon. The simulations indicate a high probability of positive returns, with 950 out of 1,000 scenarios being profitable. While these projections are encouraging, they rely on historical trends and assumptions. It's crucial to remain vigilant and adaptable, as market conditions can change. Regularly reviewing and adjusting the portfolio can help align it with evolving goals and risk tolerances.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%
  • Other
    0%
  • No data
    0%

The portfolio is predominantly allocated to stocks, comprising 99% of the total assets. This allocation aligns with a growth-oriented strategy, which typically emphasizes equities for their potential high returns. However, this heavy reliance on stocks can increase volatility, especially during market downturns. The minimal cash allocation of 1% provides limited liquidity, which may not be sufficient during periods of market stress. Consider adding fixed-income or alternative assets to enhance diversification and reduce overall portfolio risk. Balancing growth with stability is key to long-term success.

Sectors Info

  • Technology
    35%
  • Consumer Discretionary
    12%
  • Telecommunications
    11%
  • Financials
    10%
  • Health Care
    8%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Basic Materials
    3%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%

With a 35% allocation to technology, the portfolio is heavily tilted towards this sector. While tech stocks have driven significant growth, they can also be more volatile, especially during interest rate hikes or market corrections. The remaining sectors, such as consumer cyclicals and financial services, offer some diversification. However, the concentration in tech may expose the portfolio to sector-specific risks. To mitigate this, consider rebalancing by increasing exposure to underrepresented sectors like healthcare or utilities. A balanced sector allocation can enhance stability and resilience against market fluctuations.

Regions Info

  • North America
    76%
  • Europe Developed
    9%
  • Asia Emerging
    6%
  • Japan
    3%
  • Asia Developed
    3%
  • Africa/Middle East
    1%
  • Australasia
    1%
  • Latin America
    1%
  • Europe Emerging
    0%

The portfolio's geographic allocation is heavily skewed towards North America, comprising 76% of the total. While this reflects the strength of U.S. markets, it limits exposure to international opportunities. The remaining allocation is spread across Europe, Asia, and other regions, providing some diversification. However, the underweight in emerging markets may miss out on potential growth. Consider increasing exposure to regions with high growth potential, such as Asia or Latin America, to enhance diversification and reduce reliance on U.S. markets. A balanced geographic allocation can help manage risks and capitalize on global opportunities.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    32%
  • Mid-cap
    16%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio predominantly consists of large-cap stocks, with 47% in mega and 32% in big companies. This allocation provides stability and lower volatility, as large-cap stocks are typically more established and resilient. However, the limited exposure to small and micro-cap stocks may restrict growth potential. These smaller companies often offer higher returns but come with increased risk. Consider diversifying across market capitalizations to balance risk and reward. Including a mix of small and medium-cap stocks can enhance growth potential while maintaining a solid foundation in large-cap equities.

Dividends Info

  • Invesco QQQ Trust 0.50%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 3.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.40%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 3.20%
  • Weighted yield (per year) 1.43%

The portfolio's overall dividend yield is 1.43%, with significant contributions from the Vanguard FTSE Developed and Emerging Markets ETFs. While not the primary focus, dividends can provide a steady income stream and enhance total returns. Growth-oriented portfolios often prioritize capital appreciation over income, but dividends can offer stability during volatile periods. Consider balancing growth and income by exploring dividend-focused investments or increasing exposure to sectors with higher yields. This can provide a cushion against market fluctuations and enhance long-term returns.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.11%

The portfolio's total expense ratio (TER) is 0.11%, which is impressively low and supports better long-term performance. Low costs are crucial for maximizing returns, as they compound over time. The Vanguard ETFs contribute to this cost efficiency, with expense ratios ranging from 0.03% to 0.08%. Keeping costs low is a key strength of this portfolio, allowing more of your investment to work for you. Regularly review and compare expense ratios to ensure continued cost-effectiveness. Maintaining low costs is essential for achieving optimal returns and enhancing overall portfolio performance.

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.

The portfolio can potentially be optimized using the Efficient Frontier, which identifies the best risk-return ratio for a given set of assets. This optimization focuses on reallocating existing assets to achieve the highest possible return for a specific level of risk. While the current allocation is well-aligned with growth objectives, exploring different asset combinations could enhance efficiency. Consider adjusting weightings to improve the portfolio's risk-return profile, while maintaining alignment with your investment goals. Regularly reviewing and optimizing the portfolio can ensure it remains on track and adapts to changing market conditions.

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