A growth-focused portfolio with heavy tech exposure and limited international diversification

Report created on Jul 20, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards technology stocks and ETFs that track the S&P 500, with significant positions in NVIDIA Corporation, Alphabet Inc, and Microsoft Corporation. The dual investment in both the Vanguard and SPDR S&P 500 ETFs indicates a strong preference for broad market exposure, albeit with some redundancy. The inclusion of a small percentage in emerging markets and specific high-growth companies like Rocket Lab USA Inc. suggests an attempt at diversification, though the portfolio remains predominantly US-centric.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 23.15% and a maximum drawdown of -34.59%, the portfolio has demonstrated robust growth but not without significant volatility. The days contributing most to returns are relatively few, highlighting the portfolio's reliance on sharp, positive market movements. This performance, while impressive, underscores the high risk associated with the portfolio's growth strategy.

Projection Info

Monte Carlo simulations suggest a wide range of outcomes for the portfolio, with a median increase of 1,176.9% indicating strong potential for growth. However, the significant spread between the 5th and 67th percentiles highlights the uncertainty and risk involved. While the majority of simulations predict positive returns, the variability underscores the need for a well-considered risk management strategy.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, lacking exposure to other asset classes such as bonds or real estate. This singular focus on equities, particularly within technology and large-cap companies, amplifies both potential returns and volatility. Diversifying across different asset classes could provide a buffer during market downturns.

Sectors Info

  • Technology
    41%
  • Telecommunications
    13%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Financials
    8%
  • Industrials
    7%
  • Consumer Staples
    3%
  • Energy
    2%
  • Utilities
    1%
  • Basic Materials
    1%
  • Real Estate
    1%

The technology sector dominates the portfolio, comprising 41% of its allocation, followed by communication services and consumer cyclicals. This concentration in high-growth sectors contributes to the portfolio's strong performance but also increases its susceptibility to sector-specific risks. Diversifying into more defensive sectors could reduce volatility.

Regions Info

  • North America
    92%
  • Asia Emerging
    5%
  • Asia Developed
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

With 92% of assets allocated to North America, primarily the United States, the portfolio's geographic diversification is limited. The small allocation to emerging markets offers some international exposure, but the portfolio could benefit from a greater presence in developed and emerging markets outside of North America to mitigate regional risks.

Market capitalization Info

  • Mega-cap
    68%
  • Large-cap
    21%
  • Mid-cap
    10%
  • Small-cap
    1%

The portfolio's focus on mega and big-cap companies, accounting for 89% of its allocation, supports stability and growth potential. However, the minimal exposure to small and micro-cap stocks limits opportunities for outsized gains from smaller companies. Increasing diversification across market capitalizations could enhance returns and reduce risk.

Redundant positions Info

  • SPDR S&P 500 ETF Trust
    Vanguard S&P 500 ETF
    High correlation

The high correlation between the Vanguard and SPDR S&P 500 ETFs indicates redundancy, as both track the same index. This overlap does not contribute to diversification and instead concentrates risk. Reducing exposure to one of these ETFs could free up capital for investments that offer genuine diversification benefits.

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 shows potential for optimization by reducing overlap and increasing diversification across asset classes, sectors, and geographies. Utilizing the Efficient Frontier could identify an allocation that offers the best possible risk-return ratio, enhancing the portfolio's performance potential without necessarily increasing risk.

Dividends Info

  • Apple Inc 0.50%
  • Alphabet Inc Class A 0.40%
  • Microsoft Corporation 0.60%
  • SPDR S&P 500 ETF Trust 0.90%
  • UnitedHealth Group Incorporated 3.00%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 0.98%

The portfolio's dividend yield is relatively low, reflecting its growth orientation. However, dividends contribute to total return and provide income, which can be particularly valuable during market downturns. Considering investments with higher dividend yields could offer a more balanced approach to growth and income.

Ongoing product costs Info

  • SPDR S&P 500 ETF Trust 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.03%

The portfolio's costs are low, with the Total Expense Ratio (TER) averaging 0.03%, which is favorable for long-term growth. Keeping costs minimal is crucial for maximizing returns, and the portfolio's focus on low-cost ETFs aligns well with this principle.

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