A growth-focused portfolio with a strong tilt towards technology and momentum stocks

Report created on Sep 10, 2025

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 is best suited for an investor with a high risk tolerance and a long-term investment horizon, aiming for substantial growth. The investor should be comfortable with significant market fluctuations and the concentration in technology and momentum stocks. It's tailored for those who prioritize capital appreciation over income and are willing to accept higher volatility for the potential of higher returns.

Positions

This portfolio is heavily concentrated in technology and momentum stocks, with a significant 50% allocation to the Invesco S&P 500® Momentum ETF and 30% in the Fidelity® MSCI Information Technology Index ETF. The remaining 20% is invested in the Fidelity® High Dividend ETF. Such a composition indicates a growth-oriented strategy, favoring sectors expected to outperform the broader market. However, this focus brings a low diversification score, as it is heavily weighted towards specific sectors and lacks exposure to a broader range of asset classes.

Growth Info

Historically, this portfolio has demonstrated a high Compound Annual Growth Rate (CAGR) of 21.76%, with a significant max drawdown of -32.79%. This performance suggests a high-risk, high-reward profile, underscored by the fact that a large portion of returns came from a limited number of days. Such volatility and concentration of returns are characteristic of growth-focused portfolios, particularly those heavily invested in technology and momentum stocks.

Projection Info

Monte Carlo simulations, running 1,000 scenarios, suggest a wide range of outcomes for this portfolio. With a 5th percentile outcome at 288.9% growth and a median (50th percentile) at 1,355.0%, the projections indicate potential for substantial growth. However, the wide range between percentiles highlights the uncertainty and risk involved. While 999 simulations resulted in positive returns, the reliance on historical data to project future performance has its limitations and cannot guarantee these outcomes.

Asset classes Info

  • Stocks
    100%

The portfolio is fully invested in stocks, with no allocation to other asset classes such as bonds or real estate. This singular focus on equities enhances its growth potential but also increases its risk, particularly in volatile market conditions. Diversification across different asset classes can provide a buffer against market downturns, suggesting a potential area for improvement in this portfolio's composition.

Sectors Info

  • Technology
    47%
  • Financials
    14%
  • Consumer Discretionary
    9%
  • Telecommunications
    8%
  • Consumer Staples
    7%
  • Industrials
    5%
  • Utilities
    3%
  • Real Estate
    3%
  • Energy
    3%
  • Health Care
    2%

The sector allocation further emphasizes the portfolio's growth orientation, with 47% in technology. Other significant allocations include financial services and consumer cyclicals. This sectoral distribution aligns with the portfolio's aim for high growth but also concentrates risk in specific market segments. Diversifying across a broader range of sectors could mitigate sector-specific risks.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

Geographically, the portfolio is almost entirely invested in North America (99%), with minimal exposure to developed Europe and no exposure to emerging markets or other regions. This geographic concentration may limit potential gains from global economic growth and diversification benefits offered by international markets.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    33%
  • Mid-cap
    14%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown reveals a preference for mega (48%) and big (33%) cap stocks, with lesser exposure to medium, small, and micro-cap stocks. This bias towards larger companies is consistent with its growth and momentum strategy but may miss opportunities in smaller companies that could offer higher 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.

Sharpe ratios in this chart use the active CMA risk-free rate of 2.00% annualized.

Click on the colored dots to explore allocations.

Considering the portfolio's current allocation, optimizing for the Efficient Frontier could enhance the risk-return profile. However, this optimization is based on historical data and assumes the current asset allocation. Shifting towards a more diversified mix could potentially offer a better balance of risk and return, aligning more closely with the Efficient Frontier concept, which seeks the highest expected return for a given level of risk.

Dividends Info

  • Fidelity® High Dividend ETF 3.00%
  • Fidelity® MSCI Information Technology Index ETF 0.40%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Weighted yield (per year) 1.02%

The overall dividend yield of the portfolio is 1.02%, with the highest yield coming from the Fidelity® High Dividend ETF at 3.00%. While dividends contribute to the portfolio's total return, the primary focus remains on capital appreciation through growth stocks, consistent with the portfolio's growth-oriented strategy.

Ongoing product costs Info

  • Fidelity® High Dividend ETF 0.15%
  • Fidelity® MSCI Information Technology Index ETF 0.08%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.12%

The portfolio's total expense ratio (TER) is relatively low at 0.12%, which is beneficial for long-term performance as lower costs translate to higher net returns for investors. Keeping costs low is crucial, especially in growth-focused portfolios where the compounding effect can significantly impact overall returns.

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