Balanced growth-focused portfolio with a strong tilt towards technology and U.S. equities

Report created on Jul 6, 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 heavily weighted towards U.S. equities, particularly in the technology sector, with significant allocations in large-cap ETFs such as the Vanguard S&P 500 ETF and Invesco NASDAQ 100 ETF. This composition underscores a growth-oriented strategy, leveraging the robust performance of the tech sector. However, it's moderately diversified with a geographical focus on North America and a limited international presence, primarily in developed markets.

Growth Info

Historically, this portfolio has demonstrated a compelling Compound Annual Growth Rate (CAGR) of 16.61%, with a notable maximum drawdown of -26.57%. This performance is indicative of high growth potential but also underscores the risk associated with a tech-heavy and geographically concentrated portfolio. The days contributing to 90% of returns being so few suggest significant returns are concentrated in short, volatile bursts.

Projection Info

Monte Carlo simulations, with 1,000 iterations, project a wide range of potential outcomes, indicating robust growth prospects with a median increase of 742.9%. However, the wide spread between the 5th and 67th percentiles (145.1% to 1,134.5%) highlights the portfolio's volatility and risk. Such projections are useful for understanding potential variability but should be approached with caution, as past performance is not indicative of future results.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no diversification into bonds, cash, or other asset classes. This allocation maximizes growth potential but also increases volatility and risk, especially in market downturns. Diversifying across different asset classes can provide a buffer against stock market volatility and reduce overall portfolio risk.

Sectors Info

  • Technology
    36%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Telecommunications
    9%
  • Industrials
    9%
  • Health Care
    6%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    1%

Sector allocation is heavily skewed towards technology, constituting 36% of the portfolio. While the tech sector has historically delivered strong growth, this concentration increases susceptibility to sector-specific risks. Financial Services, Consumer Cyclicals, and other sectors provide some diversification, but the heavy tech emphasis dominates the portfolio's performance characteristics.

Regions Info

  • North America
    87%
  • Europe Developed
    7%
  • Japan
    3%
  • Australasia
    1%
  • Asia Developed
    1%

Geographic exposure is predominantly in North America (87%), with minimal allocations to Europe, Japan, and other developed markets. This concentration benefits from the strong performance of U.S. markets but lacks significant exposure to emerging markets and global diversification, potentially missing out on growth opportunities in other regions.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    28%
  • Mid-cap
    16%
  • Small-cap
    6%
  • Micro-cap
    4%

The portfolio's market capitalization breakdown shows a heavy tilt towards mega (46%) and big (28%) cap stocks, indicating a preference for large, established companies. While this can offer stability and lower volatility compared to smaller caps, it may also limit exposure to high-growth potential found in smaller companies.

Redundant positions Info

  • Vanguard Growth Index Fund ETF Shares
    Fidelity® MSCI Information Technology Index ETF
    Invesco NASDAQ 100 ETF
    Vanguard S&P 500 ETF
    High correlation

There is a high correlation among the Vanguard Growth Index Fund ETF Shares, Fidelity® MSCI Information Technology Index ETF, Invesco NASDAQ 100 ETF, and Vanguard S&P 500 ETF. This redundancy suggests that despite holding different funds, the portfolio's diversification benefits are limited, increasing risk during market downturns specifically affecting the tech sector or large-cap stocks.

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 could be optimized by addressing the high correlation among certain holdings, particularly within the tech sector and large-cap ETFs. Reducing overlap and introducing assets with low correlation can enhance diversification benefits, potentially improving the risk-return profile. Exploring opportunities in different sectors, asset classes, and geographic regions could further optimize performance.

Dividends Info

  • Avantis® International Small Cap Value ETF 3.80%
  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Fidelity® MSCI Information Technology Index ETF 0.40%
  • Invesco S&P International Developed Momentum ETF 2.00%
  • Invesco NASDAQ 100 ETF 0.50%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Growth Index Fund ETF Shares 0.50%
  • Weighted yield (per year) 1.19%

The portfolio's overall dividend yield is 1.19%, which is relatively low, reflecting the growth orientation of the holdings. While dividends contribute to total returns, the focus here is clearly on capital appreciation rather than income generation. This approach aligns with the portfolio's growth profile but may not suit those seeking regular income.

Ongoing product costs Info

  • Avantis® International Small Cap Value ETF 0.36%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Fidelity® MSCI Information Technology Index ETF 0.08%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco NASDAQ 100 ETF 0.15%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.11%

With a Total Expense Ratio (TER) of 0.11%, the portfolio benefits from relatively low costs, enhancing net returns. The low-cost structure is advantageous over the long term, as even small differences in fees can significantly impact compounded returns. This efficiency is a positive aspect of the portfolio's construction.

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