A global stock-centric portfolio with a strong technology tilt and low diversification

Report created on Sep 2, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily weighted towards equities, with 60% in a global stock index and 40% in US-focused ETFs. The heavy allocation towards equities, particularly with significant positions in both the NASDAQ 100 and S&P 500 ETFs, indicates a growth-oriented strategy. However, this composition also reflects low diversification, as evidenced by the concentration in stock asset classes and significant overlap between the holdings of these ETFs, particularly in the technology sector.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 14.19% and a maximum drawdown of -27.48%, this portfolio has demonstrated strong growth potential but also significant volatility. The days contributing most to returns are relatively few, highlighting the impact of high-performing days on overall performance. This performance, while impressive, underscores the portfolio's risk level, aligned with its balanced risk classification.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 565.5% in portfolio value, suggesting robust growth potential. However, the wide spread between the 5th and 67th percentiles (105.6% to 801.2%) indicates considerable uncertainty. These projections, based on historical data, should be viewed with caution, as past performance is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's allocation is almost entirely in stocks (99%), with a minimal cash reserve (1%). This stock-heavy approach is geared towards growth but comes with higher volatility and risk. The lack of diversification across different asset classes, such as bonds or real estate, can lead to increased susceptibility to market fluctuations.

Sectors Info

  • Technology
    33%
  • Financials
    13%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Industrials
    9%
  • Health Care
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

The technology sector dominates the portfolio at 33%, followed by financial services and consumer cyclicals. This sector concentration, especially in technology, can lead to higher volatility, as tech stocks are often more sensitive to market changes. While this can offer higher growth potential, it also increases risk, particularly in market downturns.

Regions Info

  • North America
    39%

The geographic distribution is heavily skewed towards North America (39%), with no direct exposure to developed Europe, Latin America, or Asia. This geographic concentration in developed markets, particularly the US, limits global diversification and increases susceptibility to regional economic shifts.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    32%
  • Mid-cap
    17%
  • Small-cap
    3%

The portfolio's market cap allocation leans heavily towards mega (46%) and big (32%) cap stocks, with lesser exposure to medium and small caps. This bias towards larger companies may contribute to stability but can also limit growth potential from smaller, more agile companies.

Redundant positions Info

  • Vanguard Total World Stock Index Fund ETF Shares
    Vanguard S&P 500 ETF
    High correlation

The high correlation between the Vanguard Total World Stock Index Fund ETF Shares and the Vanguard S&P 500 ETF suggests redundancy, limiting diversification benefits. Diversification across uncorrelated assets is crucial for reducing risk without necessarily sacrificing returns.

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.

Optimizing this portfolio involves addressing the high correlation between certain assets to enhance diversification. By reducing overlap and exploring opportunities in uncorrelated assets or different asset classes, the portfolio can achieve a more favorable risk-return profile, moving closer to the Efficient Frontier.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 1.36%

The dividend yields, ranging from 0.50% to 1.70%, contribute to the portfolio's total yield of 1.36%. While not the primary focus, these dividends provide a steady income stream, which can be particularly beneficial during market downturns or for investors seeking regular income.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.08%

The total expense ratio (TER) of 0.08% is impressively low, enhancing long-term return potential by minimizing costs. Keeping investment costs low is a vital component of successful long-term investing, allowing more of the portfolio's returns to compound over time.

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