A high-growth portfolio with a tech-heavy tilt and an emphasis on US markets

Report created on May 8, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

This portfolio is characterized by a strong focus on technology and US markets, with significant allocations in ETFs that track major indices and specific sectors. The inclusion of individual stocks like Take-Two Interactive Software Inc and NVIDIA Corporation further accentuates the portfolio's growth orientation. However, its classification as 'Single-Focused' with a low diversification score indicates a concentrated risk profile, especially considering the high correlation among certain assets.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 26.61% and a maximum drawdown of -49.39%, the portfolio has demonstrated substantial growth potential, albeit with significant volatility. The days contributing most to returns highlight the portfolio's susceptibility to short-term market movements, underscoring the importance of understanding the inherent risks of such a growth-focused strategy.

Projection Info

Monte Carlo simulations, projecting a wide range of potential outcomes, suggest a robust growth trajectory with a median increase of over 5,000%. However, the substantial spread between the 5th and 67th percentiles underscores the high level of uncertainty and risk. These projections, while informative, are based on historical data and cannot guarantee future performance.

Asset classes Info

  • Stocks
    98%
  • Cash
    2%

The portfolio's asset allocation is heavily weighted towards stocks (98%), with a minimal cash reserve (2%). This allocation is indicative of a high-risk, high-reward strategy, aligning with the portfolio's growth profile. The lack of diversification across asset classes could amplify volatility and risk, particularly in market downturns.

Sectors Info

  • Technology
    34%
  • Telecommunications
    23%
  • Industrials
    15%
  • Consumer Discretionary
    8%
  • Financials
    7%
  • Health Care
    5%
  • Consumer Staples
    4%
  • Energy
    1%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

Sector allocation is predominantly in technology, communication services, and industrials, reflecting a bet on these high-growth areas. However, this concentration increases susceptibility to sector-specific risks. Diversifying across a broader range of sectors could mitigate some of this risk while still allowing for significant growth potential.

Regions Info

  • North America
    98%
  • Asia Developed
    1%
  • Europe Developed
    1%

The portfolio's geographic exposure is overwhelmingly North American (98%), with minimal allocations to developed markets in Asia and Europe. This concentration in the US market, while beneficial during periods of strong domestic performance, limits exposure to potential growth in other regions and increases vulnerability to US-specific economic downturns.

Market capitalization Info

  • Large-cap
    47%
  • Mega-cap
    37%
  • Mid-cap
    12%
  • Small-cap
    2%

The focus on big and mega-cap stocks (84% combined) suggests a preference for established, large-scale companies, which typically offer stability and solid growth prospects. However, the limited exposure to medium, small, and micro-cap stocks restricts potential for outsized gains from smaller, high-growth companies.

Redundant positions Info

  • ProShares UltraPro QQQ
    Invesco QQQ Trust
    High correlation

The high correlation between assets like the ProShares UltraPro QQQ and Invesco QQQ Trust indicates overlapping investment strategies that may not provide the intended diversification benefits. Reducing exposure to highly correlated assets could enhance the portfolio's risk-adjusted returns by minimizing redundant risk exposure.

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 the portfolio involves addressing the high correlation among certain assets. Removing or reducing exposure to overlapping ETFs can enhance diversification without significantly altering the portfolio's growth trajectory. This step is essential in improving the risk-return profile, moving the portfolio closer to the Efficient Frontier.

Dividends Info

  • iShares U.S. Aerospace & Defense ETF 0.80%
  • Invesco QQQ Trust 0.60%
  • VanEck Semiconductor ETF 0.50%
  • Invesco S&P 500® Momentum ETF 0.50%
  • ProShares UltraPro QQQ 1.70%
  • Vanguard S&P 500 ETF 1.40%
  • Weighted yield (per year) 0.78%

The portfolio's overall dividend yield of 0.78% contributes to its total return, albeit to a lesser extent than capital appreciation. In a growth-focused strategy, dividends play a secondary role to the potential for price appreciation. However, dividends can offer a source of income and potential reinvestment opportunities.

Ongoing product costs Info

  • iShares U.S. Aerospace & Defense ETF 0.40%
  • Invesco QQQ Trust 0.20%
  • VanEck Semiconductor ETF 0.35%
  • Invesco S&P 500® Momentum ETF 0.13%
  • ProShares UltraPro QQQ 0.88%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.18%

The portfolio's total expense ratio (TER) of 0.18% is relatively low, which is beneficial for long-term growth by minimizing the drag on performance due to fees. Keeping costs low is crucial in maximizing net returns, especially in a growth-oriented portfolio where compound growth plays a significant role.

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