High-growth tech-focused portfolio with significant exposure to technology sector

Report created on Aug 12, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily weighted towards the technology sector, with 90% invested in the Vanguard Information Technology Index Fund ETF Shares and 10% in Meta Platforms Inc. This composition indicates a strong focus on growth, primarily through exposure to large-cap technology companies. The portfolio's diversification is low, concentrating risk in the tech sector and North American markets. While this focus has historically offered high returns, it also increases susceptibility to sector-specific downturns.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 23.30%, the portfolio has demonstrated impressive growth. This performance is indicative of the tech sector's recent boom but comes with high volatility, as evidenced by a maximum drawdown of -37.38%. It's crucial to note that days contributing to 90% of returns were limited to 42, highlighting the portfolio's reliance on short, significant growth spurts, which can be unpredictable.

Projection Info

The Monte Carlo simulation, based on 1,000 scenarios, suggests a wide range of potential outcomes, with the 50th percentile projecting an increase of 1,776.6%. However, it's important to remember that such simulations use historical data, which doesn't guarantee future performance. The high annualized return expectation of 28.55% reflects the portfolio's aggressive growth stance but also underscores its high-risk profile.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is almost entirely in stocks (99%), with a minimal cash holding (1%). This allocation aligns with its growth profile but lacks diversification across asset classes, which could mitigate risk during market downturns. Incorporating bonds or real estate could provide more stability without significantly compromising growth potential.

Sectors Info

  • Technology
    89%
  • Telecommunications
    10%

The technology sector dominates the portfolio (89%), with a smaller allocation to communication services (10%). This sectoral concentration enhances growth prospects but also increases vulnerability to sector-specific risks, such as regulatory changes or technological disruptions. Broadening the sectoral spread could reduce volatility without diluting the growth focus.

Regions Info

  • North America
    99%

Geographic exposure is almost exclusively North American (99%), which limits global diversification benefits. While the U.S. tech sector has been a strong performer, emerging markets and developed international markets could offer growth opportunities and risk mitigation through geographic diversification.

Market capitalization Info

  • Mega-cap
    57%
  • Large-cap
    22%
  • Mid-cap
    11%
  • Small-cap
    7%
  • Micro-cap
    3%

The portfolio's market capitalization breakdown shows a bias towards mega (57%) and big (22%) cap stocks, which is typical for growth-focused portfolios seeking stability and growth in established companies. However, including more medium, small, or micro-cap stocks could enhance potential returns, albeit with increased risk.

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.

Considering the portfolio's current composition and performance, there's an opportunity to optimize its risk-return profile. While it's already positioned towards the higher end of the risk spectrum, diversifying across different sectors, asset classes, and geographies could achieve a more efficient frontier, enhancing returns for the same level of risk.

Dividends Info

  • Meta Platforms Inc. 0.30%
  • Vanguard Information Technology Index Fund ETF Shares 0.40%
  • Weighted yield (per year) 0.39%

The dividend yield of the portfolio is relatively low, with Meta Platforms Inc. at 0.30% and the Vanguard ETF at 0.40%, resulting in a total yield of 0.39%. This is consistent with growth-focused investments, which typically reinvest earnings rather than distribute them as dividends. Investors seeking income in addition to growth might consider adding assets with higher dividend yields.

Ongoing product costs Info

  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Weighted costs total (per year) 0.09%

The total expense ratio (TER) of 0.09% is impressively low, which is beneficial for long-term growth as it minimizes the drag on investment returns. Keeping costs low is crucial, especially in a high-growth strategy where the compound effect of costs can significantly impact net returns over time.

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