Get this analysis for your own portfolio Paste your holdings — the first report is free and takes about a minute. Analyze mine

A tech-heavy high-growth portfolio with low diversification and strong historical performance

Report created on Jan 16, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification
Curious how your own portfolio scores? Same analysis, your holdings. First report free — no card needed. Analyze mine

Positions

The portfolio is equally divided among five ETFs, each holding a 20% stake. It heavily invests in technology and healthcare sectors. This composition indicates a focus on growth, but lacks diversification. Typically, a diversified portfolio might include a broader range of asset types, such as bonds or international equities. The current structure may benefit from additional asset classes to mitigate risk and enhance stability. Consider exploring alternative investments to balance this growth-centric approach.

Growth Info

The portfolio has shown impressive historical performance with a Compound Annual Growth Rate (CAGR) of 15.89%. This suggests strong growth potential, though it experienced a significant maximum drawdown of -31.17%. While past performance is not a guarantee of future results, understanding these trends helps assess the portfolio's volatility and resilience. To potentially reduce future drawdowns, consider diversifying into less correlated investments while maintaining growth objectives.

Projection Info

Using Monte Carlo simulations, which predict future performance based on historical data, the portfolio shows promising potential. The median outcome projects a 677.06% increase, with a 17.63% annualized return. However, simulations use past data, which may not account for future market changes. To improve future performance, consider adjustments that align with evolving market conditions, while being cautious of over-reliance on historical projections.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

This portfolio is heavily weighted in stocks, comprising over 99% of the total allocation, with a minimal cash component. While stock-heavy portfolios can offer high growth potential, they also introduce significant risk during market downturns. A balanced portfolio often includes bonds or other fixed-income securities to cushion against volatility. Consider incorporating a wider variety of asset classes to enhance stability and risk management.

Sectors Info

  • Technology
    43%
  • Health Care
    25%
  • Consumer Discretionary
    8%
  • Telecommunications
    7%
  • Financials
    5%
  • Industrials
    4%
  • Consumer Staples
    3%
  • Energy
    1%
  • Utilities
    1%
  • Basic Materials
    1%
  • Real Estate
    1%

The portfolio is predominantly invested in technology (43.29%) and healthcare (25.07%), with smaller allocations in other sectors. This concentration may lead to higher volatility, especially during sector-specific downturns. A more diversified sector allocation could mitigate such risks. Consider increasing exposure to underrepresented sectors to achieve a more balanced risk profile, potentially enhancing long-term stability.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

Geographically, the portfolio is highly concentrated in North America (99.10%), with negligible exposure to other regions. This lack of geographic diversification may increase vulnerability to regional economic downturns. A globally diversified portfolio can help spread risk and capture growth opportunities in different markets. Consider increasing exposure to international equities to improve geographic balance and potential returns.

Redundant positions Info

  • Vanguard Information Technology Index Fund ETF Shares
    Invesco QQQ Trust
    High correlation
  • SPDR S&P 500 ETF Trust
    Vanguard S&P 500 ETF
    High correlation

The portfolio includes highly correlated assets, notably within technology-focused ETFs. Correlated assets tend to move together, which may limit diversification benefits. During market downturns, this could amplify losses. To enhance diversification, consider replacing some correlated assets with those that have historically shown lower correlation, thereby potentially reducing overall portfolio 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.

Open the Portfolio Builder Reshape your holdings and watch every metric recalculate live. Try it

The portfolio could potentially be optimized using the Efficient Frontier concept, which seeks the best risk-return ratio. However, the presence of overlapping, correlated assets suggests limited diversification. Before optimization, consider removing or replacing highly correlated holdings to improve diversification, which could lead to a more efficient allocation and better risk management.

Dividends Info

  • Invesco QQQ Trust 0.60%
  • SPDR S&P 500 ETF Trust 0.90%
  • Vanguard Information Technology Index Fund ETF Shares 0.60%
  • Vanguard Health Care Index Fund ETF Shares 1.10%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.88%

The portfolio's dividend yield is modest at 0.88%, reflecting its growth-oriented strategy. While dividends can provide a steady income stream, growth-focused portfolios often prioritize capital appreciation. Depending on income needs, consider integrating higher-yielding investments for a balanced approach. However, if growth remains the primary goal, the current yield aligns well with the portfolio's strategy.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • SPDR S&P 500 ETF Trust 0.10%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Health Care Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.11%

The portfolio's total expense ratio (TER) is 0.11%, which is commendably low. Low costs are beneficial as they enhance net returns over time, especially in a growth-focused portfolio. Keeping expenses minimal is crucial for maximizing long-term gains. Regularly review and compare fund fees to ensure cost efficiency, but the current cost structure is already well-optimized.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

Compare your holdings

How much do the funds you hold actually overlap with the ones people weigh them against?

AVDV vs VOO DRAM vs VGT DRAM vs VOO SPMO vs VOO

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey