Growth-focused portfolio with high exposure to tech and low diversification

Report created on Sep 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 equities, with a significant emphasis on the technology sector through its allocations in the Vanguard S&P 500 ETF, Invesco QQQ Trust, and Invesco S&P 500® Momentum ETF. The total asset allocation to stocks is 100%, indicating a lack of asset class diversification. The concentration in large-cap stocks, particularly within the tech sector, suggests a growth-oriented strategy but comes with increased volatility and sector-specific risks.

Growth Info

Historically, this portfolio has exhibited a Compound Annual Growth Rate (CAGR) of 20.15%, which is impressive by most standards. However, the maximum drawdown of -31.94% indicates significant volatility, likely due to its heavy tech sector concentration. The days that make up 90% of returns being just 38.0 highlights the portfolio's performance is highly dependent on a few key days, underscoring its riskiness.

Projection Info

Using Monte Carlo simulation, which projects future performance based on historical data, this portfolio shows a wide range of outcomes. The 5th percentile at 339.6% and the 50th percentile at 1,586.8% suggest substantial growth potential. However, it's crucial to remember that such simulations assume historical trends will continue, which may not always be the case, especially in a rapidly changing sector like technology.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, lacking in bonds, real estate, or other asset classes that could provide income or act as a hedge against stock market volatility. This singular focus enhances growth potential but also increases risk, particularly in market downturns.

Sectors Info

  • Technology
    36%
  • Consumer Discretionary
    12%
  • Telecommunications
    12%
  • Financials
    12%
  • Industrials
    7%
  • Health Care
    7%
  • Consumer Staples
    6%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    1%

With 36% in technology, followed by equal weights in consumer cyclicals, communication services, and financial services, the portfolio's sector allocation leans heavily towards growth-oriented sectors. This concentration can offer high returns during bull markets but may suffer during sector-specific downturns or broader market corrections.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

Geographically, the portfolio is almost entirely invested in North America (99%), with a negligible exposure to developed Europe (1%), and no presence in emerging markets. This geographic concentration in a single region, while potentially reducing complexity, limits global diversification and exposure to growth opportunities in other parts of the world.

Market capitalization Info

  • Mega-cap
    49%
  • Large-cap
    35%
  • Mid-cap
    15%
  • Small-cap
    1%

The portfolio's market capitalization breakdown shows a preference for mega (49%) and large-cap (35%) companies, with a smaller allocation towards mid-cap (15%) and minimal exposure to small-cap stocks (1%). This distribution is typical for growth-focused portfolios but may miss out on the higher potential returns of smaller companies.

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 allocation, there's potential for optimization towards the Efficient Frontier, where the risk-return profile could be improved. This might involve diversifying across more asset classes or sectors to reduce volatility without significantly sacrificing returns. However, such adjustments should be carefully considered to maintain the growth focus while managing risk.

Dividends Info

  • Invesco QQQ Trust 0.50%
  • Invesco S&P 500® Momentum ETF 0.50%
  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 0.86%

The dividend yield of the portfolio averages 0.86%, which is relatively low. This is expected given the growth orientation of the portfolio, where companies often reinvest earnings rather than pay out dividends. While this supports capital appreciation, it offers limited income generation.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.08%

The portfolio's total expense ratio (TER) of 0.08% is impressively low, which is beneficial for long-term growth as it minimizes the drag on returns caused by fees. Keeping costs low is a fundamental principle of successful investing, particularly important in growth-oriented strategies where compound growth is a key factor.

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