Growth-focused portfolio with heavy tech sector and semiconductor emphasis

Report created on Jul 21, 2025

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio is best suited for an investor with a high risk tolerance and a long-term investment horizon. The heavy emphasis on technology and semiconductors aligns with a growth-oriented strategy, seeking substantial returns at the expense of higher volatility. Ideal for those comfortable with market fluctuations and sector-specific risks, it's designed for investors who are bullish on tech's future and willing to weather short-term downturns for potentially higher long-term gains.

Positions

This portfolio is predominantly invested in the stock market, with a significant concentration in technology and semiconductors, evident from the allocation to specific ETFs and funds. The Vanguard Total Stock Market Index Fund forms the backbone, providing broad market exposure, while the VanEck Semiconductor ETF, Vanguard Information Technology Index Fund ETF Shares, and iShares Semiconductor ETF highlight a targeted bet on the tech and semiconductor sectors. The Vanguard S&P 500 ETF adds a layer of top US company exposure. This composition suggests a growth-oriented strategy with moderate diversification across sectors but a high concentration in technology-related assets.

Growth Info

The portfolio has shown impressive historic performance, with a Compound Annual Growth Rate (CAGR) of 19.21%. This high return rate is tempered by a significant maximum drawdown of -35.89%, indicating periods of high volatility. The days contributing most to returns are relatively few, suggesting that the portfolio's gains are concentrated in short, strong market rallies. Compared to a balanced benchmark, this performance reflects the high-risk, high-reward nature of tech and semiconductor investments.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, show a wide range of potential portfolio values, emphasizing the uncertainty inherent in this growth-focused strategy. The majority of simulations predict positive returns, with the median outcome suggesting substantial growth. However, the broad spread between the 5th and 67th percentiles indicates significant risk. These projections are useful for understanding potential volatility but should be taken with caution as past performance is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no diversification into other asset classes like bonds or real estate. This allocation supports a growth-oriented investment strategy but increases susceptibility to market downturns. The absence of asset class diversification can amplify volatility, especially in tech-heavy portfolios prone to rapid market changes.

Sectors Info

  • Technology
    58%
  • Financials
    9%
  • Health Care
    6%
  • Consumer Discretionary
    6%
  • Telecommunications
    6%
  • Industrials
    6%
  • Consumer Staples
    3%
  • Energy
    2%
  • Real Estate
    2%
  • Utilities
    1%
  • Basic Materials
    1%
  • Consumer Discretionary
    1%

The technology sector, including semiconductors, dominates the portfolio, comprising over half of the total investment. While this sectoral focus aligns with a growth strategy, it also exposes the portfolio to sector-specific risks, such as regulatory changes or technological obsolescence. The remaining sectors, including financial services and healthcare, provide some balance but are significantly underweighted compared to a more diversified approach.

Regions Info

  • North America
    95%
  • Asia Developed
    3%
  • Europe Developed
    2%

Geographic exposure is heavily skewed towards North America, particularly the US, with minimal exposure to developed markets in Asia and Europe. This concentration benefits from the US market's historical strength but limits global diversification, potentially missing out on growth opportunities in emerging markets and other developed regions.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    35%
  • Mid-cap
    16%
  • Small-cap
    6%
  • Micro-cap
    2%

The portfolio's market capitalization breakdown shows a preference for mega and large-cap stocks, which tend to be more stable and less volatile than smaller companies. This bias towards larger companies is consistent with the portfolio's growth focus, as these firms often have more established business models and global reach. However, the underrepresentation of small and micro-cap stocks may limit exposure to high-growth potential opportunities.

Redundant positions Info

  • VanEck Semiconductor ETF
    iShares Semiconductor ETF
    High correlation
  • Vanguard Total Stock Market Index Fund Admiral Shares
    Vanguard S&P 500 ETF
    High correlation

The portfolio contains highly correlated assets, particularly within the semiconductor ETFs and between the Vanguard Total Stock Market Index Fund and the Vanguard S&P 500 ETF. This redundancy reduces the portfolio's diversification benefits, as these assets are likely to respond similarly to market changes. Reducing overlap could enhance the portfolio's risk-adjusted returns by broadening exposure across less correlated investments.

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 between certain assets to enhance diversification without sacrificing the growth objective. By reducing overlap, particularly between the semiconductor ETFs and between the broad market and S&P 500 ETFs, the portfolio can achieve a more efficient risk-return profile. This optimization leans on the concept of the Efficient Frontier, aiming to maximize returns for a given level of risk by adjusting asset allocation.

Dividends Info

  • VanEck Semiconductor ETF 0.40%
  • iShares Semiconductor ETF 0.70%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.90%
  • Weighted yield (per year) 0.77%

The dividend yields from the various funds and ETFs contribute to the portfolio's total income, with an overall yield of 0.77%. While not the primary focus of a growth-oriented strategy, these dividends provide a stream of income that can be reinvested to compound growth. The varying yields reflect the different income-generating capabilities of each asset, with the S&P 500 ETF offering the highest yield.

Ongoing product costs Info

  • VanEck Semiconductor ETF 0.35%
  • iShares Semiconductor ETF 0.35%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.04%
  • Weighted costs total (per year) 0.13%

The portfolio's total expense ratio (TER) of 0.13% is relatively low, minimizing the drag on returns. This cost efficiency is crucial for long-term growth, as even small differences in fees can significantly impact compounded returns over time. The varying expense ratios among the assets reflect the different management costs associated with each fund or ETF.

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