A growth-focused portfolio with high exposure to leveraged ETFs and a significant cash position

Report created on May 30, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is predominantly composed of two asset classes: stocks (50%) and cash equivalents (49%), with a minor allocation to bonds (1%). The significant cash position, primarily through the iShares® 0-3 Month Treasury Bond ETF, suggests a conservative approach to liquidity and risk management. However, the inclusion of leveraged ETFs like ProShares Ultra QQQ and ProShares Ultra S&P500, alongside a sizable investment in Taiwan Semiconductor Manufacturing, indicates a strong growth orientation. This blend of high-risk and conservative assets creates a unique risk-return profile.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 20.17%, with a maximum drawdown of -41.66%. The performance is notably volatile, largely due to the leveraged ETFs, which amplify both gains and losses. The days contributing to 90% of returns being limited to 22 suggests that the portfolio's performance is highly concentrated in short bursts, typical of leveraged investment strategies.

Projection Info

Monte Carlo simulations, using historical data to project future outcomes, indicate a wide range of potential returns, with a median increase of 1,590.8%. The simulations show a high likelihood of positive returns (982 out of 1,000 scenarios), but the significant spread between the 5th and 67th percentiles underscores the high risk associated with this portfolio. It's crucial to note that these projections rely on past data, which is not a guaranteed predictor of future performance.

Asset classes Info

  • Stocks
    50%
  • Cash
    49%
  • Bonds
    1%

The allocation between stocks and cash equivalents is nearly balanced, with a slight tilt towards stocks. This allocation could suggest an attempt to balance growth with liquidity and risk management. However, the heavy reliance on leveraged ETFs within the stock allocation significantly increases the portfolio's risk profile, potentially overshadowing the stabilizing effect of the cash position.

Sectors Info

  • Technology
    33%
  • Telecommunications
    5%
  • Consumer Discretionary
    5%
  • Health Care
    3%
  • Financials
    3%
  • Consumer Staples
    2%
  • Industrials
    2%
  • Utilities
    1%
  • Energy
    1%
  • Basic Materials
    1%

With a third of the portfolio in technology, there's a clear sectoral concentration risk. While technology has been a high-growth sector, it's also prone to volatility and corrections. The minor allocations to other sectors like communication services and consumer cyclicals provide some diversification, but the overall sectoral balance leans heavily towards high-growth, high-risk areas.

Regions Info

  • North America
    41%
  • Asia Emerging
    15%

The geographic allocation is concentrated in North America (41%) and Asia Emerging (15%), with a notable absence of exposure to Europe, Latin America, and other developed Asian markets. This concentration in specific regions may limit global diversification benefits and expose the portfolio to regional economic and political risks.

Market capitalization Info

  • Mega-cap
    33%
  • Large-cap
    12%
  • Mid-cap
    5%

The portfolio's focus on mega-cap stocks (33%) suggests a preference for large, established companies, likely due to their perceived stability and potential for steady growth. However, the overall market capitalization exposure, including a small allocation to mid-caps, may not fully capitalize on the growth potential of smaller companies, which can offer higher returns albeit with higher volatility.

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.

The current portfolio's risk-return profile suggests room for optimization. By adjusting the allocation between the existing assets, it's possible to achieve an expected return of 2.78% at a lower risk level. This optimization emphasizes the importance of balancing high-risk investments with stable assets to enhance the portfolio's efficiency, aiming for the best possible risk-return ratio.

Dividends Info

  • ProShares Ultra QQQ 0.20%
  • iShares® 0-3 Month Treasury Bond ETF 4.70%
  • ProShares Ultra S&P500 0.90%
  • Taiwan Semiconductor Manufacturing 1.30%
  • Weighted yield (per year) 2.43%

The dividend yield of the portfolio stands at 2.43%, contributed by each holding with varying yields. While not the primary focus of a growth-oriented portfolio, these dividends provide a passive income stream, which can offer a buffer during market volatility and contribute to total return over time.

Ongoing product costs Info

  • ProShares Ultra QQQ 0.95%
  • iShares® 0-3 Month Treasury Bond ETF 0.07%
  • ProShares Ultra S&P500 0.91%
  • Weighted costs total (per year) 0.42%

The portfolio's total expense ratio (TER) of 0.42% is relatively modest, given the inclusion of leveraged ETFs, which typically have higher fees. Reducing costs can enhance long-term returns, so the low TER on the cash equivalent ETF is beneficial. However, the higher fees on the leveraged ETFs are a trade-off for their potential high returns.

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

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