High-growth tech-focused portfolio with significant concentration in leading tech giants

Report created on Aug 7, 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 concentrated in the technology sector, with 50% of its allocation in two of the largest tech companies, Apple Inc. and Microsoft Corporation, and the remaining 50% in two ETFs that also focus on technology and growth sectors. This composition reflects a strong bias towards growth-oriented investments, particularly within the technology industry, but it comes with a low level of diversification across sectors and asset classes.

Growth Info

Historically, this portfolio has shown a remarkable Compound Annual Growth Rate (CAGR) of 23.62%, with a maximum drawdown of -32.98%. These figures suggest a high-return, high-risk profile, typical for tech-focused investments. The days contributing to 90% of returns being concentrated in 43.0 days highlight the portfolio's volatility and the importance of timing in the market.

Projection Info

Using Monte Carlo simulation, which projects future performance based on historical data, the portfolio shows a wide range of outcomes. The 50th percentile projection suggests a potential increase of 1,859.5%, indicating strong growth prospects. However, the significant range between the 5th and 67th percentiles underscores the high level of uncertainty and risk associated with this portfolio.

Asset classes Info

  • Stocks
    100%

The portfolio's assets are entirely in stocks, with no allocation to bonds, real estate, or other asset classes that could provide income or reduce volatility. This singular focus on stocks, particularly within the technology sector, amplifies both the potential for high returns and the risk of significant losses, especially during market downturns.

Sectors Info

  • Technology
    88%
  • Consumer Discretionary
    4%
  • Telecommunications
    4%
  • Financials
    2%
  • Health Care
    1%
  • Industrials
    1%

With 88% of the portfolio in technology, followed by minor allocations to consumer cyclicals and communication services, the sectoral distribution further emphasizes the growth-oriented but risky nature of this investment strategy. This heavy concentration in technology increases exposure to sector-specific risks, such as regulatory changes or technology shifts.

Regions Info

  • North America
    100%

The geographic allocation is entirely focused on North America, specifically the United States. This geographic concentration limits exposure to potential growth in other regions, such as Asia or Europe, and increases vulnerability to U.S.-specific economic and political risks.

Market capitalization Info

  • Mega-cap
    79%
  • Large-cap
    12%
  • Mid-cap
    6%
  • Small-cap
    2%
  • Micro-cap
    1%

The portfolio's emphasis on mega-cap companies (79% allocation) aligns with its growth and technology focus, given that many leading tech companies have large market capitalizations. However, this focus on mega-caps can limit opportunities for higher returns from smaller, potentially faster-growing companies.

Redundant positions Info

  • Vanguard Information Technology Index Fund ETF Shares
    Vanguard Growth Index Fund ETF Shares
    High correlation

The high correlation between the Vanguard Information Technology Index Fund ETF Shares and the Vanguard Growth Index Fund ETF Shares, alongside the direct stock holdings in Apple and Microsoft, indicates a lack of diversification benefits. This redundancy could amplify losses during tech sector downturns.

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.

To optimize risk versus return, the portfolio would benefit from diversification beyond the technology sector and North American equities. Introducing assets with low correlation to the current holdings, such as international equities, bonds, or alternative investments, could improve the risk-return profile without necessarily sacrificing growth potential.

Dividends Info

  • Apple Inc 0.50%
  • Microsoft Corporation 0.60%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Weighted yield (per year) 0.50%

The overall dividend yield of 0.50% is relatively low, which is typical for growth-focused technology investments. Investors in this portfolio should not expect significant income from dividends but rather potential capital appreciation.

Ongoing product costs Info

  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.04%

The portfolio benefits from relatively low costs, with Total Expense Ratios (TERs) of 0.10% and 0.04% for the ETFs. These low costs are advantageous for long-term growth by minimizing the drag on performance.

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