Growth-oriented portfolio with a strong focus on tech and healthcare giants

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 suits an investor with a high risk tolerance and a long-term investment horizon, seeking substantial growth. The investor is likely comfortable with significant market fluctuations and sector-specific risks, prioritizing capital appreciation over income or stability. This profile fits those who are knowledgeable about market trends, particularly in the technology and healthcare sectors, and are willing to maintain a concentrated position in these areas to achieve higher returns.

Positions

  • Alphabet Inc Class A
    GOOGL - US02079K3059
    15.90%
  • UnitedHealth Group Incorporated
    UNH - US91324P1021
    15.62%
  • NVIDIA Corporation
    NVDA - US67066G1040
    10.05%
  • Amazon.com Inc
    AMZN - US0231351067
    6.71%
  • United Parcel Service Inc
    UPS - US9113121068
    5.87%
  • Target Corporation
    TGT - US87612E1064
    5.66%
  • PepsiCo Inc
    PEP - US7134481081
    4.35%
  • iShares 20+ Year Treasury Bond ETF
    TLT - US4642874329
    4.13%
  • Adobe Systems Incorporated
    ADBE - US00724F1012
    4.05%
  • Nike Inc
    NKE - US6541061031
    3.76%
  • Walt Disney Company
    DIS - US2546871060
    3.31%
  • Schwab U.S. Dividend Equity ETF
    SCHD - US8085247976
    3.15%
  • Realty Income Corporation
    O - US7561091049
    3.11%
  • Pfizer Inc
    PFE - US7170811035
    3.02%
  • Microsoft Corporation
    MSFT - US5949181045
    2.92%
  • Tyson Foods Inc
    TSN - US9024941034
    1.96%
  • ELF Beauty Inc
    ELF - US26856L1035
    1.66%
  • Celsius Holdings Inc
    CELH - US15118V2079
    1.60%
  • Dell Technologies Inc
    DELL - US24703L2025
    1.46%
  • Uber Technologies Inc
    UBER - US90353T1007
    1.12%
  • Walmart Inc
    WMT - US9311421039
    0.59%

The portfolio is predominantly invested in common stocks, with a significant concentration in technology and healthcare sectors, comprising nearly 40% of the total allocation. This high concentration in specific sectors, combined with a minimal exposure to bonds (4%) and an absence of cash or alternative investments, indicates a single-focused diversification strategy. The heavy weighting towards large-cap companies, particularly in the tech and healthcare industries, suggests a growth-oriented approach but raises concerns about the portfolio's vulnerability to sector-specific risks.

Growth Info

Historically, the portfolio has demonstrated a remarkably high Compound Annual Growth Rate (CAGR) of 21.75%, outpacing many benchmarks. However, the maximum drawdown of -33.46% highlights significant volatility and potential risk, particularly in market downturns. These returns are heavily skewed, with a small number of days contributing to the majority of gains, indicating that timing the market plays a crucial role in achieving these results, a strategy that carries high risk and is difficult to replicate consistently.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. While the median return is impressively high, the significant spread between the 5th and 67th percentiles underscores the risk of substantial losses. It's important to note that these projections are based on past performance, which is not a reliable indicator of future results, especially in a portfolio with high sector concentration.

Asset classes Info

  • Stocks
    96%
  • Bonds
    4%
  • Cash
    0%

The allocation is heavily skewed towards stocks (96%), with a minimal bond presence (4%), reflecting a growth-focused strategy with higher risk and potential returns. This asset class distribution aligns with the portfolio's risk profile but limits opportunities for risk mitigation through diversification across different asset classes, such as fixed income or real estate, which can offer stability in volatile markets.

Sectors Info

  • Technology
    20%
  • Telecommunications
    19%
  • Health Care
    19%
  • Consumer Staples
    16%
  • Consumer Discretionary
    11%
  • Industrials
    6%
  • Real Estate
    3%
  • Energy
    1%
  • Financials
    0%
  • Basic Materials
    0%
  • Utilities
    0%

The sector allocation reveals a strong tilt towards technology, communication services, and healthcare, sectors known for their growth potential. While this positioning has likely contributed to the portfolio's impressive historical performance, it also increases susceptibility to sector-specific downturns. Diversifying across a broader range of sectors could help mitigate these risks while still capturing growth opportunities.

Regions Info

  • North America
    96%
  • Europe Developed
    0%
  • Latin America
    0%

With 96% of assets allocated to North America, the portfolio exhibits a significant home bias, which could limit exposure to potential growth in other regions. This geographic concentration may increase vulnerability to regional economic downturns and misses out on diversification benefits and growth opportunities in developed and emerging markets outside North America.

Market capitalization Info

  • Mega-cap
    59%
  • Large-cap
    33%
  • Mid-cap
    3%
  • Small-cap
    0%
  • Micro-cap
    0%

The focus on mega (59%) and big (33%) cap stocks supports the portfolio's growth orientation but may limit exposure to small and mid-cap stocks, which can offer higher growth potential albeit with increased volatility. Incorporating a wider range of market capitalizations could enhance diversification and potential for returns across different market cycles.

Dividends Info

  • Dell Technologies Inc 1.50%
  • Walt Disney Company 0.90%
  • Alphabet Inc Class A 0.30%
  • Microsoft Corporation 0.70%
  • Nike Inc 1.60%
  • Realty Income Corporation 5.30%
  • PepsiCo Inc 3.00%
  • Pfizer Inc 7.20%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Target Corporation 5.00%
  • iShares 20+ Year Treasury Bond ETF 4.30%
  • Tyson Foods Inc 3.70%
  • UnitedHealth Group Incorporated 2.50%
  • United Parcel Service Inc 7.70%
  • Walmart Inc 0.90%
  • Weighted yield (per year) 2.19%

The portfolio's dividend yield of 2.19% contributes to its total return, with certain holdings offering significant yields. However, the focus on growth stocks, which typically reinvest earnings rather than pay out dividends, may limit income generation. Balancing growth and income-producing assets could provide a more stable income stream while still targeting capital appreciation.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • iShares 20+ Year Treasury Bond ETF 0.15%
  • Weighted costs total (per year) 0.01%

The portfolio benefits from low costs, with Total Expense Ratios (TERs) for the ETF holdings at 0.06% and 0.15%, contributing to an overall low cost of ownership. Minimizing investment costs is crucial for enhancing long-term returns, and this portfolio's cost structure supports efficient growth.

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.

Considering the Efficient Frontier, which aims to maximize returns for a given level of risk, the portfolio's current allocation suggests room for optimization. Adjusting asset allocations to include a broader mix of asset classes and sectors could potentially achieve a better risk-return balance. This optimization process, however, depends on maintaining the portfolio's growth focus while incorporating assets that offer diversification benefits.

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