Growth-oriented portfolio with a tech-heavy tilt and strong US focus

Report created on Jul 23, 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 invested in US equities, with a significant emphasis on the technology sector, represented by a 60% allocation to the SPDR® Portfolio S&P 500 ETF and a 20% allocation to the Vanguard Information Technology Index Fund ETF Shares. The inclusion of the Schwab U.S. Dividend Equity ETF and Vanguard Total International Stock Index Fund ETF Shares, each at 10%, attempts to introduce diversification. However, the overall portfolio remains heavily skewed towards technology and US markets, with limited exposure to international stocks and other sectors.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 15.39% with a maximum drawdown of -33.14%. These figures suggest a strong performance, albeit with significant volatility, as evidenced by the substantial drawdown. The days contributing most to returns being concentrated in a relatively small number indicates that the portfolio's gains are subject to significant short-term fluctuations, which is typical of growth-oriented, tech-heavy portfolios.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. The median projection suggests a 494.3% increase, but it's important to remember that such simulations have limitations. They cannot predict future market conditions or unexpected global events, making it crucial to consider these projections as one of many tools in evaluating potential portfolio performance.

Asset classes Info

  • Stocks
    100%

With 100% of the portfolio allocated to stocks, there's a clear growth orientation but also a higher risk profile. This lack of diversification across asset classes, such as bonds or real estate, can lead to increased volatility. Diversifying across different asset classes can help mitigate risk while still allowing for growth, especially in turbulent market conditions.

Sectors Info

  • Technology
    43%
  • Financials
    11%
  • Consumer Discretionary
    8%
  • Health Care
    8%
  • Industrials
    7%
  • Telecommunications
    7%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

The technology sector dominates the portfolio at 43%, reflecting a strong conviction in tech's growth prospects. However, this concentration increases the portfolio's susceptibility to sector-specific risks. Expanding into other sectors could reduce volatility without significantly compromising growth potential, as sectors like healthcare and consumer cyclicals also offer growth opportunities with potentially lower risk.

Regions Info

  • North America
    90%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%

The geographic allocation heavily favors North America (90%), with minimal exposure to international markets. This concentration enhances the portfolio's vulnerability to regional economic shifts and misses out on potential growth in emerging markets. Broadening geographic exposure could introduce new growth avenues and reduce risk tied to any single region's economic performance.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    35%
  • Mid-cap
    18%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio's focus on mega (43%) and big (35%) cap stocks aligns with its growth and risk profile, as these companies typically offer more stability than smaller companies. However, incorporating a greater mix of medium, small, and micro-cap stocks could enhance potential returns, as these segments often outperform larger caps over the long term, albeit with increased 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 demonstrates a strong growth orientation but could benefit from optimization towards the Efficient Frontier. This would entail adjusting asset allocations to achieve the best possible risk-return ratio. While the portfolio shows solid historical performance, diversifying further across asset classes, sectors, and geographies could improve its risk-adjusted return profile without necessarily sacrificing growth potential.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.80%
  • SPDR® Portfolio S&P 500 ETF 1.20%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.48%

The portfolio's dividend yield stands at 1.48%, with the Schwab U.S. Dividend Equity ETF contributing a significant 3.80% yield. While the focus is clearly on growth, dividends can provide a steady income stream and potential for reinvestment, contributing to compounding returns over time. Balancing growth and income-generating assets could offer a more holistic approach to wealth accumulation.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

The portfolio benefits from low overall costs, with a Total Expense Ratio (TER) of 0.04%. This efficiency is crucial for long-term growth, as lower costs directly translate to higher net returns. Continuously monitoring and minimizing investment costs remains a key strategy for enhancing portfolio performance.

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