Growth-focused portfolio with heavy tech exposure and low diversification

Report created on Oct 14, 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 characterized by a significant concentration in technology through its heavy allocation to ETFs like the Invesco QQQ Trust and VanEck Semiconductor ETF, making up 40% of the portfolio. The Vanguard S&P 500 and Schwab U.S. Dividend Equity ETFs broaden exposure slightly but still reflect a strong bias towards large-cap, U.S.-based companies. The iShares Russell 2000 ETF introduces some small-cap diversity, but overall, the portfolio's diversification is limited, with a 100% allocation to stocks and a predominant focus on North American markets.

Growth Info

The portfolio has demonstrated a robust Compound Annual Growth Rate (CAGR) of 18.19%, with a maximum drawdown of -32.02%. This performance, while impressive, is accompanied by significant volatility, as indicated by the substantial drawdown. The days contributing to 90% of returns number just 42, highlighting the portfolio's reliance on short-term gains for its overall performance. This suggests a high-risk, high-reward strategy that has paid off in the observed period but may not always do so.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential future outcomes, suggest a wide range of possibilities for this portfolio. With a median projected growth of 830.9% and a 5th percentile at just 101.4%, the simulations indicate substantial upside potential but also significant risk. It's crucial to remember that these simulations are based on past performance, which is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    100%

The portfolio's asset allocation is entirely in stocks, offering no cushion against stock market volatility through bonds or other asset classes. While this allocation aligns with a growth-focused strategy, it exposes the portfolio to higher risk, especially during market downturns. Diversifying across different asset classes can help mitigate some of this risk without necessarily compromising long-term growth potential.

Sectors Info

  • Technology
    44%
  • Consumer Discretionary
    9%
  • Telecommunications
    8%
  • Health Care
    8%
  • Financials
    8%
  • Industrials
    7%
  • Consumer Staples
    6%
  • Energy
    5%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    1%

With 44% allocated to technology, the portfolio is heavily skewed towards a sector that, while offering substantial growth opportunities, also comes with increased volatility. Other sectors like consumer cyclicals, communication services, and healthcare have smaller allocations, which may limit the portfolio's ability to hedge against tech-specific downturns. Balancing sector exposure can reduce risk and smooth out returns over time.

Regions Info

  • North America
    96%
  • Asia Developed
    2%
  • Europe Developed
    2%

The portfolio's geographic allocation is overwhelmingly in North America (96%), with minimal exposure to developed markets in Asia and Europe. This concentration in the U.S. market can limit global diversification benefits and expose the portfolio to region-specific risks. Expanding into emerging markets or other developed regions could offer additional growth opportunities and risk mitigation.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    36%
  • Mid-cap
    16%
  • Small-cap
    6%
  • Micro-cap
    5%

The distribution across market capitalizations shows a preference for mega (37%) and big (36%) cap stocks, which typically offer more stability than smaller companies but may have less growth potential. The inclusion of medium, small, and micro-cap stocks, albeit in smaller proportions, introduces some growth potential but also adds volatility. A more balanced approach could optimize the risk-return profile.

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.

Considering the Efficient Frontier, which aims to optimize portfolios for the best possible risk-return ratio, this portfolio may benefit from reallocation to achieve greater efficiency. The current heavy tilt towards technology and large-cap stocks suggests room for improvement in diversification and risk management without necessarily compromising growth potential. Adjusting the asset mix could lead to a more favorable risk-return balance.

Dividends Info

  • iShares Russell 2000 ETF 1.00%
  • Invesco QQQ Trust 0.40%
  • Schwab U.S. Dividend Equity ETF 3.90%
  • VanEck Semiconductor ETF 0.30%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.25%

The portfolio's average dividend yield of 1.25% contributes to its total return, with the Schwab U.S. Dividend Equity ETF offering the highest yield at 3.90%. While dividends are a valuable income source, especially in volatile markets, the overall yield reflects the portfolio's growth orientation. Investors seeking higher income might consider reallocating towards higher-yielding assets.

Ongoing product costs Info

  • iShares Russell 2000 ETF 0.19%
  • Invesco QQQ Trust 0.20%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.14%

The portfolio's total expense ratio (TER) of 0.14% is relatively low, indicating efficient cost management. Lower costs translate to higher net returns over time, which is particularly important for long-term growth strategies. Keeping costs low while achieving desired diversification and risk management objectives is crucial for maximizing investment outcomes.

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