A growth-focused portfolio with heavy tech and semiconductor exposure

Report created on Jul 21, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is notably concentrated in the technology sector, with a significant portion allocated to the Vanguard S&P 500 ETF, VanEck Semiconductor ETF, and Vanguard Information Technology Index Fund ETF Shares. This composition reflects a strong growth orientation, given the tech sector's historical performance. However, it also introduces sector-specific risk, as it is heavily weighted towards technology (60%) and semiconductors (20%), with the remainder in a broad market index. The diversification is moderate, leaning heavily on North American equities, which could limit exposure to potential growth in other global markets.

Growth Info

Historically, the portfolio has exhibited a Compound Annual Growth Rate (CAGR) of 19.39%, with a maximum drawdown of -34.26%. This performance is indicative of high growth potential but comes with significant volatility, as evidenced by the substantial drawdown. The days contributing to 90% of the returns number just 40, highlighting the portfolio's reliance on short, sharp gains. This pattern underscores the high-risk, high-reward nature of the investment strategy, which may not be suitable for all investors, particularly those with a lower risk tolerance or a shorter investment horizon.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, show a wide range of outcomes, with the 50th percentile at a 1,534.6% increase. While these projections offer a glimpse into potential growth, it's crucial to remember that they are based on past trends, which may not accurately predict future performance. The guaranteed positive returns in all simulations underscore the optimistic assumptions inherent in this model, which may not account for unforeseen market downturns or sector-specific shocks.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no representation from other asset classes like bonds or real estate. This allocation supports the portfolio's growth profile but lacks the balance that other asset classes could provide, particularly in terms of reducing volatility and risk. Incorporating a broader range of asset classes could enhance the portfolio's resilience against market fluctuations and provide more stable returns over time.

Sectors Info

  • Technology
    60%
  • Financials
    8%
  • Consumer Discretionary
    7%
  • Telecommunications
    6%
  • Health Care
    6%
  • Industrials
    5%
  • Consumer Staples
    4%
  • Energy
    2%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

The sectoral allocation is heavily skewed towards technology and semiconductors, with minimal exposure to other sectors. This concentration enhances the portfolio's growth prospects but also increases its vulnerability to sector-specific risks. Diversifying across a wider range of sectors could mitigate this risk, potentially leading to more consistent performance across different market conditions.

Regions Info

  • North America
    96%
  • Asia Developed
    3%
  • Europe Developed
    2%

Geographically, the portfolio is almost entirely invested in North America (96%), with minimal exposure to developed markets in Asia and Europe. This concentration in a single region can limit opportunities for global growth and increase exposure to region-specific economic and political risks. Expanding the geographic distribution could provide access to growth in emerging and developed markets outside North America, potentially enhancing returns and reducing risk.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    35%
  • Mid-cap
    14%
  • Small-cap
    2%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown shows a strong preference for mega and big-cap stocks, which typically offer stability and steady growth. However, the limited exposure to medium, small, and micro-cap stocks restricts the portfolio's potential to benefit from the rapid growth these smaller companies can offer. Increasing diversification across different market caps could enhance growth potential and spread risk more evenly.

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 portfolio's current risk-return profile, there's potential for optimization towards the Efficient Frontier, which represents the most efficient allocation for the best possible risk-return ratio. The heavy concentration in technology and semiconductors suggests room for diversification across other sectors and asset classes. Adjusting the allocation could improve the portfolio's efficiency, potentially offering higher returns for the same level of risk or the same returns for lower risk.

Dividends Info

  • VanEck Semiconductor ETF 0.40%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.90%

The dividend yields across the ETFs contribute to the portfolio's total income, with an average yield of 0.90%. While this portfolio emphasizes growth over income, dividends provide a source of cash flow that can be reinvested to compound growth. Considering the portfolio's growth orientation, the current dividend strategy appears appropriate, though investors seeking higher income might look for assets with higher yield potential.

Ongoing product costs Info

  • VanEck Semiconductor ETF 0.35%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.11%

The portfolio's total expense ratio (TER) of 0.11% is impressively low, which is beneficial for long-term growth as it minimizes the drag on returns. The individual costs of the ETFs are well-aligned with industry standards for passive investments, with the Vanguard S&P 500 ETF being particularly cost-effective. Maintaining low costs is crucial for enhancing net returns, especially in a growth-focused portfolio.

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