A growth-focused portfolio with heavy tech exposure and moderate diversification

Report created on Jul 30, 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 exhibits a strong tilt towards technology, with nearly half of its allocation in tech-related ETFs and stocks. The inclusion of broad market index funds and bond ETFs suggests an attempt at diversification, though the tech sector's dominance overshadows this effort. The presence of a single stock, Palantir Technologies, introduces specific company risk, albeit in a small proportion. The portfolio's structure, blending ETFs, mutual funds, and individual stocks across various sectors and asset classes, aims to balance growth potential with risk management.

Growth Info

Historically, this portfolio has demonstrated impressive growth, with a Compound Annual Growth Rate (CAGR) of 19.41%. However, it's important to remember that past performance is not indicative of future results. The maximum drawdown of -23.02% signals significant volatility, likely influenced by the heavy tech exposure. Days contributing to 90% of returns being concentrated in a handful of sessions highlight the portfolio's susceptibility to short-term market movements, emphasizing the need for a long-term perspective.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, show a wide range of potential outcomes for this portfolio. While the majority of simulations predict positive returns, the variance between the 5th and 67th percentiles underscores the inherent uncertainty in markets, especially in tech-heavy portfolios. These projections are useful for setting expectations but should be taken with caution, as they cannot account for unforeseen market shifts.

Asset classes Info

  • Stocks
    89%
  • Bonds
    11%

The portfolio's asset allocation leans heavily towards stocks (89%), with a smaller bond component (11%). This distribution aligns with its growth profile but limits the cushion against market downturns typically provided by bonds. The absence of cash or alternative investments further narrows diversification, potentially increasing risk during volatile periods. Adjusting the asset mix could enhance stability without significantly compromising growth potential.

Sectors Info

  • Technology
    45%
  • Financials
    8%
  • Health Care
    6%
  • Industrials
    5%
  • Telecommunications
    5%
  • Consumer Staples
    4%
  • Consumer Discretionary
    4%
  • Energy
    4%
  • No data
    3%
  • Consumer Discretionary
    1%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

Technology's 45% share of the portfolio underscores a conviction in tech's growth prospects but also concentrates risk. Financial Services and Healthcare, the next largest sectors, provide some balance, yet the overall sectoral distribution remains skewed. This tech-heavy orientation may amplify volatility during sector-specific downturns. Broadening sectoral exposure could mitigate this risk while still capturing growth opportunities across the economy.

Regions Info

  • North America
    78%
  • No data
    3%
  • Europe Developed
    3%
  • Asia Developed
    2%
  • Asia Emerging
    1%
  • Japan
    1%

Geographic allocation is predominantly North American (78%), with minimal exposure to other regions. This concentration benefits from the robust performance of U.S. markets but limits global diversification. Expanding into developed European or Asian markets, and emerging economies, could reduce geographical risk and tap into growth outside the U.S.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    31%
  • Mid-cap
    14%
  • No data
    3%
  • Small-cap
    2%
  • Micro-cap
    1%

The portfolio's emphasis on mega (38%) and big-cap (31%) companies suggests a preference for stability and established growth. Medium, small, and micro-caps represent a smaller fraction, offering limited exposure to potentially higher-growth, albeit riskier, segments of the market. Diversifying more into smaller caps could introduce new growth avenues, albeit with increased volatility.

Redundant positions Info

  • Dodge & Cox Income Fund - Class X
    Vanguard Total Bond Market Index Fund ETF Shares
    High correlation
  • Vanguard S&P 500 ETF
    SPDR S&P 500 ETF Trust
    Fidelity 500 Index Fund
    High correlation

The high correlation observed between certain assets, particularly within the S&P 500 ETFs and between bond funds, indicates redundancy that may not contribute to diversification. This redundancy could be streamlined to optimize the portfolio's efficiency, potentially reallocating to underrepresented sectors, asset classes, or geographic regions to enhance diversification benefits.

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.

Optimizing the portfolio involves reducing overlap and enhancing diversification. The current setup suggests room for improvement in risk-return efficiency. By addressing the high correlation among certain holdings and adjusting the sectoral and geographic exposure, the portfolio could achieve a more favorable balance between risk and return, potentially reaching the projected optimal return of 55.91% at a controlled risk level.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Dodge & Cox Income Fund - Class X 3.20%
  • Fidelity 500 Index Fund 0.90%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • VanEck Semiconductor ETF 0.40%
  • SPDR S&P 500 ETF Trust 0.90%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND INSTITUTIONAL SHARES 2.10%
  • Weighted yield (per year) 1.52%

Dividend yields across the portfolio vary, contributing to its income stream alongside capital gains. The overall yield of 1.52% is modest, reflecting the growth orientation over income generation. For investors seeking higher income, reallocating a portion towards higher-yielding assets or sectors could improve the income component without drastically altering the portfolio's growth trajectory.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Fidelity 500 Index Fund 0.02%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • VanEck Semiconductor ETF 0.35%
  • SPDR S&P 500 ETF Trust 0.10%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND INSTITUTIONAL SHARES 0.06%
  • Weighted costs total (per year) 0.10%

The portfolio's total expense ratio (TER) of 0.10% is relatively low, minimizing the drag on returns. This cost efficiency is commendable, especially given the diverse mix of assets. Maintaining low costs is crucial for enhancing long-term performance, as even small differences in fees can compound significantly over time.

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