High-tech concentrated portfolio with aggressive growth potential and high volatility

Report created on Oct 28, 2025

Risk profile Info

6/7
Aggressive
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily concentrated in the technology sector, with NVIDIA Corporation alone constituting nearly half of the portfolio's value. The inclusion of broad-market ETFs like the Vanguard Total Stock Market Index Fund ETF Shares and the Invesco QQQ Trust, alongside a specific bet on American Airlines Group, reflects an aggressive growth strategy. However, this high concentration in a single company and sector significantly limits diversification, increasing the portfolio's risk profile.

Growth Info

Historically, this portfolio has exhibited a remarkable Compound Annual Growth Rate (CAGR) of 39.08%, though it has also faced a substantial maximum drawdown of -64.33%. These figures underscore the portfolio's high-risk, high-reward nature. The days contributing to 90% of returns being so few indicate that the portfolio's performance is highly volatile and dependent on specific, short-term market movements.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 987.3% but also a possibility of minimal gains at the 5th percentile. This variability highlights the uncertainty inherent in aggressive investment strategies, especially when heavily weighted towards volatile sectors like technology.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, with no allocation to cash, bonds, or other asset classes. This allocation aligns with an aggressive growth strategy but lacks the balance that other asset classes can provide, potentially increasing volatility and risk during market downturns.

Sectors Info

  • Technology
    62%
  • Industrials
    12%
  • Financials
    6%
  • Consumer Discretionary
    5%
  • Telecommunications
    4%
  • Health Care
    4%
  • Consumer Staples
    2%
  • Energy
    1%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

With 62% in technology, the sector allocation of this portfolio underscores a strong belief in the continued growth of tech companies. However, such a heavy concentration can lead to increased volatility, especially in response to sector-specific risks. The minimal exposure to other sectors like industrials, financial services, and healthcare does little to mitigate this concentration risk.

Regions Info

  • North America
    96%
  • Europe Developed
    2%
  • Asia Emerging
    1%
  • Japan
    1%
  • Asia Developed
    1%

The geographic allocation is heavily skewed towards North America, particularly the United States, with minimal exposure to international markets. This focus may limit global diversification benefits and increase susceptibility to regional economic and political events.

Market capitalization Info

  • Mega-cap
    66%
  • Mid-cap
    16%
  • Large-cap
    14%
  • Small-cap
    2%
  • Micro-cap
    1%

The portfolio's focus on mega-cap stocks (66%) suggests a preference for large, established companies, particularly within the tech sector. While these companies often offer stability and consistent growth, the limited exposure to small and micro-cap stocks may restrict potential for outsized returns from emerging companies.

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.

Given the portfolio's current composition, optimizing for the Efficient Frontier could involve diversifying across more sectors and asset classes to achieve a better risk-return profile. While the portfolio's focus on technology and large-cap stocks aligns with aggressive growth objectives, a more balanced allocation could reduce volatility without substantially compromising potential returns.

Dividends Info

  • Invesco QQQ Trust 0.30%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 0.53%

The overall dividend yield of the portfolio is relatively low, reflecting its focus on growth over income. While this aligns with an aggressive growth strategy, it means the portfolio may not provide significant income during market downturns or periods of slow growth.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.02%

The portfolio benefits from relatively low costs, with the Total Expense Ratio (TER) averaging 0.02%. This cost efficiency is commendable, as lower costs can significantly enhance long-term returns, especially important in a high-growth strategy.

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