A growth-oriented portfolio with a strong focus on technology and high diversification

Report created on Jul 28, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio showcases a strategic blend of ETFs and individual stocks, with a significant emphasis on technology. The allocation includes large positions in broad market and sector-specific ETFs alongside select tech companies, indicating a clear growth orientation. The diversification across asset types and sectors is commendable, though the heavy tilt towards technology could introduce sector-specific risks. Comparing this to a benchmark, the portfolio appears more aggressive, given its higher allocation to growth-oriented assets and tech stocks.

Growth Info

Historically, the portfolio has delivered impressive returns, with a Compound Annual Growth Rate (CAGR) of 30.81%. This high performance, however, comes with notable volatility, as seen in the maximum drawdown of -30.62%. The days contributing most to returns are relatively few, suggesting significant performance spikes. When benchmarked, such high returns are typically associated with higher risk levels, underscoring the growth profile of this portfolio. This historical performance, while stellar, should be viewed with caution as past success is not a guaranteed future outcome.

Projection Info

Monte Carlo simulations project a wide range of potential outcomes, with a median increase suggesting substantial growth. However, the broad spread between the 5th and 67th percentiles indicates considerable uncertainty. This method, using historical data to forecast future performance, helps visualize risk but cannot predict unforeseen market shifts. Such projections are valuable for understanding potential volatility and assessing if the portfolio aligns with the investor's risk tolerance and time horizon.

Asset classes Info

  • Stocks
    98%
  • No data
    1%
  • Cash
    1%

The portfolio is overwhelmingly concentrated in stocks (98%), with minimal holdings in cash and no significant investments in bonds or alternative assets. This composition is typical for growth-focused portfolios but carries higher market risk. Diversifying into other asset classes could provide a buffer against stock market volatility and reduce overall portfolio risk, especially during downturns.

Sectors Info

  • Technology
    48%
  • Financials
    10%
  • Consumer Discretionary
    9%
  • Telecommunications
    9%
  • Industrials
    7%
  • Health Care
    6%
  • Consumer Staples
    4%
  • Basic Materials
    2%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    1%

Technology dominates the sector allocation at 48%, followed by financial services and consumer cyclicals. This concentration enhances growth potential but also increases susceptibility to sector-specific downturns. The underrepresentation of traditionally defensive sectors like healthcare and utilities might limit the portfolio's resilience during market corrections. Balancing high-growth sectors with stable, income-generating ones could mitigate risk without significantly diluting growth prospects.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

With 81% allocated to North America, the portfolio has a strong domestic focus, complemented by modest international exposure. This geographic distribution supports growth objectives but may limit global diversification benefits. Increasing investments in developed European markets or emerging markets could enhance diversification and potentially capitalize on global growth opportunities.

Market capitalization Info

  • Mega-cap
    56%
  • Large-cap
    28%
  • Mid-cap
    11%
  • Small-cap
    2%

The portfolio's emphasis on mega and big-cap stocks (84%) aligns with its growth strategy, leveraging the stability and potential of large companies. However, the modest allocation to medium, small, and micro-caps suggests missed opportunities for higher growth rates these segments can offer. Incorporating a broader mix of market caps could improve diversification and return potential, albeit with increased volatility.

Redundant positions Info

  • JPMorgan Nasdaq Equity Premium Income ETF
    Invesco QQQ Trust
    SPDR® Portfolio S&P 500 Growth ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation among several ETF holdings indicates redundancy, which could be limiting the portfolio's diversification benefits. Specifically, the overlap between broad market ETFs and the technology-focused QQQ Trust suggests an area for optimization. Reducing similar holdings and introducing assets with lower correlations could enhance portfolio efficiency by reducing risk without sacrificing expected returns.

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 this portfolio involves addressing the high correlation among certain assets to enhance diversification. The Efficient Frontier suggests there's room to improve the risk-return profile by reallocating assets. Focusing on reducing overlap, especially within ETFs, and considering a wider range of asset classes and sectors, could yield a more efficient portfolio. This approach aims to maintain, if not improve, growth potential while managing risk more effectively.

Dividends Info

  • Broadcom Inc 0.80%
  • JPMorgan Nasdaq Equity Premium Income ETF 11.20%
  • Invesco QQQ Trust 0.40%
  • SPDR® Portfolio S&P 500 Growth ETF 0.60%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.59%

The portfolio's dividend yield is a mix of high and low payouts, with an average yield that contributes modestly to total returns. Given the growth orientation, dividends play a secondary role to capital appreciation. However, incorporating higher-yielding assets or dividend growth stocks could provide a steady income stream and reduce volatility, complementing the portfolio's growth focus.

Ongoing product costs Info

  • JPMorgan Nasdaq Equity Premium Income ETF 0.35%
  • Invesco QQQ Trust 0.20%
  • SPDR® Portfolio S&P 500 Growth ETF 0.04%
  • 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) 0.06%

The overall low cost structure, with a Total Expense Ratio (TER) averaging 0.06%, is a strength, ensuring more of the returns are retained by the investor. Lower costs are particularly beneficial over the long term as they compound alongside investment returns. Maintaining this focus on cost efficiency while optimizing other aspects of the portfolio will support better net performance.

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