A growth-oriented portfolio with tech concentration and high North American exposure

Report created on Mar 27, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

The portfolio is heavily weighted towards ETFs, with the Invesco NASDAQ 100 ETF comprising 40% and the Vanguard S&P 500 ETF at 15%. These provide broad market exposure, particularly in tech-heavy indices. JPMorgan Equity Premium Income ETF adds 20%, focusing on income generation. NVIDIA Corporation represents 15% as a single stock, adding specific sector exposure. The Gabelli MultiMedia Mutual Fund at 10% adds diversification. Compared to a typical growth portfolio, this one is more concentrated in fewer holdings, which could lead to higher volatility but also potentially higher returns.

Growth Info

Historically, the portfolio has demonstrated strong performance with a CAGR of 19.90%, significantly above average market returns. However, it also experienced a maximum drawdown of -35.44%, indicating substantial risk during downturns. This high volatility is typical for growth-focused portfolios, which aim for capital appreciation. Comparing to benchmarks, such high returns often come with increased risk. Investors should be prepared for potential fluctuations and ensure they are comfortable with the associated volatility.

Projection Info

Monte Carlo simulations, which use historical data to project future performance, indicate a wide range of potential outcomes for this portfolio. With a 5th percentile outcome of 94.8% and a 67th percentile of 1,849.5%, the simulations suggest a high potential for growth but also highlight the inherent risk. While 988 out of 1,000 simulations show positive returns, it's important to remember that these projections are not guarantees. Investors should consider their risk tolerance and investment horizon when evaluating these projections.

Asset classes Info

  • Stocks
    97%
  • No data
    3%

The portfolio is heavily skewed towards stocks, with 97% allocated to this asset class. This aligns with a growth-oriented strategy, aiming for capital appreciation. However, it limits diversification benefits that other asset classes like bonds or real estate might offer. Compared to benchmarks, this allocation is aggressive and may lead to higher volatility. To enhance diversification, consider gradually incorporating different asset classes, which can provide stability during market downturns.

Sectors Info

  • Technology
    44%
  • Financials
    15%
  • Consumer Discretionary
    9%
  • Telecommunications
    9%
  • Health Care
    7%
  • Industrials
    5%
  • Consumer Staples
    5%
  • Utilities
    2%
  • Energy
    1%
  • Basic Materials
    1%
  • Real Estate
    1%

The portfolio is concentrated in technology, with 44% allocated to this sector, primarily through the Invesco NASDAQ 100 ETF and NVIDIA Corporation. Financial services and consumer cyclicals follow at 15% and 9%, respectively. This tech-heavy allocation can lead to higher volatility, especially during periods of interest rate changes. While technology has been a strong performer, consider balancing with other sectors like healthcare or utilities to mitigate sector-specific risks and enhance stability.

Regions Info

  • North America
    98%
  • Europe Developed
    1%

Geographically, the portfolio is overwhelmingly focused on North America at 98%, with minimal exposure to other regions. This concentration can limit diversification benefits and expose the portfolio to regional risks. While the U.S. market has performed well historically, diversifying into developed Europe or emerging Asia could provide opportunities for growth and risk mitigation. Consider gradually increasing international exposure to balance the geographic allocation.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    29%
  • Mid-cap
    11%
  • Micro-cap
    10%

The portfolio leans towards large-cap companies, with 47% in mega caps and 29% in big caps. This focus on larger companies can provide stability and less volatility compared to smaller companies. However, the 10% allocation to micro caps adds an element of risk and potential for higher returns. Balancing market capitalization by incorporating more small or medium-cap stocks could enhance diversification and provide growth opportunities, though it may increase volatility.

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.

The portfolio's risk-return profile can be optimized using the Efficient Frontier, which helps identify the best possible risk-return ratio based on current assets. This optimization does not necessarily guarantee diversification but focuses on maximizing returns for a given level of risk. Adjusting the allocation between existing assets could improve efficiency. Consider using optimization tools to explore potential rebalancing opportunities, aligning with your financial goals and risk tolerance.

Dividends Info

  • Gabelli MultiMedia Mutual Fund 18.60%
  • JPMorgan Equity Premium Income ETF 7.40%
  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard S&P 500 ETF 1.00%
  • Weighted yield (per year) 3.69%

The portfolio's total dividend yield is 3.69%, with significant contributions from the Gabelli MultiMedia Mutual Fund and the JPMorgan Equity Premium Income ETF. Dividends can provide a steady income stream, which is beneficial for growth portfolios seeking cash flow. However, the focus remains on capital appreciation. Investors might consider reinvesting dividends to maximize growth potential. Balancing income with growth is key to achieving long-term financial goals.

Ongoing product costs Info

  • JPMorgan Equity Premium Income ETF 0.35%
  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.13%

With a Total Expense Ratio (TER) of 0.13%, the portfolio's costs are impressively low, supporting better long-term performance. Lower costs mean more of your money stays invested, compounding over time. This is particularly important in growth portfolios, where minimizing expenses can significantly impact returns. Regularly review and compare with other investment options to ensure the portfolio remains cost-effective. Keeping costs low is a strong foundation for maximizing returns.

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