Growth-focused portfolio with high tech exposure and low diversification

Report created on Aug 13, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is heavily weighted towards technology, with 40% in a tech-focused ETF and a significant stake in Berkshire Hathaway, which has considerable tech investments. The inclusion of broad-market ETFs like the Vanguard S&P 500 and specialty ETFs such as the Schwab U.S. Dividend Equity and VanEck Morningstar Wide Moat ETFs, while diverse in approach, does not fully mitigate the high concentration in the technology sector and large-cap stocks. This composition suggests a growth-oriented strategy with a tilt towards high-performing sectors but limited in terms of overall diversification.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 17.48%, with a maximum drawdown of -32.07%. These figures indicate a strong performance trend, though the significant drawdown highlights the portfolio's susceptibility to market volatility, particularly within the tech sector. The days contributing most to returns suggest that gains are concentrated in specific periods, emphasizing the importance of timing and market conditions in achieving these results.

Projection Info

A Monte Carlo simulation reveals a wide range of outcomes, with a median projected increase of 634.3%, indicating potential for substantial growth. However, the broad spread between the 5th and 67th percentiles (113.5% to 937.6%) underscores the high level of uncertainty and risk inherent in this portfolio. This tool helps visualize potential future scenarios based on historical data, though it's crucial to remember that past performance is not indicative of future results.

Asset classes Info

  • Stocks
    100%

The portfolio's asset allocation is exclusively in stocks, with no presence in other asset classes like bonds or real estate. This setup is typical for growth-oriented investors seeking higher returns, albeit at a higher risk. The absence of diversification across asset classes can lead to increased volatility, especially during market downturns, making it vital to consider integrating other asset types for balance.

Sectors Info

  • Technology
    50%
  • Financials
    25%
  • Health Care
    5%
  • Industrials
    4%
  • Consumer Staples
    4%
  • Consumer Discretionary
    4%
  • Telecommunications
    3%
  • Energy
    3%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

Sector distribution is heavily skewed towards technology, which comprises half of the portfolio. While the tech sector has historically provided substantial returns, this concentration increases the portfolio's risk profile, especially during tech-specific downturns. Other sectors like financial services, healthcare, and industrials are represented but to a much lesser extent. Diversifying across more sectors could reduce risk and stabilize returns over time.

Regions Info

  • North America
    99%

Geographic allocation is almost entirely focused on North America, with 99% of assets. This concentration in a single region, while potentially capitalizing on the growth of the US economy and its dominant tech industry, limits exposure to international markets and the diversification benefits they can offer. Considering allocations to developed European or Asian markets could provide additional growth opportunities and risk mitigation.

Market capitalization Info

  • Mega-cap
    53%
  • Large-cap
    26%
  • Mid-cap
    14%
  • Small-cap
    5%
  • Micro-cap
    1%

The portfolio leans heavily towards mega and large-cap stocks, which are typically less volatile than smaller companies but can still offer significant growth. This focus aligns with the portfolio's growth-oriented strategy. However, incorporating a broader mix of medium, small, and micro-cap stocks could enhance diversification and potentially unlock higher growth rates, albeit with increased risk.

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 current allocation shows a strong growth orientation but could benefit from optimization towards the Efficient Frontier to achieve a better risk-return ratio. This means adjusting the asset allocation to find the ideal balance between maximizing returns and minimizing risk, based on historical performance. While this approach is based on past data and doesn't guarantee future outcomes, it can provide a framework for more informed decision-making.

Dividends Info

  • Fidelity® MSCI Information Technology Index ETF 0.40%
  • VanEck Morningstar Wide Moat ETF 1.30%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.90%

The portfolio's overall dividend yield is 0.90%, contributed by the individual yields of the included ETFs and stocks. While dividends are not the primary focus of this growth-oriented strategy, they can provide a steady income stream and contribute to total returns. Considering higher-dividend-yielding assets could offer a balance between growth potential and income, especially in volatile market conditions.

Ongoing product costs Info

  • Fidelity® MSCI Information Technology Index ETF 0.08%
  • VanEck Morningstar Wide Moat ETF 0.47%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.07%

The portfolio's total expense ratio (TER) of 0.07% is impressively low, which is beneficial for maximizing long-term returns. Keeping costs low is crucial in investment management, as high fees can significantly erode earnings over time. This portfolio does well in minimizing expenses, which supports better performance and efficiency.

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