A growth-oriented portfolio with high exposure to technology and financial sectors

Report created on Aug 14, 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 growth orientation, heavily weighted towards technology and financial services, which together constitute over half of the portfolio's allocation. The inclusion of a utilities ETF and a gold fund introduces elements of stability and inflation hedging, albeit in a limited capacity. The dominance of stocks (100% allocation) underscores a high-risk, high-reward strategy, potentially overlooking the benefits of broader asset class diversification such as bonds or real estate.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 23.89%, the portfolio has demonstrated remarkable performance historically. This high return rate, however, comes with significant volatility, as evidenced by a maximum drawdown of -32.45%. The days contributing to 90% of returns being concentrated in just 40 days further highlights the portfolio's susceptibility to short-term fluctuations.

Projection Info

Monte Carlo simulations, projecting a wide range of outcomes based on historical data, suggest a broad potential future performance spectrum. While the majority of simulations (997 out of 1,000) predict positive returns, the variance between the 5th and 67th percentiles is substantial. This underscores the inherent uncertainty and risk in predicting future returns, especially in a portfolio with high growth and volatility.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive focus on stocks, without any allocation to cash, bonds, or alternative investments, maximizes its growth potential but also increases its risk. Diversifying across more asset classes could reduce volatility and provide a more stable return profile, especially during market downturns.

Sectors Info

  • Technology
    26%
  • Financials
    26%
  • Utilities
    17%
  • Basic Materials
    17%
  • Telecommunications
    4%
  • Consumer Discretionary
    4%
  • Industrials
    3%
  • Consumer Staples
    2%
  • Health Care
    1%

The sectoral allocation leans heavily towards technology and financial services, with significant positions in utilities and basic materials. This concentration in a few sectors increases the portfolio's sensitivity to sector-specific risks. Diversifying across a wider range of sectors could mitigate this risk and potentially smooth out returns over time.

Regions Info

  • North America
    77%
  • Europe Developed
    21%
  • Africa/Middle East
    1%
  • Australasia
    1%

Geographically, the portfolio is predominantly invested in North America and Europe, with minimal exposure to emerging markets and other developed regions. This geographic concentration may limit potential gains from global economic growth and diversification benefits that come with a more global investment approach.

Market capitalization Info

  • Large-cap
    42%
  • Mega-cap
    28%
  • Mid-cap
    24%
  • Small-cap
    5%
  • Micro-cap
    1%

The market capitalization breakdown shows a balanced mix of big, mega, and medium-cap stocks, which is a positive indicator of diversification within the equity component. However, the relatively small allocations to small and micro-cap stocks suggest an opportunity to further diversify and potentially enhance returns through exposure to high-growth smaller companies.

Redundant positions Info

  • Vanguard Information Technology Index Fund ETF Shares
    Vanguard S&P 500 Growth Index Fund ETF Shares
    High correlation

The high correlation between the Vanguard Information Technology Index Fund ETF Shares and the Vanguard S&P 500 Growth Index Fund ETF Shares indicates redundancy. This overlap reduces the portfolio's diversification benefits, making it more vulnerable to sector-specific downturns. Reducing exposure to one of these or diversifying into less correlated assets could enhance the portfolio's risk-adjusted 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.

The portfolio's current configuration on the Efficient Frontier suggests room for optimization, particularly by addressing the overlap in highly correlated assets. By reallocating or diversifying these assets, the portfolio could potentially achieve a more favorable risk-return profile, moving closer to the Efficient Frontier.

Dividends Info

  • Banco Bilbao Viscaya Argentaria SA ADR 4.20%
  • GOLD PORTFOLIO GOLD PORTFOLIO 2.00%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Virtus Reaves Utilities ETF 1.10%
  • Vanguard Information Technology Index Fund ETF Shares 0.40%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.50%
  • Weighted yield (per year) 1.63%

The portfolio's overall dividend yield of 1.63% contributes to its total return, with the highest yield coming from Banco Bilbao Viscaya Argentaria SA ADR. While dividends are not the primary focus of this growth-oriented portfolio, they provide a steady income stream and can offer some downside protection in volatile markets.

Ongoing product costs Info

  • GOLD PORTFOLIO GOLD PORTFOLIO 0.68%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Virtus Reaves Utilities ETF 0.49%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.10%
  • Weighted costs total (per year) 0.25%

With a total expense ratio (TER) of 0.25%, the portfolio benefits from relatively low costs, enhancing net returns over time. The individual asset costs range from 0.10% to 0.68%, with the gold portfolio being the most expensive. Continuously monitoring and managing these costs is crucial for maintaining the portfolio's efficiency and long-term growth potential.

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