A concentrated portfolio with a strong tilt towards technology and real estate sectors
Report created on Jul 20, 2025Risk profile
4/7
Diversification profile
2/5
Positions
-
QQ Invesco NASDAQ 100 ETF
QQQM - US46138G6492 45.70% -
O Realty Income Corporation
O - US7561091049 29.46% -
SP SPDR S&P 500 ETF Trust
SPY - US78462F1030 24.85%
This portfolio is highly concentrated, with nearly 46% invested in the Invesco NASDAQ 100 ETF, about 29% in Realty Income Corporation, and roughly 25% in the SPDR S&P 500 ETF Trust. This composition reflects a significant emphasis on technology and real estate, given the substantial allocation to the NASDAQ 100 and a single real estate stock. The limited number of positions and heavy weighting towards specific sectors indicate low diversification, which is consistent with the portfolio's diversification score of 2 out of 5.
Growth
The portfolio has shown a Compound Annual Growth Rate (CAGR) of 13.23%, with a maximum drawdown of -27.88%. The days that contribute to 90% of the returns total 18, suggesting that a few exceptional days have significantly influenced the portfolio's overall performance. While the historical performance appears strong, it's important to note that past performance is not indicative of future results, especially in a portfolio with low diversification.
Projection
Monte Carlo simulations, which use historical data to predict a range of possible outcomes, show a median increase of 332.9% in portfolio value, with a 5th percentile outcome at a 29.7% increase and a 67th percentile outcome at a 514.2% increase. While these projections offer a broad view of potential future performance, they are inherently subject to the limitations of past data and cannot guarantee future returns.
Asset classes
- Stocks 100%
The portfolio is entirely allocated to stocks, with no exposure to other asset classes like bonds or commodities. This allocation enhances the portfolio's growth potential but also increases its risk, especially during market downturns. Diversifying across different asset classes can help mitigate risk and smooth out returns over time.
Sectors
- Technology 33%
- Real Estate 30%
- Telecommunications 10%
- Consumer Discretionary 9%
- Health Care 5%
- Consumer Staples 4%
- Financials 4%
- Industrials 4%
- Utilities 1%
- Basic Materials 1%
- Energy 1%
The sector allocation is heavily weighted towards technology (33%) and real estate (30%), with smaller exposures to other sectors. This concentration in technology and real estate sectors can offer high growth opportunities but also exposes the portfolio to sector-specific risks, such as regulatory changes or economic downturns affecting these industries.
Regions
- North America 99%
- Europe Developed 1%
Geographically, the portfolio is almost entirely focused on North America (99%), with minimal exposure to developed Europe (1%). This geographic concentration in the US market can limit diversification benefits and increase vulnerability to US-specific economic events.
Market capitalization
- Large-cap 53%
- Mega-cap 37%
- Mid-cap 10%
The portfolio's market capitalization breakdown shows a preference for big (53%) and mega (37%) cap stocks, with a smaller allocation to medium (10%) cap stocks. This bias towards larger companies may offer stability and lower volatility but could also limit growth potential compared to more aggressive allocations that include smaller, high-growth 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.
The current portfolio could potentially be optimized for a better risk-return profile by diversifying across more sectors, asset classes, and geographies. While the Efficient Frontier suggests this portfolio is not fully optimized, adjustments can improve diversification and potentially enhance risk-adjusted returns without significantly sacrificing growth potential.
Dividends
- Realty Income Corporation 5.70%
- Invesco NASDAQ 100 ETF 0.50%
- SPDR S&P 500 ETF Trust 0.90%
- Weighted yield (per year) 2.13%
The portfolio's dividend yield stands at 2.13%, with Realty Income Corporation contributing a significant 5.70% yield. While dividends can provide a steady income stream, the overall portfolio yield is relatively modest, reflecting the growth-oriented nature of the portfolio's holdings.
Ongoing product costs
- Invesco NASDAQ 100 ETF 0.15%
- SPDR S&P 500 ETF Trust 0.10%
- Weighted costs total (per year) 0.09%
The portfolio benefits from relatively low costs, with expense ratios of 0.15% for the Invesco NASDAQ 100 ETF and 0.10% for the SPDR S&P 500 ETF Trust, leading to a total expense ratio (TER) of 0.09%. Keeping costs low is crucial for enhancing long-term returns, and this portfolio aligns well with that principle.
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