Growth-focused portfolio with heavy tech exposure and high historical performance

Report created on Aug 2, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is heavily concentrated in technology, with significant investments in the Invesco NASDAQ 100 ETF and the Schwab U.S. Large-Cap Growth ETF, each constituting 40%, and the VanEck Semiconductor ETF making up the remaining 20%. This composition reflects a strong focus on growth sectors, particularly in the technology and semiconductor industries. While this concentration may offer high growth potential, it also exposes the portfolio to sector-specific risks and volatility.

Growth Info

Historically, this portfolio has demonstrated impressive growth, boasting a Compound Annual Growth Rate (CAGR) of 19.35%. However, it's essential to note the substantial maximum drawdown of -37.11%, indicating significant volatility and potential for large temporary declines. This performance is characteristic of growth-oriented portfolios, where high returns are often accompanied by increased risk and volatility.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of potential future outcomes, suggest a wide variance in possible portfolio values. With the majority of simulations showing positive returns and an annualized return of 23.82%, the projections are optimistic. Yet, the broad spread between the 5th and 67th percentiles underscores the inherent uncertainty and risk in such growth-focused strategies.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no diversification into other asset classes like bonds or real estate. This singular focus enhances the portfolio's growth potential but also increases its susceptibility to market fluctuations. Diversifying across different asset classes can provide a buffer against stock market volatility and reduce overall portfolio risk.

Sectors Info

  • Technology
    61%
  • Telecommunications
    12%
  • Consumer Discretionary
    10%
  • Health Care
    5%
  • Financials
    3%
  • Industrials
    3%
  • Consumer Staples
    3%
  • Basic Materials
    1%
  • Utilities
    1%

The technology sector dominates the portfolio at 61%, followed by communication services and consumer cyclicals. Such a sector-heavy approach can lead to high returns, especially in bull markets, but also poses a risk during sector downturns. Diversification across a broader range of sectors could mitigate this risk while still allowing for significant growth opportunities.

Regions Info

  • North America
    95%
  • Asia Developed
    2%
  • Europe Developed
    2%

With 95% of assets allocated in North America, the portfolio has a strong domestic focus. While this concentration in developed markets can offer stability and robust growth prospects, it also limits exposure to emerging markets, which may offer higher growth potential. Increasing geographic diversification could enhance returns and reduce region-specific risks.

Market capitalization Info

  • Mega-cap
    57%
  • Large-cap
    31%
  • Mid-cap
    10%
  • Small-cap
    1%

The emphasis on mega and big-cap stocks (88% combined) aligns with the portfolio's growth and stability goals. These companies often provide reliable returns and have a significant impact on market indices. However, incorporating more medium, small, or even micro-cap stocks could introduce higher growth potential, albeit with increased risk.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Invesco NASDAQ 100 ETF
    High correlation

The high correlation between the Invesco NASDAQ 100 ETF and the Schwab U.S. Large-Cap Growth ETF suggests redundancy, limiting the portfolio's diversification benefits. Diversifying into assets with lower correlation can enhance risk-adjusted returns by spreading risk across uncorrelated investments.

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 the portfolio for the Efficient Frontier could involve reducing overlap between highly correlated assets and introducing diversification across different asset classes, sectors, and geographies. This approach aims to achieve the best possible risk-return ratio, enhancing the portfolio's efficiency without necessarily sacrificing growth potential.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • VanEck Semiconductor ETF 0.40%
  • Weighted yield (per year) 0.44%

The portfolio's average dividend yield of 0.44% reflects its growth orientation, as growth stocks typically reinvest earnings rather than pay high dividends. For investors seeking income, this yield may be insufficient. Incorporating assets with higher dividend yields could provide a steady income stream without significantly compromising growth potential.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • VanEck Semiconductor ETF 0.35%
  • Weighted costs total (per year) 0.15%

The portfolio's total expense ratio (TER) of 0.15% is relatively low, which is beneficial for long-term growth as costs can significantly erode returns over time. Maintaining focus on cost-efficient investments will continue to support the portfolio's performance efficiency.

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