A growth-focused portfolio with heavy tech exposure and low diversification

Report created on Oct 21, 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 highly concentrated in two ETFs: Invesco NASDAQ 100 ETF and Vanguard S&P 500 ETF, with an 80/20 split respectively. This structure leans heavily towards large-cap stocks, particularly in the technology sector, given the NASDAQ's tech-heavy composition. The Vanguard S&P 500 ETF offers broader exposure to the overall US market but doesn't significantly diversify the portfolio due to the overlap in top holdings with the NASDAQ ETF. This composition aligns with growth-oriented strategies but carries a higher risk due to its low diversification across sectors and asset classes.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 17.46%, with a maximum drawdown of -32.80%. The days contributing to 90% of the returns were notably few, indicating that the portfolio's performance is heavily reliant on short, significant market movements. This performance is characteristic of growth-focused portfolios, especially those concentrated in sectors like technology, which can exhibit high volatility. However, the substantial returns also come with increased risk, as evidenced by the steep maximum drawdown.

Projection Info

Using Monte Carlo simulation, which projects future performance based on historical data, the portfolio shows a wide range of outcomes. The median projection suggests a potential return of 782.9% over the simulation period, with a high degree of variability indicated by the 5th and 67th percentiles. While these projections offer insight, it's essential to remember that they are based on past performance, which is not a reliable indicator of future results. The high variance underscores the portfolio's risk level, aligning with its growth profile but also highlighting the need for caution.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no presence in other asset classes like bonds or real estate. This singular focus on equities enhances growth potential but also increases volatility and risk, especially during market downturns. Diversifying across different asset classes can provide a buffer against stock market fluctuations and reduce overall portfolio risk.

Sectors Info

  • Technology
    51%
  • Telecommunications
    15%
  • Consumer Discretionary
    13%
  • Health Care
    5%
  • Consumer Staples
    5%
  • Industrials
    4%
  • Financials
    3%
  • Utilities
    2%
  • Basic Materials
    1%
  • Energy
    1%
  • Real Estate
    1%

With 51% in technology and significant allocations in communication services and consumer cyclicals, the portfolio is positioned to benefit from growth in these dynamic sectors. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or shifts in consumer behavior. Diversifying across a broader range of sectors could mitigate some of these risks while still capturing growth opportunities.

Regions Info

  • North America
    98%
  • Europe Developed
    1%

The geographic allocation is overwhelmingly North American (98%), with minimal exposure to developed Europe and no presence in emerging markets or other regions. This concentration in the US market limits global diversification, potentially missing out on growth opportunities in other parts of the world. Increasing exposure to international markets could provide additional diversification benefits and access to growth outside the US.

Market capitalization Info

  • Mega-cap
    54%
  • Large-cap
    33%
  • Mid-cap
    12%

The focus on mega (54%) and big (33%) cap stocks supports the portfolio's growth orientation but limits exposure to the potentially higher growth opportunities found in mid and small-cap stocks. Including a broader mix of market capitalizations could enhance diversification and possibly improve the risk-return profile of the portfolio.

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.

Considering the Efficient Frontier, there's room to optimize the portfolio for a better risk-return ratio. Currently, the heavy concentration in tech and large-cap stocks offers high growth potential but at increased volatility. By diversifying across more sectors, asset classes, and regions, the portfolio could achieve a more favorable balance of risk and return, potentially enhancing long-term performance without significantly increasing risk.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 0.62%

The portfolio's dividend yield is relatively low, at 0.62%, reflecting its growth-focused strategy over income generation. While reinvesting dividends can contribute to compounding growth over time, investors seeking regular income might consider integrating higher-yielding assets.

Ongoing product costs Info

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

The portfolio's total expense ratio (TER) of 0.13% is impressively low, which is beneficial for long-term growth as it minimizes the drag on performance caused by fees. Keeping costs low is a crucial aspect of maximizing returns, especially in growth-oriented portfolios where every percentage point of return matters.

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