A tech-centric growth portfolio with high concentration in technology ETFs and limited diversification

Report created on Dec 2, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily concentrated in the technology sector, with 100% of its assets in technology-related ETFs. The allocation includes 40% in iShares U.S. Technology ETF, 30% in VanEck Semiconductor ETF, 20% in Vanguard Information Technology Index Fund ETF Shares, and 10% in Invesco NASDAQ 100 ETF. This composition reflects a strong focus on growth within the tech industry but comes with low diversification across sectors and asset classes.

Growth Info

Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 24.08%, with a significant maximum drawdown of -39.92%. This suggests that while the portfolio has experienced substantial growth, it has also faced considerable volatility, with periods of sharp declines. The days contributing to 90% of returns highlight the portfolio's susceptibility to short-term market movements.

Projection Info

Monte Carlo simulations, utilizing 1,000 iterations, indicate a wide range of potential outcomes for this portfolio. The median projection suggests a 1,468.6% return, with a 5th percentile at 151.8% and a 67th percentile at 2,427.8%. These simulations underscore the portfolio's high growth potential but also its significant risk, given the broad spread between potential outcomes.

Asset classes Info

  • Stocks
    100%

The portfolio's asset class composition is entirely in stocks, with no allocation to cash or other asset classes. This singular focus on equities, particularly within technology, underscores the portfolio's aggressive growth orientation but also its lack of diversification, which could mitigate risk.

Sectors Info

  • Technology
    91%
  • Telecommunications
    6%
  • Consumer Discretionary
    2%
  • Industrials
    1%

With 91% of the portfolio allocated to technology, and minor allocations to communication services and consumer cyclicals, the sectoral concentration is extremely high. This concentration in technology and related sectors can amplify returns during tech bull markets but also increases vulnerability to sector-specific downturns.

Regions Info

  • North America
    94%
  • Asia Developed
    3%
  • Europe Developed
    2%

The geographic allocation is predominantly North American (94%), with minimal exposure to developed markets in Asia (3%) and Europe (2%). This geographic concentration mirrors the portfolio's sectoral focus, potentially limiting global diversification benefits and increasing exposure to regional market risks.

Market capitalization Info

  • Mega-cap
    52%
  • Large-cap
    36%
  • Mid-cap
    9%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown, with 52% in mega-cap, 36% in big-cap, and smaller allocations to medium, small, and micro-cap stocks, indicates a preference for large, established companies. This can provide some stability within the tech focus but still carries the sector-specific risks.

Redundant positions Info

  • iShares U.S. Technology ETF
    Invesco NASDAQ 100 ETF
    Vanguard Information Technology Index Fund ETF Shares
    High correlation

The high correlation among the portfolio's assets, particularly between the iShares U.S. Technology ETF, Invesco NASDAQ 100 ETF, and Vanguard Information Technology Index Fund ETF Shares, suggests redundancy. This lack of diversification can limit the portfolio's ability to mitigate risk through asset allocation.

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.

Given the portfolio's high concentration and asset correlation, optimizing for risk versus return could involve diversifying beyond the technology sector and reducing overlap among the holdings. This could help achieve a more balanced risk-return profile, even within a growth-focused strategy.

Dividends Info

  • iShares U.S. Technology ETF 0.10%
  • Invesco NASDAQ 100 ETF 0.50%
  • VanEck Semiconductor ETF 0.30%
  • Vanguard Information Technology Index Fund ETF Shares 0.40%
  • Weighted yield (per year) 0.26%

The dividend yield across the portfolio averages to 0.26%, reflecting the growth-oriented nature of the investments. While dividends contribute to total returns, the primary focus here is on capital appreciation within the tech sector, which typically reinvests profits rather than distributing them as dividends.

Ongoing product costs Info

  • iShares U.S. Technology ETF 0.40%
  • Invesco NASDAQ 100 ETF 0.15%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Weighted costs total (per year) 0.30%

The portfolio's total expense ratio (TER) averages to 0.30%, which is relatively low, helping to preserve returns over the long term. Keeping costs low is crucial in maximizing the efficiency of growth-oriented portfolios, especially when concentrated in a single sector.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey