Growth-focused portfolio with a strong tilt towards technology and S&P 500 momentum

Report created on Sep 9, 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 weighted towards equities, with a significant concentration in technology and S&P 500 momentum stocks via ETFs. The Vanguard S&P 500 ETF constitutes half of the portfolio, providing broad exposure to the largest U.S. companies. The Invesco S&P 500® Momentum ETF and Vanguard Information Technology Index Fund ETF Shares each make up a quarter of the portfolio, emphasizing growth through tech and momentum strategies. This composition reflects a clear growth orientation but with low diversification across asset classes and sectors.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 21.36%, with a maximum drawdown of -32.56%. This performance indicates robust growth potential but comes with significant volatility, as evidenced by the substantial drawdown. The days contributing to 90% of returns being limited to 39 highlights the portfolio's reliance on short bursts of significant gains, which is characteristic of growth-focused investments.

Projection Info

Monte Carlo simulations, which use historical data to forecast future outcomes, suggest a wide range of potential future performances for this portfolio. With all simulations showing positive returns and a median projected growth of 1,704.7%, the portfolio demonstrates high growth potential. However, the broad range between the 5th and 67th percentiles (from 356.6% to 2,426.8%) underscores the high risk and uncertainty inherent in this growth strategy.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no exposure to other asset classes such as bonds, real estate, or commodities. This allocation supports a high-growth strategy but increases risk by lacking diversification across different asset types that can offer stability during stock market downturns.

Sectors Info

  • Technology
    48%
  • Financials
    12%
  • Consumer Discretionary
    9%
  • Telecommunications
    9%
  • Industrials
    6%
  • Health Care
    5%
  • Consumer Staples
    5%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    1%
  • Basic Materials
    1%

A 48% allocation to technology underscores the portfolio's aggressive growth stance, given the sector's historical performance and volatility. Other significant allocations include financial services and consumer cyclicals, which can offer growth but also add to volatility. The minimal presence of traditionally defensive sectors like healthcare and consumer defensive indicates a trade-off between maximum growth potential and stability.

Regions Info

  • North America
    100%

The portfolio's exclusive investment in North American assets, particularly in the U.S., provides strong growth opportunities but lacks geographic diversification. This concentration increases exposure to region-specific economic and political risks, which could be mitigated by incorporating investments from other regions.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    32%
  • Mid-cap
    15%
  • Small-cap
    2%
  • Micro-cap
    1%

The focus on mega and big-cap stocks (82% combined) aligns with the portfolio's growth and stability objectives, as these companies generally offer solid financials and market dominance. However, the minimal exposure to small and micro-cap stocks limits potential high-growth opportunities from emerging 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.

Utilizing the Efficient Frontier concept could offer insights into achieving the best possible risk-return balance. While the current allocation emphasizes growth, there might be room to optimize for a more favorable risk-return profile without significantly compromising growth potential. This optimization would involve adjusting the asset allocation to include a broader mix of sectors or asset classes.

Dividends Info

  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Information Technology Index Fund ETF Shares 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.85%

The portfolio's dividend yield averages 0.85%, which is modest. This yield reflects the growth-focused nature of the portfolio, where capital appreciation is prioritized over income. Investors seeking regular income might find this yield lower than desired, but it is typical for portfolios emphasizing growth.

Ongoing product costs Info

  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.07%

With a total expense ratio (TER) of 0.07%, the portfolio benefits from low costs, which is commendable. Lower costs translate to higher net returns over time, making this an efficient growth portfolio from a cost perspective. This efficiency is a positive aspect, especially in growth-oriented strategies where every percentage point of return counts.

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