A growth-focused portfolio with heavy emphasis on technology and high concentration in IBM

Report created on Aug 1, 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 characterized by a significant concentration in International Business Machines (IBM) at over 60%, followed by allocations in the Invesco QQQ Trust, Palantir Technologies, Invesco S&P 500® Momentum ETF, and NVIDIA Corporation. The overwhelming majority of the portfolio is invested in technology, with a total exposure to stocks at 100% and a clear absence of diversification across other asset classes, sectors, and geographies. This heavy concentration in a single stock and sector increases the portfolio's susceptibility to specific market risks.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 29.60%, with a maximum drawdown of -26.27%. The performance indicates a high growth potential, albeit with significant risk, as evidenced by the substantial drawdown. The days contributing to 90% of the returns are notably few, suggesting that the portfolio's performance is highly dependent on short-term gains from a handful of positions.

Projection Info

The Monte Carlo analysis, with 1,000 simulations, shows a wide range of potential outcomes, with the 50th percentile predicting an 11,526.7% return. While the analysis suggests a strong growth potential, it's important to note that such projections are based on historical data and cannot guarantee future performance. The high annualized return of all simulations at 54.43% further emphasizes the portfolio's aggressive growth orientation.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks, without any allocation to bonds, real estate, or other asset classes, highlights a strategy focused on capital appreciation over income or stability. This approach is suitable for investors with a high-risk tolerance but limits opportunities for risk mitigation through diversification.

Sectors Info

  • Technology
    86%
  • Telecommunications
    4%
  • Consumer Discretionary
    4%
  • Consumer Staples
    2%
  • Industrials
    1%
  • Health Care
    1%
  • Financials
    1%

With 86% of the portfolio in technology, followed by minor allocations to communication services and consumer cyclicals, the sectoral distribution underscores the portfolio's bet on tech-driven growth. While the technology sector can offer high returns, it also comes with increased volatility and sector-specific risks, such as regulatory challenges and rapid obsolescence.

Regions Info

  • North America
    99%

The geographic allocation is almost exclusively North American, with a negligible presence in other regions. This concentration in a single geography exposes the portfolio to regional economic and political risks, missing out on potential opportunities and risk mitigation benefits of global diversification.

Market capitalization Info

  • Mega-cap
    88%
  • Large-cap
    9%
  • Mid-cap
    3%

The focus on mega-cap stocks (88%) aligns with the portfolio's growth profile, as these companies often have more stable earnings and global recognition. However, the minimal exposure to small and medium-cap stocks limits potential high-growth opportunities in 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.

Considering the portfolio's current allocation and risk-return profile, there's an opportunity to optimize it towards the Efficient Frontier by diversifying across more sectors, asset classes, and geographies. This optimization aims to achieve a better balance between risk and return, potentially enhancing the portfolio's resilience against market volatility.

Dividends Info

  • International Business Machines 2.60%
  • Invesco QQQ Trust 0.50%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Weighted yield (per year) 1.70%

The overall dividend yield of 1.70% indicates a moderate contribution to total returns from dividends. While the yield from IBM is relatively higher, the portfolio's focus is clearly on capital appreciation rather than income, which is consistent with its growth orientation.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.05%

The portfolio costs, represented by Total Expense Ratios (TER) of the ETFs, are relatively low, enhancing net returns. The focus on low-cost ETFs alongside individual stocks is a prudent strategy to maximize returns without incurring excessive fees.

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