A growth-focused portfolio with heavy technology sector exposure and moderate global diversification

Report created on Nov 16, 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 weighted towards stock ETFs, with a significant emphasis on the U.S. market, comprising 60% in a broad market ETF, 15% in a NASDAQ-focused ETF, and another 15% in a growth-oriented ETF. The remaining 10% is allocated to international stocks. This composition aligns with a growth-focused strategy but has a notable concentration in the technology sector and large-cap stocks, which could affect volatility and risk.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 15.23%, with a maximum drawdown of -28.54%. These figures indicate strong past performance but also suggest potential for significant volatility, as evidenced by the drawdown. It's crucial to understand that while high returns can be attractive, they often come with increased risk.

Projection Info

Using Monte Carlo simulations, the forward projection offers a wide range of potential outcomes, with the median scenario suggesting substantial growth. However, it's important to remember that such simulations are based on historical data and assumptions, which cannot fully predict future market conditions. Diversification and regular portfolio reviews remain key to managing risk in light of these uncertainties.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's near-exclusive focus on stocks, with a 99% allocation, underscores its growth orientation but also highlights a lack of diversification across asset classes. Including different asset classes, such as bonds or real estate, could provide a buffer against stock market volatility and contribute to a more balanced risk-return profile.

Sectors Info

  • Technology
    38%
  • Consumer Discretionary
    12%
  • Financials
    11%
  • Telecommunications
    11%
  • Industrials
    8%
  • Health Care
    8%
  • Consumer Staples
    4%
  • Energy
    2%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Utilities
    2%

The technology sector's dominance at 38% reflects a strong growth bias but introduces sector-specific risks, including potential volatility from market sentiment shifts or regulatory changes. The portfolio's sectoral distribution aligns with its growth objectives, yet diversifying into additional sectors could mitigate risks and stabilize returns over time.

Regions Info

  • North America
    90%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%

With 90% of assets in North America, the portfolio's geographic exposure is heavily skewed towards the U.S. market. While this concentration has likely contributed to its robust historical performance, given the U.S. market's strong past returns, it also exposes the portfolio to region-specific risks. Increasing exposure to other developed and emerging markets could enhance diversification and potentially unlock new growth avenues.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    30%
  • Mid-cap
    17%
  • Small-cap
    4%
  • Micro-cap
    1%

The focus on mega and big-cap stocks, making up 77% of the portfolio, aligns with its growth and stability goals. These companies are typically more resilient during market downturns. However, incorporating a broader mix of medium, small, and micro-cap stocks could offer higher growth potential and further diversification benefits.

Redundant positions Info

  • Invesco NASDAQ 100 ETF
    Vanguard Growth Index Fund ETF Shares
    High correlation

The high correlation between the Invesco NASDAQ 100 ETF and the Vanguard Growth Index Fund ETF Shares indicates overlapping investments, particularly in the technology sector, which may limit diversification benefits. Diversifying into assets with lower correlations can help spread risk more effectively across 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.

The portfolio's current concentration in highly correlated assets suggests room for optimization, particularly by reducing overlap to improve diversification without necessarily sacrificing growth potential. Applying principles from the Efficient Frontier could help in achieving a more optimal risk-return balance by adjusting the allocation among the current assets.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.06%

The portfolio's average dividend yield of 1.06% reflects its growth orientation over income generation. While the focus on growth is appropriate for certain investment goals, incorporating higher-yielding assets could provide a steady income stream and potentially reduce volatility through dividend reinvestment or as a buffer during market downturns.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.05%

The overall portfolio cost, represented by a Total Expense Ratio (TER) of 0.05%, is impressively low, which is beneficial for long-term growth as it minimizes the drag on returns. Keeping costs low is a solid strategy for enhancing net returns, especially important in growth-focused portfolios where compounding plays a significant role.

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