A growth-focused portfolio with strong tech exposure and a blend of dividend strategies

Report created on Aug 12, 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 ETFs that track major US indices and sectors, with a significant emphasis on technology stocks. The Invesco NASDAQ 100 ETF and Vanguard S&P 500 ETF together comprise 65% of the portfolio, indicating a strong tilt towards large-cap tech and growth stocks. The inclusion of dividend-focused ETFs adds an income component, though the overall diversification is low, with all investments in stocks and a heavy concentration in a few sectors.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 15.39% and a maximum drawdown of -26.96%, the portfolio has demonstrated strong growth with considerable volatility. The days contributing most to returns indicate significant gains are concentrated in short periods, typical for growth-oriented investments. Comparing this performance to benchmarks would help contextualize these figures, but the high growth rate is promising, albeit with higher risk as indicated by the drawdown.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential outcomes, suggest a wide range of future portfolio values, with a median increase of 554.1%. While this method provides a broad view of potential future performance, it's important to remember that past performance is not indicative of future results. The high percentage of simulations with positive returns underscores the portfolio's growth potential, though the risk of significant drawdowns remains.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is exclusively in stocks, with no exposure to bonds, real estate, or alternative investments. This singular focus on equities enhances growth prospects but also increases volatility and risk, particularly in market downturns. Diversifying across different asset classes could reduce risk without significantly compromising potential returns.

Sectors Info

  • Technology
    38%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Health Care
    9%
  • Financials
    9%
  • Consumer Staples
    7%
  • Industrials
    7%
  • Energy
    4%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    1%

Sector allocation is heavily skewed towards technology, which comprises 38% of the portfolio. While tech stocks have historically provided high returns, this concentration increases vulnerability to sector-specific downturns. The presence of consumer cyclicals, communication services, and healthcare adds some balance, but the overall sector distribution still leans heavily towards high-growth, high-volatility areas.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

Geographically, the portfolio is almost entirely invested in North America, with negligible exposure to international markets. This concentration in the US market can limit diversification benefits and exposure to global growth opportunities. Increasing allocations to developed and emerging markets outside the US could provide a more balanced geographic distribution and access to a wider range of economic drivers.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    37%
  • Mid-cap
    17%
  • Small-cap
    2%

The portfolio favors large-cap stocks, with a combined 81% in mega and big-cap categories. This bias towards larger companies is typical for growth-focused portfolios seeking stability and reduced volatility compared to smaller caps. However, incorporating a broader mix of medium, small, and micro-cap stocks could enhance diversification and potential for higher returns, albeit with increased risk.

Redundant positions Info

  • Schwab U.S. Dividend Equity ETF
    iShares Core Dividend Growth ETF
    High correlation
  • Schwab U.S. Large-Cap Growth ETF
    Invesco NASDAQ 100 ETF
    High correlation

The high correlation between certain ETF pairs, specifically those focused on dividends and large-cap growth, limits the portfolio's diversification benefits. In volatile markets, these correlated assets are likely to move in tandem, increasing the portfolio's risk profile. Rebalancing to include less correlated assets could improve risk management without necessarily sacrificing returns.

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.

Optimizing the portfolio along the Efficient Frontier could improve the risk-return profile by adjusting asset allocations without necessarily increasing risk. This process might involve reducing overlap in highly correlated assets to enhance diversification benefits. While this strategy doesn't guarantee higher returns, it aims for the most efficient use of capital based on historical performance.

Dividends Info

  • iShares Core Dividend Growth ETF 2.20%
  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.28%

The portfolio's dividend yield strategy, with an overall yield of 1.28%, contributes to its income generation while maintaining a focus on growth. This blend allows for reinvestment of dividends into the portfolio, compounding growth over time. However, the relatively low yield from the large-cap growth ETFs suggests a potential review of the balance between growth and income objectives might be warranted.

Ongoing product costs Info

  • iShares Core Dividend Growth ETF 0.08%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.08%

The total expense ratio (TER) of 0.08% is impressively low, minimizing the drag on returns. Keeping costs low is crucial for long-term investment success, especially in growth-oriented portfolios where compound returns can significantly enhance wealth accumulation. The portfolio's cost efficiency is a notable strength, supporting better net performance.

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