Growth-oriented portfolio with a strong focus on US equities and technology sector

Report created on Aug 20, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards US equities, with 80% of its allocation in two major ETFs: the Invesco QQQ Trust and the Vanguard S&P 500 ETF, both of which are known for their focus on large-cap US stocks. The remaining 20% is invested in the Vanguard Total International Stock Index Fund ETF Shares, providing some international exposure. This composition suggests a growth-oriented strategy but with limited diversification across asset classes, as stocks represent 99% of the portfolio.

Growth Info

Historically, this portfolio has demonstrated a robust Compound Annual Growth Rate (CAGR) of 16.50%, although it has experienced a significant maximum drawdown of -30.97%. This performance indicates a high growth potential but comes with substantial volatility. The days contributing to 90% of the returns highlight the portfolio's sensitivity to market highs and lows, emphasizing the need for investors to withstand short-term fluctuations for long-term gains.

Projection Info

Monte Carlo simulations, using historical data to forecast future performance, show a wide range of outcomes with a median increase of 592.2% in portfolio value. This suggests that while there's a high potential for growth, there's also considerable uncertainty, underscoring the importance of being prepared for various market conditions. Remember, these projections are hypothetical and do not guarantee future results.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's almost exclusive focus on stocks (99%) aligns with its growth profile but exposes it to higher market volatility. The minimal cash holding (1%) offers little buffer against market downturns. Diversifying across different asset classes, such as bonds or real estate, could provide more stability during volatile periods without significantly compromising growth potential.

Sectors Info

  • Technology
    37%
  • Consumer Discretionary
    12%
  • Telecommunications
    11%
  • Financials
    10%
  • Industrials
    8%
  • Health Care
    7%
  • Consumer Staples
    6%
  • Basic Materials
    3%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    2%

With 37% allocated to technology, followed by consumer cyclicals and communication services, the portfolio is positioned to benefit from growth in these dynamic sectors. However, this concentration also increases susceptibility to sector-specific risks. Balancing with investments in more defensive sectors like healthcare or consumer defensive could reduce volatility without drastically altering the growth trajectory.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation is heavily skewed towards North America (81%), with modest exposure to international markets. This focus has likely contributed to the portfolio's strong performance, given the robust US market. However, increasing international exposure, especially to emerging markets, could enhance diversification and potentially capture higher growth rates abroad.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    33%
  • Mid-cap
    15%
  • Small-cap
    1%

A significant portion of the portfolio is invested in mega (50%) and big (33%) cap stocks, which are typically less volatile than smaller companies but might offer lower growth potential. Incorporating a greater mix of medium and small-cap stocks could increase growth prospects, albeit with added risk.

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 Efficient Frontier, there may be opportunities to optimize the portfolio for a better risk-return trade-off. This might involve adjusting the asset allocation to include a broader range of asset classes or rebalancing sector and geographic exposures. Optimization aims to achieve the most desirable returns for a given level of risk.

Dividends Info

  • Invesco QQQ Trust 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.22%

The portfolio's dividend yield stands at an average of 1.22%, with the highest yield from the Vanguard Total International Stock Index Fund ETF Shares. While dividends contribute to total returns, the focus on growth-oriented assets naturally results in a lower yield. Investors looking for income in addition to growth might consider reallocating a portion towards higher-yielding assets.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.10%

The portfolio benefits from relatively low costs, with a total expense ratio (TER) of 0.10%, which is favorable for long-term growth. Lower costs mean more of the investment's return is retained by the investor. Maintaining focus on cost-efficient funds will continue to be advantageous.

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