A tech-centric growth portfolio with high exposure to leading US indices and sectors

Report created on Oct 21, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio stands out for its strong focus on the technology sector, with substantial allocations to leading ETFs that track major US indices, including the S&P 500, NASDAQ 100, and specific technology and semiconductor indices. The concentration in technology is complemented by smaller allocations across a range of other sectors, indicating a moderate level of diversification within a growth-oriented strategy. The portfolio's single-asset class focus on stocks, particularly within the tech domain, suggests a deliberate approach to capitalizing on the sector's growth potential while accepting higher volatility.

Growth Info

Historically, this portfolio has demonstrated robust performance with a Compound Annual Growth Rate (CAGR) of 22.32%. The maximum drawdown experienced was -35.49%, highlighting the portfolio's volatility and the inherent risks of concentrating in high-growth sectors. The days contributing most to returns emphasize the portfolio's reliance on significant market movements, which can both positively and negatively impact overall performance. This historical data, while indicative of past success, should be approached with caution as it does not guarantee future results.

Projection Info

Monte Carlo simulations offer a forward-looking perspective, projecting a wide range of potential outcomes based on historical data. With the majority of simulations indicating positive returns and a median projected growth significantly above the initial investment, the portfolio shows promise. However, the broad spread between the 5th and 67th percentiles underscores the high level of uncertainty and risk associated with this growth-focused strategy. It's crucial to understand that these projections are hypothetical and subject to the limitations of past performance as a predictor of future results.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no diversification across other asset classes like bonds or real estate. This singular focus enhances its growth potential but also increases its susceptibility to market volatility. Diversifying across different asset classes can provide a buffer against stock market fluctuations, potentially smoothing out returns over time. For investors seeking growth, a heavy stock allocation is common, but balancing risk through broader asset class exposure could be beneficial.

Sectors Info

  • Technology
    71%
  • Telecommunications
    6%
  • Consumer Discretionary
    6%
  • Financials
    4%
  • Health Care
    4%
  • Industrials
    3%
  • Consumer Staples
    2%
  • Utilities
    1%
  • Energy
    1%
  • Basic Materials
    1%
  • Real Estate
    1%

With 71% of the portfolio concentrated in the technology sector, this allocation underscores a strong conviction in tech's growth prospects. While the tech sector has historically offered substantial returns, this concentration also exposes the portfolio to sector-specific risks, such as regulatory changes or shifts in consumer behavior. The presence of other sectors, albeit in much smaller proportions, provides some diversification, but the heavy tech focus dominates the portfolio's risk and return profile.

Regions Info

  • North America
    94%
  • Asia Developed
    3%
  • Europe Developed
    2%

The geographic allocation is heavily skewed towards North America, specifically the US, with minimal exposure to developed markets in Asia and Europe. This concentration benefits from the US market's historical strength and the global dominance of US tech companies. However, it also limits the portfolio's exposure to potential growth in other regions and increases its vulnerability to US-specific economic downturns. Expanding geographic diversification could mitigate some of these risks and tap into growth opportunities globally.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    37%
  • Mid-cap
    12%
  • Small-cap
    2%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown, favoring mega and big-cap stocks, aligns with its growth and stability objectives. These companies often offer more resilience during market downturns compared to their smaller counterparts. However, the minimal exposure to small and micro-cap stocks limits potential high-growth opportunities these segments may offer. Balancing the allocation to include a broader range of market caps could enhance returns while managing overall risk.

Redundant positions Info

  • Invesco NASDAQ 100 ETF
    Fidelity® MSCI Information Technology Index ETF
    High correlation

The high correlation between the NASDAQ 100 and Information Technology ETFs indicates overlapping exposures, which reduces the diversification benefits within the portfolio. While these assets align with the portfolio's growth focus, their similar performance patterns can amplify losses during tech sector downturns. Reducing overlap by reallocating assets could improve diversification without significantly detracting from the portfolio's growth objectives.

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 this portfolio involves addressing the high correlation between certain assets to improve diversification without compromising growth potential. The Efficient Frontier suggests that there may be opportunities to adjust asset allocations to achieve a better risk-return balance. Focusing on reducing overlap and considering a broader range of asset classes and geographic exposures could enhance the portfolio's resilience and potential for growth.

Dividends Info

  • Fidelity® MSCI Information Technology Index ETF 0.40%
  • Invesco NASDAQ 100 ETF 0.50%
  • VanEck Semiconductor ETF 0.30%
  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 0.60%

The portfolio's overall dividend yield of 0.60% reflects its growth orientation, prioritizing capital appreciation over income generation. While the yields from these ETFs contribute to total returns, they are relatively modest compared to more income-focused investments. For investors seeking growth, this yield level is appropriate, but those requiring regular income might consider adjusting the portfolio to include higher-yielding assets.

Ongoing product costs Info

  • Fidelity® MSCI Information Technology Index ETF 0.08%
  • Invesco NASDAQ 100 ETF 0.15%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.16%

The Total Expense Ratio (TER) of 0.16% is impressively low, especially given the specialized nature of some included ETFs. Keeping costs low is crucial for enhancing long-term returns, as even small differences in fees can significantly impact investment growth over time. This cost efficiency is a strong aspect of the portfolio, supporting better performance by minimizing the drag on returns.

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