A tech-centric balanced portfolio with high exposure to large-cap US equities

Report created on Oct 9, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily weighted towards technology, with nearly half invested in the Invesco NASDAQ 100 ETF, emphasizing large-cap tech companies. The Schwab U.S. Dividend Equity ETF and Invesco S&P 500® Momentum ETF complement this focus, adding a mix of dividend-paying and high-momentum stocks. The concentration in just three ETFs, all within the stock asset class, indicates a low level of diversification across asset types, though it spans several sectors.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 15.61%, with a significant maximum drawdown of -24.89%. This performance suggests a relatively high return but comes with substantial volatility, as indicated by the drawdown. The days contributing to 90% of the returns being concentrated in just 23 days highlights the portfolio's dependency on short-term gains, which can be risky.

Projection Info

Using Monte Carlo simulation, which projects future performance based on historical data, the portfolio shows a wide range of outcomes. The median projection suggests a significant potential for growth (733.3% increase), but the wide spread between the 5th and 67th percentiles (128.3% to 1,061.7%) underscores the high uncertainty and risk involved. It's important to remember that these projections are speculative and depend heavily on past performance, which is not always indicative of future results.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no exposure to other asset classes like bonds or real estate. This singular focus on equities enhances potential returns but also increases risk, especially in market downturns. Diversifying across asset classes can help mitigate this risk and provide more stable long-term growth.

Sectors Info

  • Technology
    35%
  • Telecommunications
    12%
  • Consumer Discretionary
    11%
  • Consumer Staples
    10%
  • Health Care
    9%
  • Energy
    8%
  • Industrials
    7%
  • Financials
    6%
  • Basic Materials
    1%
  • Utilities
    1%

The sectoral allocation shows a strong preference for technology, communication services, and consumer cyclicals, which are sectors known for their growth potential but also for their volatility. The underrepresentation of traditionally defensive sectors like utilities and real estate could make the portfolio more susceptible to market swings.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

Almost entirely focused on North American equities, the portfolio has minimal exposure to international markets. This geographic concentration may limit diversification benefits and exposure to global growth opportunities, particularly in emerging markets.

Market capitalization Info

  • Large-cap
    43%
  • Mega-cap
    33%
  • Mid-cap
    20%
  • Small-cap
    3%
  • Micro-cap
    1%

With a focus on big and mega-cap companies, the portfolio is positioned to benefit from the stability and growth potential of large corporations. However, the limited exposure to small and micro-cap stocks could mean missing out on the higher growth potential these companies can offer, albeit with higher 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.

The current portfolio shows a strong focus on growth through tech-heavy and large-cap equities, which has historically provided high returns. However, optimization using the Efficient Frontier could suggest a reallocation to include assets with lower correlation, improving the risk-return profile. This approach seeks to maximize returns for a given level of risk but does not account for individual investment goals or the benefits of diversification beyond volatility reduction.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Weighted yield (per year) 1.80%

The portfolio's dividend yield is skewed by the high yield of the Schwab U.S. Dividend Equity ETF. While dividends contribute to the portfolio's overall return, the focus on growth-oriented tech ETFs means the overall yield is moderate. Investors should consider their need for income vs. growth in their investment strategy.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.11%

The portfolio benefits from relatively low costs, with a Total Expense Ratio (TER) of 0.11%. Lower costs contribute to higher net returns over time, making this an efficient portfolio from a cost perspective. However, investors should balance cost considerations with the need for diversification and risk management.

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