Highly concentrated growth portfolio focused on communication services and semiconductors with strong historic returns
Report created on Mar 24, 2026Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
Positions
-
TT Take-Two Interactive Software Inc
TTWO - US8740541094 42.43% -
XL Communication Services Select Sector SPDR® Fund
XLC - US81369Y8527 31.85% -
SM VanEck Semiconductor ETF
SMH - US92189F6768 16.68% -
GO Alphabet Inc Class A
GOOGL - US02079K3059 9.04%
This portfolio is extremely concentrated, with just four positions and over 40% in a single stock. All assets are equities, with roughly one third in a broad communication-services ETF, another chunk in a semiconductor ETF, and the rest in two individual growth names. That means returns will be driven by a small set of companies and themes rather than the broader market. Concentration can supercharge gains but also magnifies setbacks when one holding struggles. For someone using this structure, it’s worth being very deliberate: treat this more like a focused, high-conviction “satellite” allocation rather than something meant to mirror a wide, diversified core.
Growth
Historically, performance has been very strong: an example $1,000 grew to about $3,215, beating both the U.S. and global market benchmarks over the same period. The portfolio’s compound annual growth rate (CAGR), which is the average yearly growth rate over time, is 18.37% versus 13.53% for the U.S. market. The trade-off is deeper pain during downturns: max drawdown hit about -43%, noticeably worse than the roughly -34% for the benchmarks. This pattern—higher long‑term growth plus sharper drops—is typical for concentrated growth-tilted setups and needs an investor who can sit through big swings without panicking.
Projection
The Monte Carlo projection uses historical returns and volatility to simulate 1,000 possible futures for the next 10 years. Think of it as running the past return pattern through a “shuffle and remix” engine to see a range of plausible outcomes. The median scenario shows very strong cumulative growth, and a large majority of simulations end positive. Still, even the 5th percentile, at about 63% total growth, reminds us outcomes can land far below the median. Simulations rely on history repeating in broad strokes, which it never does perfectly, so they’re best viewed as a rough map of risk and reward rather than a precise forecast.
Asset classes
- Stocks 100%
All capital here is in one asset class: stocks. There’s no built‑in ballast from bonds, cash, or other diversifiers that might cushion volatility. That’s totally workable for someone with a long horizon and a strong stomach for swings, but it does set expectations: in rough equity markets, everything here is likely to move down together. Compared with a more mixed stock‑bond blend, this structure leans fully into growth potential at the cost of stability. One practical takeaway is that overall household finances (emergency fund, job stability, time horizon) need to do the risk‑buffering that bonds or cash would otherwise provide.
Sectors
- Telecommunications 83%
- Technology 17%
Sector‑wise, the portfolio is dominated by communication services at about 83%, with the remainder in technology. That’s a serious tilt toward a narrow slice of the market compared with broad benchmarks, which typically spread across many sectors like healthcare, financials, and industrials. Communication and tech‑related names often behave like classic growth stories: very sensitive to earnings expectations, interest rates, and sentiment toward digital platforms and chips. When those themes are in favor, returns can be excellent, as your history shows. When the narrative turns, though, drawdowns can be sharp because there’s little offset from more defensive sectors.
Regions
- North America 97%
- Asia Developed 2%
- Europe Developed 1%
Geographically, the exposure is overwhelmingly North American at 97%, with only tiny amounts in developed Asia and Europe. That means results will track closely with U.S. and Canadian equity cycles and policy environments, which have been favorable over the last decade. Global benchmarks usually have a noticeably larger allocation outside North America, so this is a sizable home‑region tilt. The benefit is familiarity and alignment with the dominant global market. The flip side is less diversification across different economic regimes and currencies. If North America underperforms for an extended stretch, there isn’t much international exposure here to potentially smooth the ride.
Market capitalization
- Large-cap 59%
- Mega-cap 29%
- Mid-cap 10%
- Small-cap 1%
Market‑cap exposure is skewed toward mega and big‑cap names, together close to 90% of the portfolio. That lines up well with how global indices are constructed, where the largest companies dominate index weightings and drive most of the returns. This is actually a nice alignment with benchmark structure and helps reduce some of the idiosyncratic risk that comes from tiny, speculative companies. There is a touch of mid and small caps, but they’re marginal in impact. The key takeaway: risk here is more about sector and stock concentration than about a wild small‑cap tilt, which is a relatively comfortable place to be for growth‑oriented investors.
True holdings
-
TT Take-Two Interactive Software Inc 43.67%
Part of fund(s):- Communication Services Select Sector SPDR® Fund
-
GO Alphabet Inc Class A 12.41%
Part of fund(s):- Communication Services Select Sector SPDR® Fund
-
ME Meta Platforms Inc. 6.02%
Part of fund(s):- Communication Services Select Sector SPDR® Fund
-
NV NVIDIA Corporation 3.07%
Part of fund(s):- VanEck Semiconductor ETF
-
GO Alphabet Inc Class C 2.69%
Part of fund(s):- Communication Services Select Sector SPDR® Fund
-
VZ Verizon Communications Inc 1.88%
Part of fund(s):- Communication Services Select Sector SPDR® Fund
-
NF Netflix Inc 1.82%
Part of fund(s):- Communication Services Select Sector SPDR® Fund
-
TS Taiwan Semiconductor Manufacturing 1.78%
Part of fund(s):- VanEck Semiconductor ETF
-
T AT&T Inc 1.66%
Part of fund(s):- Communication Services Select Sector SPDR® Fund
-
TM T-Mobile US Inc 1.62%
Part of fund(s):- Communication Services Select Sector SPDR® Fund
- Top 10 total 76.60%
Looking through the ETFs, the real story is hidden overlap. Take‑Two accounts for about 44% once you include its appearance inside funds, and Alphabet totals more than 12% when you add direct and ETF exposure. Big platform names like Meta, NVIDIA, and TSMC all show up via the ETFs too. Overlap means the portfolio is less diversified than the ticker count suggests, because the same companies keep showing up in different wrappers. That’s not inherently bad if those bets are intentional, but it does mean outcomes are heavily tied to a fairly small club of large-cap growth and communication-related businesses.
Factors
On investment factors—the characteristics research links to returns—the portfolio tilts toward low volatility, momentum, and value, with some exposure to quality and yield. Factor exposure is like checking which “personality traits” your holdings share: momentum means riding recent winners, low volatility means generally steadier names, and value points to cheaper valuations. A mix of momentum and low volatility can help in choppy markets, but factor readings rely on historical relationships and partial data coverage here is around 60%. That means signals are helpful but not perfect. It’s encouraging that exposures aren’t extreme in only one factor; they show a somewhat blended style rather than an all‑in bet.
Risk contribution
-
Take-Two Interactive Software Inc
Weight: 42.43% 51.1% -
Communication Services Select Sector SPDR® Fund
Weight: 31.85% 23.8% -
VanEck Semiconductor ETF
Weight: 16.68% 17.2% -
Alphabet Inc Class A
Weight: 9.04% 7.9%
Risk contribution shows how much each position drives the portfolio’s overall ups and downs, which can differ from its simple weight. Here, Take‑Two is 42% of the capital but over 51% of the total risk, meaning its behavior dominates outcomes. The top three positions together contribute more than 90% of portfolio risk, so what happens to them largely is what happens to the portfolio. That’s classic concentrated‑bet territory. If that concentration is purposeful, it calls for strong conviction and a long horizon. If it’s more accidental, adjusting position sizes or adding offsetting holdings could spread risk more in line with a desired comfort level.
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.
On the risk–return chart, the portfolio sits on the efficient frontier, meaning that for its current mix of holdings, it’s using them in a generally efficient way. The Sharpe ratio—a measure of return per unit of risk—is solid but not the highest achievable with these same components. The “optimal” and same‑risk optimized portfolios would take on a bit more risk yet meaningfully higher expected return by reweighting among your existing positions, without adding new ones. That’s encouraging: you’re already efficient, and there’s theoretical room for improvement if you ever want to lean harder into the risk/return sweet spots identified by the model.
Dividends
- Alphabet Inc Class A 0.30%
- VanEck Semiconductor ETF 0.30%
- Communication Services Select Sector SPDR® Fund 1.20%
- Weighted yield (per year) 0.46%
The yield is modest at about 0.46%, with the main contribution coming from the communication‑services ETF. Dividend yield is simply the annual cash payout as a percentage of the portfolio value, and at this level it’s more of a small bonus than a central return driver. This setup is clearly geared toward capital appreciation rather than income. That’s usually aligned with growth positioning and long horizons, but it does mean you’re relying heavily on price gains rather than regular cash flows. For anyone eventually wanting income, this kind of structure might serve as a growth engine that could later be complemented by higher‑yielding assets.
Ongoing product costs
- VanEck Semiconductor ETF 0.35%
- Communication Services Select Sector SPDR® Fund 0.09%
- Weighted costs total (per year) 0.09%
Costs are impressively low, with a total TER of about 0.09% driven by very cheap exposure in the communication‑services ETF and only slightly higher fees in the semiconductor ETF. TER (total expense ratio) is basically the annual management fee as a percentage of your investment. Keeping this down is one of the few things investors can control and has a big impact over decades due to compounding. Here, fee drag is minimal, which is a real strength and aligns with best practices found in evidence‑based investing. It means more of the portfolio’s returns stay in your pocket instead of being eaten by fund expenses.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey