Growth-oriented portfolio with high tech exposure and global diversification

Report created on Aug 3, 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 predominantly invested in equities, with a significant 60% allocation to a broad U.S. stock market ETF and 20% in an international stock ETF. A notable 15% is invested in a single technology company, NVIDIA, highlighting a strong tilt towards the tech sector. The remaining 5% is in a NASDAQ 100 ETF, further emphasizing tech exposure. This composition reflects a growth-focused strategy, leveraging the potential high returns of the tech industry, while also maintaining a degree of global diversification.

Growth Info

Historically, the portfolio has exhibited a Compound Annual Growth Rate (CAGR) of 21.17%, with a maximum drawdown of -35.29%. These figures suggest a high-reward but also high-risk profile, as evidenced by the portfolio's risk score of 5 out of 7. The days contributing to 90% of returns being concentrated in just 28 days further underscores the portfolio's volatility and the significant impact of short-term gains.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, indicate a wide range of potential portfolio values. With 998 out of 1,000 simulations showing positive returns, the median projected increase is substantial. However, the broad spread between the 5th and 67th percentiles highlights the uncertainty and risk involved. These projections are useful for understanding potential outcomes, but it's important to remember they are based on past performance, which is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is almost entirely in stocks (99%), with a minimal cash position (1%). This aligns with its growth profile but comes with higher volatility and risk compared to more balanced allocations. Diversifying across different asset classes could reduce risk without significantly compromising potential returns.

Sectors Info

  • Technology
    39%
  • Financials
    13%
  • Consumer Discretionary
    9%
  • Industrials
    9%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    2%

With 39% of the portfolio in technology, there's a heavy concentration in one sector, which can lead to higher volatility. While the tech sector has historically provided strong returns, it's also susceptible to large swings. The portfolio's sector allocation shows a mix of other industries, but the dominant tech exposure requires careful monitoring, especially during market downturns or sector-specific setbacks.

Regions Info

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

The geographic allocation is heavily skewed towards North America (81%), with modest exposure to developed Europe (8%) and emerging Asian markets (3%). This concentration in North American markets, particularly the U.S., reflects a common approach for growth-focused investors but could benefit from greater diversification to mitigate region-specific risks and capture global growth opportunities.

Market capitalization Info

  • Mega-cap
    51%
  • Large-cap
    26%
  • Mid-cap
    16%
  • Small-cap
    5%
  • Micro-cap
    1%

The focus on mega (51%) and big (26%) cap stocks aligns with the portfolio's growth and risk profile, as these companies often offer more stability and potential for growth than smaller companies. However, the inclusion of medium, small, and micro caps, albeit in smaller proportions, contributes to diversification and could offer higher growth potential albeit with increased 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 allocation suggests a well-considered approach to balancing growth potential with risk, as indicated by its performance and diversification scores. However, the portfolio may benefit from periodic reassessment to ensure it remains on the Efficient Frontier, the theoretical line of optimal portfolios offering the highest expected return for a given level of risk. Adjusting allocations could further optimize the risk-return profile.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.32%

The dividend yields from the ETFs and NVIDIA provide a supplementary income stream, contributing to the portfolio's total yield of 1.32%. While growth-focused portfolios often prioritize capital appreciation over income, these dividends offer a modest cushion during market downturns and can be reinvested to compound growth.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

The portfolio's overall expense ratio (TotalTER) of 0.04% is impressively low, maximizing the potential for net returns. Keeping costs low is crucial for long-term investment success, as even small differences in fees can have a significant impact on compound growth over time.

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