Growth-focused portfolio with high concentration in tech and large-cap stocks
Report created on Jul 26, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
QQ Invesco NASDAQ 100 ETF
QQQM - US46138G6492 70.00% -
VO Vanguard S&P 500 ETF
VOO - US9229083632 30.00%
This portfolio is highly concentrated with 70% in the Invesco NASDAQ 100 ETF and 30% in the Vanguard S&P 500 ETF, signaling a strong preference for large-cap and tech-heavy investments. The allocation reflects a growth-oriented strategy, given the significant weight in sectors like technology and consumer cyclicals. However, this concentration also suggests limited diversification across sectors and asset classes, as it is entirely composed of stocks, primarily from North America.
Growth
The portfolio has shown a Compound Annual Growth Rate (CAGR) of 16.59%, with a maximum drawdown of -31.77%. This performance indicates a high growth potential but comes with considerable volatility, as evidenced by the significant drawdown. The days contributing 90% of returns being so few suggests that the portfolio's gains are heavily reliant on exceptional market days, underscoring the importance of staying invested through market cycles for growth investors.
Projection
Monte Carlo simulations, using historical data to forecast potential outcomes, suggest a wide range of future portfolio values. With 993 out of 1,000 simulations showing positive returns, the portfolio has a strong likelihood of future growth. However, the wide spread between the 5th and 67th percentiles (106.6% to 972.8% growth) highlights the uncertainty and risk involved in such a growth-focused strategy.
Asset classes
- Stocks 100%
The portfolio is entirely invested in stocks, with no allocation to bonds, real estate, or alternative assets. This singular focus on equities enhances growth potential but also increases risk, especially in market downturns. Diversifying across different asset classes can provide a buffer against stock market volatility and contribute to more stable long-term returns.
Sectors
- Technology 47%
- Telecommunications 14%
- Consumer Discretionary 13%
- Health Care 6%
- Consumer Staples 5%
- Industrials 5%
- Financials 4%
- Utilities 2%
- Basic Materials 1%
- Energy 1%
- Real Estate 1%
The sector allocation is heavily skewed towards technology, followed by communication services and consumer cyclicals. This composition aligns with a growth strategy but may be susceptible to sector-specific risks, such as regulatory changes or shifts in consumer behavior. Diversifying across a broader range of sectors could help mitigate these risks.
Regions
- North America 98%
- Europe Developed 1%
- Latin America 1%
With 98% of assets in North America, the portfolio's geographic exposure is highly concentrated. This focus has likely contributed to its strong performance, given the robust growth of the US stock market. However, it also exposes the portfolio to regional economic and political risks. Expanding geographic diversification could reduce these risks and tap into growth opportunities in other markets.
Market capitalization
- Mega-cap 52%
- Large-cap 33%
- Mid-cap 13%
The emphasis on mega and big-cap stocks (85% combined) supports the portfolio's growth and stability objectives, as these companies tend to be more established and less volatile than smaller counterparts. However, including a small allocation to mid and small-cap stocks could enhance potential for higher returns, 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.
Considering the portfolio's current allocation, there's room for optimization towards the Efficient Frontier, where the risk-return ratio is most favorable. This doesn't necessarily mean a complete overhaul but rather a strategic rebalancing to include a wider variety of asset classes and geographic exposures. Such adjustments could improve diversification without significantly detracting from the portfolio's growth potential.
Dividends
- Invesco NASDAQ 100 ETF 0.50%
- Vanguard S&P 500 ETF 1.20%
- Weighted yield (per year) 0.71%
The portfolio's dividend yield of 0.71% reflects a moderate income component, which can contribute to total returns, especially in volatile or down markets. While the focus is clearly on growth, investors should consider the role of dividends in achieving a balanced return profile.
Ongoing product costs
- Invesco NASDAQ 100 ETF 0.15%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.11%
With a total expense ratio (TER) of 0.11%, the portfolio is efficiently managed in terms of costs. Low costs are crucial for enhancing long-term returns, as they compound over time. This aspect of the portfolio is commendably optimized, aligning with best practices for long-term investment success.
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