A growth-focused portfolio with heavy tech exposure and strong historical returns

Report created on May 6, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is predominantly invested in equities, with nearly half of its value in a single ETF tracking the S&P 500. The inclusion of specific tech companies like NVIDIA and ServiceNow, alongside Tesla, indicates a clear tilt towards technology and innovation-driven stocks. The presence of a real estate company and a dividend-focused ETF adds a layer of income generation, albeit on a smaller scale. The overall composition suggests a strategy aiming for growth, leveraging both broad market exposure and targeted bets on high-growth sectors.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 22.47% and a maximum drawdown of -55.82%, the portfolio has demonstrated a strong performance with significant volatility. The days contributing to 90% of returns being limited to 51 indicates that the portfolio's gains are highly concentrated in specific periods, underscoring the impact of market timing and the inherent risks in a growth-oriented strategy. Comparing these figures to benchmarks would be essential for understanding relative performance, especially during downturns.

Projection Info

The Monte Carlo simulation, which uses historical data to forecast future outcomes, suggests a wide range of potential returns, with a median annualized return of 28.71%. While these projections are optimistic, it's important to remember that such simulations are based on past trends, which may not always predict future movements accurately. Investors should consider this variability in potential outcomes, especially given the portfolio's high risk score.

Asset classes Info

  • Stocks
    100%

This portfolio is entirely allocated to stocks, reflecting a high-risk, high-reward approach consistent with a growth investment strategy. While this concentration in equities can offer substantial returns, it also exposes investors to significant market volatility. Diversification across different asset classes could provide a buffer against this volatility, potentially smoothing out returns over time without dramatically compromising growth.

Sectors Info

  • Technology
    41%
  • Consumer Discretionary
    13%
  • Financials
    11%
  • Health Care
    7%
  • Industrials
    6%
  • Telecommunications
    6%
  • Consumer Staples
    4%
  • Real Estate
    4%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%

The sector allocation is heavily weighted towards technology, making up 41% of the portfolio. This concentration in a single sector increases the portfolio's sensitivity to the performance of the tech industry, which can be both a source of substantial gains and significant volatility. The spread across other sectors like consumer cyclicals and financial services introduces some diversification, but the overall balance still leans heavily towards high-growth, high-volatility areas.

Regions Info

  • North America
    85%
  • Europe Developed
    6%
  • Asia Emerging
    3%
  • Japan
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

With 85% of assets in North America, primarily the United States, the portfolio has a strong home country bias. This concentration enhances exposure to the U.S. market's growth potential but also increases vulnerability to its market-specific risks. The modest allocations to developed Europe, Asia, and other regions provide some international diversification, though the portfolio may benefit from a more balanced global exposure to mitigate regional risks and tap into emerging market growth.

Market capitalization Info

  • Mega-cap
    58%
  • Large-cap
    28%
  • Mid-cap
    12%
  • Small-cap
    1%

The focus on mega and big-cap companies (86% combined) aligns with the portfolio's growth orientation, as these firms often offer stable, albeit slower growth compared to smaller companies. However, this concentration may limit exposure to the higher growth potential of mid and small-cap firms, which could offer beneficial diversification and return enhancement opportunities, especially in a growth-focused portfolio.

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.

Given the portfolio's current allocation and high growth focus, optimizing for the Efficient Frontier could enhance the risk-return profile. This optimization process might suggest reallocating assets to achieve a more favorable balance between risk and return, potentially by diversifying more broadly across sectors, geographies, and asset classes. However, it's essential to align any changes with the investor's risk tolerance and investment goals.

Dividends Info

  • Barrick Gold Corp 2.10%
  • Realty Income Corp 5.10%
  • Schwab U.S. Dividend Equity ETF 4.00%
  • Vanguard S&P 500 ETF 1.30%
  • Vanguard Total International Stock Index Fund ETF Shares 3.00%
  • Weighted yield (per year) 1.34%

The inclusion of dividend-yielding assets like Realty Income Corp and the Schwab U.S. Dividend Equity ETF introduces an income component to the portfolio, with a total yield of 1.34%. While the focus remains on growth, these dividends can provide a steady income stream and potential reinvestment opportunities, contributing to the portfolio's overall return in a compounding effect.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.02%

The portfolio benefits from low overall costs, with Total Expense Ratios (TERs) for the included ETFs being notably modest. This efficient cost structure is advantageous for long-term growth, as lower costs directly translate to higher net returns for investors. Maintaining this focus on cost efficiency, especially in a growth-oriented portfolio, is crucial for maximizing investment gains over time.

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