A tech-focused aggressive portfolio with high concentration in leading companies

Report created on May 29, 2025

Risk profile Info

6/7
Aggressive
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is highly concentrated in the technology and communication sectors, with significant positions in Amazon, Netflix, Alphabet, Microsoft, and other tech giants. Such a composition indicates a strong bias towards growth-oriented companies, particularly those within the digital and tech space. The allocation is aggressive, with a high risk score reflecting the portfolio's potential for significant volatility. The focus on a single asset class (stocks) and heavy weighting towards a few large-cap companies further accentuates this risk profile.

Growth Info

The portfolio has shown a remarkable Compound Annual Growth Rate (CAGR) of 26.83%, with a maximum drawdown of -48.71%. This performance suggests high volatility but also the potential for substantial rewards. The days contributing to 90% of returns being limited to 23 indicates that the portfolio's gains are highly concentrated in short, significant bursts, typical of growth stocks. However, such past performance, while impressive, should be approached with caution as it doesn't guarantee future results.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. The 50th percentile outcome suggests a potential for very high returns, but the significant spread to the 5th percentile highlights the risk of substantial losses. It's crucial to understand that these simulations are based on past market behavior, which may not predict future movements accurately.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, lacking exposure to other asset classes like bonds or real estate. This singular focus increases potential returns but also risk, as there's no diversification to mitigate stock market volatility. Including different asset classes could provide a buffer during stock market downturns, leading to a more stable performance over time.

Sectors Info

  • Telecommunications
    39%
  • Consumer Discretionary
    30%
  • Technology
    18%
  • Financials
    12%
  • Consumer Staples
    2%

With a heavy allocation towards communication services and technology, the portfolio is poised to benefit from growth in these sectors. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or technological shifts. Expanding into additional sectors could reduce volatility and improve long-term performance.

Regions Info

  • North America
    91%
  • Europe Developed
    6%
  • No data
    4%

The geographic distribution is heavily skewed towards North America, particularly the U.S., with a smaller allocation to developed Europe. This focus on developed markets, while reducing exposure to emerging market volatility, may limit growth potential and diversification benefits. Considering a broader geographic spread could capture global growth opportunities.

Market capitalization Info

  • Mega-cap
    83%
  • Large-cap
    18%

The emphasis on mega and big cap stocks aligns with the portfolio's growth and risk profile, as these companies often have more stable earnings and growth potential. However, this focus may miss out on the higher growth potential of smaller companies, suggesting a review of market cap distribution could be beneficial.

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 portfolio's current configuration suggests a strong growth orientation but lacks diversification, which could be improved by adjusting allocations across different asset classes, sectors, and geographies. Utilizing the Efficient Frontier concept could help in finding an optimal balance between risk and return, though it's based on historical data and should be one of many tools in decision-making.

Dividends Info

  • ASML Holding NV ADR 0.90%
  • Alphabet Inc Class A 0.50%
  • Microsoft Corporation 0.50%
  • S&P Global Inc 0.70%
  • Weighted yield (per year) 0.27%

The dividend yield across the portfolio is relatively low, reflecting the growth-oriented nature of the investments. While reinvesting dividends from stocks like ASML Holding and Alphabet can contribute to compounding returns, investors seeking income might consider increasing exposure to higher-yielding assets.

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