Tech-heavy aggressive portfolio with high growth potential and concentrated sector exposure

Report created on Aug 19, 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 characterized by a significant allocation towards technology stocks, comprising 55% of the portfolio, with notable positions in major tech companies like NVIDIA Corporation and Apple Inc. The presence of ETFs such as the Invesco QQQ Trust, SPDR S&P 500 ETF Trust, and Vanguard Total Stock Market Index Fund ETF Shares indicates an attempt to balance the high-risk individual stock picks with broader market exposure. However, the overall asset class diversity is limited, with 100% invested in stocks and no allocation to bonds, real estate, or alternative investments.

Growth Info

Historically, this portfolio has shown a remarkable Compound Annual Growth Rate (CAGR) of 35.75%, though it has experienced significant volatility, as evidenced by a maximum drawdown of -45.83%. Such performance highlights the aggressive growth strategy but also underscores the potential for large swings in value, especially during market downturns. The days contributing to 90% of returns being concentrated in just 21.0 days further emphasizes the portfolio's reliance on short, sharp gains.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential future outcomes, show a wide range of possible results for this portfolio. The 50th percentile outcome suggests a substantial potential for growth (616.6%), while the 5th percentile outcome indicates a significant risk of loss (-85.5%). This wide dispersion underscores the high-risk, high-reward nature of the portfolio, with a considerable portion of simulations yielding positive returns.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks, without diversification into other asset classes like bonds or commodities, positions it for high growth potential but also exposes it to elevated market volatility. This approach aligns with an aggressive investment strategy but may benefit from incorporating other asset classes to mitigate risk and smooth out returns over time.

Sectors Info

  • Technology
    55%
  • Industrials
    15%
  • Consumer Staples
    10%
  • Telecommunications
    6%
  • Consumer Discretionary
    6%
  • Financials
    6%
  • Health Care
    1%

With a heavy emphasis on technology and a notable presence in industrials and consumer defensive sectors, the portfolio is positioned to capitalize on growth trends but may be vulnerable to sector-specific downturns. The limited exposure to sectors such as healthcare, energy, utilities, and real estate suggests an opportunity to enhance diversification and potentially reduce volatility.

Regions Info

  • North America
    91%
  • Asia Emerging
    9%

The geographic allocation is heavily skewed towards North America (91%), with a minor allocation to Asia Emerging (9%), and no exposure to Europe Developed, Latin America, or Asia Developed regions. This concentration enhances the portfolio's vulnerability to regional economic shifts and misses potential opportunities for growth and risk mitigation through global diversification.

Market capitalization Info

  • Mega-cap
    49%
  • Mid-cap
    30%
  • Large-cap
    16%
  • Small-cap
    5%

The portfolio's market capitalization breakdown shows a preference for mega (49%) and medium (30%) cap stocks, with lesser exposure to big (16%) and small (5%) cap stocks. This composition suggests a focus on established companies with a potential for stability and growth but may benefit from greater small and micro-cap exposure to exploit emerging growth opportunities.

Redundant positions Info

  • SPDR S&P 500 ETF Trust
    Invesco QQQ Trust
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation among the ETFs (SPDR S&P 500, Invesco QQQ Trust, Vanguard Total Stock Market Index Fund) indicates overlapping investments that may not provide the intended diversification benefits. Reducing overlap by reallocating assets could enhance the portfolio's risk-adjusted performance by ensuring each investment contributes uniquely to the portfolio's overall risk and return profile.

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.

Optimizing this portfolio involves addressing the high correlation among certain assets, particularly the ETFs, to improve diversification. By reallocating funds from overlapping ETFs into underrepresented sectors, asset classes, or geographic regions, the portfolio could achieve a more favorable risk-return balance. The Efficient Frontier model suggests that there's room for improvement in achieving the best possible risk-return ratio through more strategic asset allocation.

Dividends Info

  • Apple Inc 0.40%
  • Boyd Gaming Corporation 0.80%
  • FinVolution Group 3.10%
  • The Coca-Cola Company 2.90%
  • Micron Technology Inc 0.40%
  • Procter & Gamble Company 2.70%
  • Invesco QQQ Trust 0.50%
  • SPDR S&P 500 ETF Trust 1.10%
  • Taiwan Semiconductor Manufacturing 1.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 0.69%

The portfolio's dividend yield stands at 0.69%, with contributions from several holdings like The Coca-Cola Company and Procter & Gamble Company, known for their stable dividends. While the focus is clearly on growth, the dividends provide a modest income stream, which could be optimized by increasing allocations to higher-yielding assets without significantly compromising growth potential.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • SPDR S&P 500 ETF Trust 0.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.02%

The portfolio's overall expense ratio (TotalTER) is exceptionally low at 0.02%, reflecting efficient cost management. The individual expense ratios of the ETFs are modest, contributing to the portfolio's cost-effectiveness. Maintaining low costs is crucial for enhancing long-term returns, especially in an aggressive portfolio where high growth is a priority.

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