Growth-oriented portfolio with strong sector focuses and moderate diversification

Report created on Sep 1, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is evenly distributed among ten common stocks, each representing around 9% of the total, indicating a deliberate approach to allocation. This equal weighting across diverse sectors such as Financial Services, Communication Services, Basic Materials, Energy, and Consumer Defensive showcases a strategy aimed at risk distribution. However, the portfolio's exclusive investment in stocks, without bonds or other asset classes, suggests a higher risk tolerance. Comparatively, this structure could be more volatile than a portfolio with a broader asset class mix, potentially impacting stability during market downturns.

Growth Info

Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 17.25%, with a significant maximum drawdown of -45.26%. This indicates that while the portfolio has the potential for high returns, it also carries a considerable risk, as evidenced by the steep drawdown. The days contributing to 90% of returns being concentrated in just 27.0 days highlight the portfolio's volatility and the timing sensitivity of investments. Investors should consider whether the potential for high returns aligns with their risk tolerance and investment horizon.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, suggest a wide range of outcomes for this portfolio. With a median (50th percentile) projected increase of 440.3% and a significant portion of simulations (891 out of 1,000) showing positive returns, the outlook seems optimistic. However, the 5th percentile outcome at -44.5% underlines the risk of substantial losses. It's crucial to remember that such simulations are speculative and depend heavily on past performance, which is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, making it susceptible to market volatility. While stocks are known for their potential for high returns, they also come with increased risk, especially in a portfolio without the cushioning effect of bonds or other less volatile asset classes. Diversifying across different asset classes can help manage risk and reduce the impact of stock market fluctuations on the portfolio's overall performance.

Sectors Info

  • Financials
    27%
  • Telecommunications
    27%
  • Basic Materials
    18%
  • Energy
    18%
  • Consumer Staples
    9%

With significant allocations in Financial Services and Communication Services, followed by Basic Materials and Energy, the portfolio shows a concentration in sectors that can be cyclical and sensitive to economic changes. This sectoral focus might enhance returns during economic upswings but could also lead to increased volatility during downturns. Diversifying more evenly across sectors, including less cyclical ones like Healthcare or Technology, could provide a more balanced risk-return profile.

Regions Info

  • North America
    91%
  • Europe Developed
    9%

The geographic allocation is heavily weighted towards North America (91%) with a smaller portion in Europe Developed (9%). This concentration in developed markets, while potentially more stable, limits exposure to the growth opportunities available in emerging markets. Expanding geographic diversification could capture global growth trends and mitigate the impact of regional economic downturns.

Market capitalization Info

  • Large-cap
    36%
  • Mid-cap
    27%
  • Mega-cap
    27%
  • Small-cap
    9%

The portfolio's market capitalization spread across Big, Medium, Mega, and Small caps indicates a strategy aiming to balance stability with growth potential. However, the slight emphasis on bigger companies suggests a conservative tilt within the stock allocation. Including a broader mix of small and medium-cap stocks could enhance growth prospects, 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 Efficient Frontier, the portfolio may benefit from optimization to achieve the best possible risk-return ratio. Adjusting allocations within the existing asset mix could enhance performance. However, this optimization focuses on mathematical projections, which cannot guarantee future outcomes. It's essential to align any adjustments with the investor's risk tolerance, investment goals, and market outlook.

Dividends Info

  • CF Industries Holdings Inc 2.30%
  • Columbia Banking System Inc 4.00%
  • ConocoPhillips 2.40%
  • EOG Resources Inc 3.10%
  • Alphabet Inc Class A 0.40%
  • The Coca-Cola Company 2.90%
  • Linde plc Ordinary Shares 1.20%
  • Nexstar Broadcasting Group Inc 3.60%
  • OFG Bancorp 2.50%
  • Bank Ozk 3.20%
  • Verizon Communications Inc 6.10%
  • Weighted yield (per year) 2.88%

The portfolio's average dividend yield of 2.88% contributes to its total return, providing a steady income stream in addition to potential capital gains. This yield, while modest, is bolstered by higher-yielding stocks like Verizon Communications Inc at 6.10%. Investors should balance the pursuit of high dividend yields with the overall growth potential and risk profile of their portfolio.

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