A growth-focused portfolio with high technology exposure and a lean towards high dividends

Report created on Aug 21, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is heavily concentrated in four ETFs, each holding a 25% share, focusing on high dividends, S&P 500 momentum, information technology, and a broad S&P 500 index. This composition suggests a growth-oriented strategy with a significant tilt towards technology stocks, which comprise 45% of the portfolio. The heavy reliance on a single asset class (stocks) and a notable emphasis on large-cap companies indicate a lower level of diversification, reflected in its diversification score of 2 out of 5.

Growth Info

Historically, this portfolio has demonstrated a robust Compound Annual Growth Rate (CAGR) of 20.02%, with a maximum drawdown of -33.86%. The performance peaks were concentrated in just 36 days, underscoring the portfolio's volatility and the importance of staying invested during critical market movements. Compared to a balanced benchmark, this portfolio may exhibit higher short-term fluctuations but has offered substantial growth over time.

Projection Info

Monte Carlo simulations, which utilize historical data to forecast future performance, suggest a wide range of outcomes for this portfolio. The key percentiles indicate potential growth from 238.9% to 1,950.4%, with nearly all simulations (999 out of 1,000) showing positive returns. This optimistic projection underscores the portfolio's growth potential, though it's important to remember that past performance doesn't guarantee future results.

Asset classes Info

  • Stocks
    100%

The portfolio is fully invested in stocks, with no allocation to bonds, cash, or alternative investments. This singular focus on equities enhances its growth potential but also increases its risk profile. Diversifying across different asset classes could mitigate risk and reduce volatility without necessarily compromising long-term returns.

Sectors Info

  • Technology
    45%
  • Financials
    13%
  • Consumer Discretionary
    7%
  • Consumer Staples
    7%
  • Telecommunications
    7%
  • Industrials
    5%
  • Health Care
    4%
  • Real Estate
    4%
  • Utilities
    4%
  • Energy
    4%

A 45% allocation to technology makes the portfolio particularly sensitive to the performance of the tech sector. While technology stocks have driven market gains in recent years, this concentration increases vulnerability to sector-specific downturns. The portfolio also has exposure to financial services, consumer sectors, and communication services, but these do not sufficiently balance the heavy tech weighting.

Regions Info

  • North America
    98%
  • Europe Developed
    1%

With 98% of assets allocated to North America, the portfolio has minimal exposure to international markets. This geographic concentration in developed markets, primarily the US, limits potential gains from emerging markets and increases exposure to US-specific economic risks.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    32%
  • Mid-cap
    16%
  • Small-cap
    5%
  • Micro-cap
    1%

The portfolio's emphasis on mega (46%) and big (32%) cap stocks aligns with its growth and stability objectives, offering a blend of market leaders with potential for innovation-driven growth. However, the minimal exposure to small and micro-cap stocks restricts opportunities for outsized gains from smaller companies.

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, which could potentially offer a better risk-return trade-off. Adjusting the asset allocation to include a broader range of asset classes and reducing concentration in the technology sector could improve the portfolio's efficiency.

Dividends Info

  • Fidelity® High Dividend ETF 3.00%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.32%

The portfolio's overall dividend yield of 1.32% is bolstered by the Fidelity® High Dividend ETF, which contributes a 3.00% yield. While dividends provide a steady income stream and can offer some downside protection, the portfolio's focus on growth means dividends are a secondary consideration to capital appreciation.

Ongoing product costs Info

  • Fidelity® High Dividend ETF 0.15%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.10%

With a total expense ratio (TER) of 0.10%, the portfolio benefits from relatively low costs, which can significantly enhance long-term returns. Keeping costs low is a prudent strategy, especially in a growth-focused portfolio where every percentage point of return counts.

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