Growth-focused portfolio with a strong tilt towards technology and utilities

Report created on Aug 25, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily concentrated in three major positions: a broad-based S&P 500 ETF, a technology sector ETF, and shares in a utility company, each constituting roughly a third of the portfolio. Such a composition is unusual due to its high concentration in just a few assets, diverging from traditional diversification principles. While this structure may capitalize on specific sector strengths, it inherently carries higher volatility and risk, particularly because of the significant exposure to the technology sector and a single utility stock.

Growth Info

The portfolio has experienced a remarkable Compound Annual Growth Rate (CAGR) of 26.62%, with a maximum drawdown of -39.51%. These figures suggest a high-reward but equally high-risk profile, as evidenced by the substantial drawdown. The days contributing to 90% of returns being so few indicate that the portfolio's performance is heavily reliant on short, significant bursts of positive returns, a characteristic of high volatility investments.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential future portfolio values, with a median increase of 2,288.4%. While these projections offer a glimpse into potential growth, it's crucial to remember that such simulations are based on past trends, which may not always predict future performance accurately. This variance underscores the portfolio's speculative nature and the high level of uncertainty in its future performance.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no diversification into other asset classes like bonds or real estate. This singular focus on equities, particularly within specific sectors, amplifies both potential returns and volatility. Diversifying across different asset classes can help mitigate risk by spreading exposure across investments that react differently to market conditions.

Sectors Info

  • Technology
    44%
  • Utilities
    34%
  • Financials
    5%
  • Consumer Discretionary
    4%
  • Telecommunications
    3%
  • Health Care
    3%
  • Industrials
    3%
  • Consumer Staples
    2%
  • Energy
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

Sector allocation heavily favors technology and utilities, with a minor distribution across several other sectors. This concentration in technology, while potentially lucrative, exposes the portfolio to sector-specific risks, such as regulatory changes or technological obsolescence. The significant investment in utilities, typically considered a more stable sector, offers some balance but may not sufficiently mitigate the overall risk.

Regions Info

  • North America
    100%

The portfolio's geographic allocation is entirely focused on North America, missing out on potential opportunities and diversification benefits offered by international markets. This lack of geographic diversity can increase vulnerability to regional economic downturns and limit exposure to global growth trends.

Market capitalization Info

  • Large-cap
    53%
  • Mega-cap
    33%
  • Mid-cap
    10%
  • Small-cap
    3%
  • Micro-cap
    1%

The focus on big and mega-cap stocks is consistent with the portfolio's growth orientation, given these companies' potential for significant returns. However, the limited exposure to mid, small, and micro-cap stocks restricts opportunities for higher growth rates that these smaller companies can offer, 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, which aims to maximize returns for a given level of risk, this portfolio may not be fully optimized. Its heavy concentration in a few assets and sectors suggests a higher-than-necessary risk level for its returns. Diversifying more broadly across sectors, asset classes, and geographies could potentially offer a better risk-return trade-off.

Dividends Info

  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vistra Energy Corp 0.50%
  • Weighted yield (per year) 0.74%

The portfolio yields an overall dividend yield of 0.74%, which is relatively modest. The focus on growth stocks, particularly in the technology sector, often comes at the expense of higher dividend yields. For investors prioritizing growth over income, this yield may be acceptable, but it highlights the portfolio's strategy of reinvesting earnings for growth rather than providing income.

Ongoing product costs Info

  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.04%

The portfolio benefits from low total expense ratios (TER) on its ETF holdings, averaging 0.04%, which is commendable. Keeping investment costs low is crucial for enhancing long-term returns, especially in growth-oriented portfolios where every percentage point of return matters.

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