Growth-focused portfolio leaning heavily on tech and large-cap stocks with moderate diversification

Report created on Jul 19, 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 predominantly invested in ETFs, with a significant concentration in the technology sector and large-cap stocks. It comprises 50.12% in the Invesco QQQ Trust, 34.35% in the Vanguard S&P 500 ETF, and smaller allocations across other ETFs focusing on momentum, information technology, and international developed markets. This composition indicates a growth orientation but raises questions about sectoral and size-based concentration risks.

Growth Info

Historically, this portfolio has exhibited a compound annual growth rate (CAGR) of 19.68%, with a maximum drawdown of -29.67%. These figures suggest robust growth but also highlight periods of significant volatility. The fact that 90% of returns were generated in just 27 days underscores the portfolio's reliance on short-term gains, which may not be sustainable in all market conditions.

Projection Info

Monte Carlo simulations, based on 1,000 scenarios, predict a wide range of outcomes with a median increase of 884.4%. While all simulations resulted in positive returns, this optimistic projection should be tempered with caution. Historical data does not guarantee future performance, and the simulations' reliance on past trends may not fully account for unforeseen market shifts.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is heavily skewed towards stocks (99%), with a negligible cash component (1%) and no bond investments. This allocation underscores the portfolio's growth focus but suggests a higher risk profile, given the lack of fixed-income securities to provide stability during market downturns.

Sectors Info

  • Technology
    43%
  • Telecommunications
    13%
  • Consumer Discretionary
    12%
  • Financials
    8%
  • Health Care
    6%
  • Industrials
    6%
  • Consumer Staples
    6%
  • Utilities
    2%
  • Energy
    2%
  • Basic Materials
    1%
  • Real Estate
    1%

With 43% allocated to technology, followed by significant investments in communication services and consumer cyclicals, the portfolio is positioned to benefit from growth in these sectors. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or economic shifts that disproportionately affect tech and consumer-oriented companies.

Regions Info

  • North America
    95%
  • Europe Developed
    2%

Geographic exposure is heavily North American (95%), with minimal allocations to developed European markets and no presence in emerging markets or other regions. This concentration in North America, particularly the U.S., may limit exposure to global growth opportunities and increase vulnerability to region-specific economic downturns.

Market capitalization Info

  • Mega-cap
    51%
  • Large-cap
    33%
  • Mid-cap
    13%
  • Small-cap
    1%

The focus on mega (51%) and big (33%) cap stocks enhances the portfolio's growth potential but may reduce opportunities for outsized returns from smaller, more agile companies. Medium, small, and micro-cap stocks represent a smaller portion of the portfolio, suggesting a conservative approach to risk management.

Redundant positions Info

  • Invesco QQQ Trust
    Fidelity® MSCI Information Technology Index ETF
    High correlation

The high correlation between the Invesco QQQ Trust and the Fidelity® MSCI Information Technology Index ETF indicates overlapping investments, particularly in the technology sector. This redundancy reduces the diversification benefits of holding multiple assets and could amplify losses during tech sector downturns.

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.

To optimize risk versus return, the portfolio could benefit from addressing its highly correlated assets. Removing or reducing overlap can enhance diversification without necessarily sacrificing growth potential. Rebalancing towards underrepresented sectors or regions may also improve risk-adjusted returns, aligning the portfolio more closely with the Efficient Frontier.

Dividends Info

  • Fidelity® MSCI Information Technology Index ETF 0.40%
  • Invesco S&P International Developed Momentum ETF 2.00%
  • Invesco QQQ Trust 0.40%
  • iShares® 0-3 Month Treasury Bond ETF 4.50%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.79%

The overall dividend yield of 0.79% is modest, reflecting the growth orientation of the portfolio. While dividends contribute to total returns, the primary focus here appears to be on capital appreciation. Investors seeking income alongside growth might consider a greater allocation to assets with higher dividend yields.

Ongoing product costs Info

  • Fidelity® MSCI Information Technology Index ETF 0.08%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco QQQ Trust 0.20%
  • iShares® 0-3 Month Treasury Bond ETF 0.07%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.13%

With a total expense ratio (TER) of 0.13%, the portfolio benefits from relatively low costs, enhancing net returns. Lower costs are particularly advantageous over the long term, as they compound alongside investment returns, preserving more wealth for the investor.

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