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A tech-heavy portfolio with a side of healthcare hoping diversification is just a buzzword

Report created on May 30, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

Imagine going to a buffet and only filling your plate with variations of chicken dishes. That's this portfolio, but with tech and healthcare stocks instead of poultry. With a whopping 42% in a single S&P 500 ETF, it's like betting your retirement on black and hoping the roulette ball doesn't land on red or, heaven forbid, green. The rest is a mishmash of sector-specific ETFs, creating an illusion of diversification. It's like wearing different hats but forgetting to change your outfit.

Growth Info

Historically, this portfolio has been riding the tech bull run like a cowboy at a rodeo, boasting a CAGR of 16%. But remember, past performance is like rearview mirror driving—it's only good until you hit something unexpected. With a max drawdown of -32.95%, it's clear this ride has had its ups and downs. Relying on a few good days for most of the returns is akin to expecting a lottery ticket to pay for retirement.

Projection Info

Monte Carlo simulations suggest a future as volatile as a soap opera plotline, with potential returns ranging from "buying a yacht" to "selling your plasma." While the median projection looks pretty, remember, Monte Carlo is like weather forecasting for your money. Sure, it's sunny now, but hurricanes exist. Betting heavily on sectors that have performed well in the past is like expecting lightning to strike the same spot repeatedly because it did once.

Asset classes Info

  • Stocks
    100%

Stocks, stocks, and more stocks. This portfolio has put all its eggs in one asset class basket, making it as balanced as a one-legged stool. The complete absence of bonds, real estate, or even a hint of cash equivalents means there's nothing to cushion the fall when the stock market gets rocky. Diversification across asset classes is not just a fancy term; it's financial survival 101.

Sectors Info

  • Technology
    48%
  • Health Care
    18%
  • Financials
    8%
  • Consumer Discretionary
    7%
  • Industrials
    5%
  • Telecommunications
    5%
  • Consumer Staples
    3%
  • Energy
    2%
  • Real Estate
    2%
  • Utilities
    1%
  • Basic Materials
    1%

With nearly half the portfolio in tech and a significant slice in healthcare, this investor is betting heavily on just two sectors. While tech has been the market's darling, remember, even the prettiest bubbles eventually pop. And healthcare, while essential, carries its regulatory and policy risks. It's like having a diet consisting solely of steak and ice cream—delicious, but not exactly balanced.

Regions Info

  • North America
    97%
  • Europe Developed
    1%
  • Asia Developed
    1%

This portfolio screams "America First" with a 97% allocation to North America. While patriotic, it's a narrow view in a globalized economy. Ignoring developed markets in Europe and Asia, not to mention emerging markets, is like refusing to eat any food not grown in your backyard. Sure, it's local, but you're missing out on a world of flavors.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    31%
  • Mid-cap
    18%
  • Small-cap
    8%
  • Micro-cap
    2%

With a heavy lean towards mega and big caps, this portfolio is like a knight wearing full armor but forgetting the shield. Yes, large companies offer stability, but they also limit growth potential compared to mid or small caps. And with a token allocation to smaller companies, it's a nod to diversification without fully committing—like dipping a toe in the pool without jumping in.

Redundant positions Info

  • Vanguard Information Technology Index Fund ETF Shares
    Vanguard Growth Index Fund ETF Shares
    Vanguard S&P 500 ETF
    High correlation

The high correlation between the S&P 500, tech, and growth ETFs is like buying three different brands of vanilla ice cream and expecting a flavor variety. This redundancy doesn't add value or diversification; it's just piling on more of the same risk. It's crucial to mix in some chocolate or strawberry—anything to break up the vanilla monotony.

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.

This portfolio's idea of "optimization" seems to be throwing darts at a board of popular ETFs. The significant overlap among chosen ETFs adds unnecessary complexity without the benefit of diversification. True optimization involves balancing risk and return, not just assembling a greatest hits album of recent market trends. It's time to remix this playlist with some fresh tracks.

Dividends Info

  • First Trust NASDAQ Cybersecurity ETF 0.20%
  • iShares U.S. Medical Devices ETF 0.40%
  • VanEck Semiconductor ETF 0.40%
  • Vanguard Small-Cap Index Fund ETF Shares 1.50%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard Health Care Index Fund ETF Shares 1.60%
  • Vanguard S&P 500 ETF 1.30%
  • Vanguard Growth Index Fund ETF Shares 0.50%
  • SPDR® S&P Biotech ETF 0.20%
  • Weighted yield (per year) 0.94%

The portfolio's dividend yield hovers around 0.94%, which is like finding loose change in the couch—it's nice, but it won't pay the bills. For a growth-focused investor, dividends might not be the priority, but they can provide a steady income stream and a cushion in volatile markets. Relying solely on capital gains is a bit like expecting every day to be sunny.

Ongoing product costs Info

  • First Trust NASDAQ Cybersecurity ETF 0.59%
  • iShares U.S. Medical Devices ETF 0.40%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard Small-Cap Index Fund ETF Shares 0.05%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Health Care Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • SPDR® S&P Biotech ETF 0.35%
  • Weighted costs total (per year) 0.13%

The Total Expense Ratio (TER) averaging at 0.13% is one of the few commendable aspects, akin to finding a designer suit at a thrift store price. It's low enough not to eat significantly into returns, which is a smart move. However, even the most cost-efficient portfolio can falter without proper diversification and risk management.

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