Growth-focused portfolio with heavy emphasis on technology and momentum strategies

Report created on Jul 22, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily concentrated in technology, with a significant emphasis on momentum strategies, as evidenced by its major allocations to the Invesco S&P 500® Momentum ETF and the Vanguard Information Technology Index Fund ETF Shares, each comprising 40% of the portfolio. The Defiance Quantum ETF and VanEck Semiconductor ETF, with allocations of 15% and 5% respectively, further underscore the tech focus. This composition suggests a high growth potential but comes with a corresponding level of risk due to its sector concentration and lack of diversification beyond technology and semiconductors.

Growth Info

Historically, this portfolio has shown impressive growth with a Compound Annual Growth Rate (CAGR) of 22.12%. However, it also experienced a significant maximum drawdown of -31.78%, highlighting its volatility. The days contributing to 90% of returns being limited to just 26 indicates that much of the portfolio's performance can be attributed to short, sharp gains, underscoring the importance of timing in this investment strategy. This performance pattern is typical for high-growth, technology-focused portfolios but requires investors to be comfortable with substantial fluctuations.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of possible future outcomes, suggest a wide dispersion in potential returns for this portfolio, with a median projected growth of 1,785.6% over the simulation period. However, the wide range between the 5th and 67th percentiles (from 197.2% to 3,007.1%) indicates a high level of uncertainty and risk. These projections, while optimistic, should be approached with caution as they are based on past performance, which is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, with no allocation to bonds, cash, or other asset classes. This all-equity approach maximizes growth potential but also increases risk, particularly in volatile markets. Diversification across different asset classes can provide a buffer against stock market downturns, suggesting an opportunity to enhance the portfolio's resilience through broader asset class inclusion.

Sectors Info

  • Technology
    66%
  • Financials
    8%
  • Telecommunications
    7%
  • Consumer Discretionary
    6%
  • Industrials
    6%
  • Consumer Staples
    4%
  • Health Care
    1%
  • Utilities
    1%
  • Energy
    1%

With 66% of the portfolio invested in technology, followed by smaller allocations to financial services, communication services, and other sectors, the sectoral allocation underscores a strong conviction in tech's growth prospects. While this focus has historically delivered high returns, it also exposes the portfolio to sector-specific risks, such as regulatory changes or technological shifts. Diversifying across a broader range of sectors could mitigate these risks.

Regions Info

  • North America
    93%
  • Europe Developed
    3%
  • Asia Developed
    2%
  • Japan
    1%
  • Asia Emerging
    1%

The geographic allocation is heavily skewed towards North America (93%), with minimal exposure to developed Europe, Asia, and other emerging markets. This concentration benefits from the robust performance of North American markets, particularly the U.S. technology sector, but limits potential gains from global diversification. Increasing exposure to international markets could provide growth opportunities and reduce geographic risk.

Market capitalization Info

  • Mega-cap
    49%
  • Large-cap
    31%
  • Mid-cap
    12%
  • Small-cap
    5%
  • Micro-cap
    2%

The portfolio's market capitalization breakdown shows a preference for mega (49%) and big (31%) cap stocks, which tend to be more stable than smaller companies but can also limit growth potential. Medium, small, and micro caps represent a smaller portion of the portfolio, suggesting a cautious approach to risk. However, increasing exposure to smaller cap stocks could enhance growth prospects, albeit with higher volatility.

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, there may be opportunities to optimize this portfolio. While it's currently positioned for high growth, its heavy concentration in technology and lack of diversification across asset classes and sectors suggest that its risk-return profile could potentially be improved. Rebalancing to include assets with lower correlation to the technology sector could enhance the portfolio's efficiency.

Dividends Info

  • Defiance Quantum ETF 0.70%
  • VanEck Semiconductor ETF 0.40%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Weighted yield (per year) 0.56%

The portfolio's dividend yield stands at an average of 0.56%, reflecting its growth orientation over income generation. While dividends contribute to total returns, the primary focus here is on capital appreciation. Investors seeking income alongside growth might consider reallocating a portion towards higher-yielding assets.

Ongoing product costs Info

  • Defiance Quantum ETF 0.40%
  • VanEck Semiconductor ETF 0.35%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Weighted costs total (per year) 0.17%

The portfolio's total expense ratio (TER) of 0.17% is relatively low, which is beneficial for long-term growth as costs can significantly erode investment returns over time. The focus on low-cost ETFs is a prudent strategy, ensuring more of the portfolio's returns are retained by the investor.

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