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A tech-heavy portfolio that mistook the S&P 500 for diversification

Report created on Jul 26, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

Diving into this portfolio is like attending a concert where the headliner plays three sets under slightly different names. With 70% in the Vanguard S&P 500 ETF, 20% in the Invesco NASDAQ 100 ETF, and the remaining 10% in the Schwab U.S. Dividend Equity ETF, it's as diversified as a diet consisting solely of potatoes. While you've technically picked different ETFs, they're all attending the same party—U.S. equities, with a heavy lean on tech. It's like betting on the same horse in three different races.

Growth Info

Historically, this portfolio's CAGR at 15.47% might have you feeling like Midas, but remember, past performance is like relying on yesterday’s weather forecast to dress for today. While the performance sounds stellar, it's crucial to remember that these returns are riding on the coattails of one of the longest bull markets in history. The max drawdown of -25.43% should be a cold shower, reminding you that what goes up can also take a nosedive when you least expect it.

Projection Info

Monte Carlo simulations, with their fancy name, are essentially a financial weather forecast, using a lot of "what ifs" to predict future performance. Your portfolio's forecast looks sunny, with a median increase of 567.1%. But remember, Monte Carlo is like predicting the weather in a month—useful, but pack an umbrella just in case. With almost all simulations showing positive returns, you might feel invincible, but even the Titanic was unsinkable until it wasn't.

Asset classes Info

  • Stocks
    100%

All in on stocks, huh? With 100% of your portfolio in equities, your approach to risk is like eating ghost peppers for breakfast. Sure, it’s thrilling, but the aftermath can be painful. A little bond action or even some real estate could be the milk to your spicy investment strategy, cooling things down when the stock market gets too hot to handle.

Sectors Info

  • Technology
    35%
  • Consumer Discretionary
    11%
  • Financials
    11%
  • Telecommunications
    10%
  • Health Care
    9%
  • Industrials
    7%
  • Consumer Staples
    7%
  • Energy
    4%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

Your sector allocation reads like a Silicon Valley pitch deck, with 35% in technology. While tech has been the belle of the ball, even Cinderella had to leave the ball when the clock struck midnight. The heavy lean on consumer cyclicals and financial services is like doubling down on the same bet. Diversification across sectors doesn’t mean having different flavors of the same ice cream.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

99% North America? This portfolio has a serious case of home bias. Investing exclusively in your backyard is like refusing to eat at any restaurant that doesn't have your hometown in the name. The world is vast, and there are opportunities beyond the stars and stripes. Even a small spice of international exposure could save your portfolio from getting too bland.

Market capitalization Info

  • Mega-cap
    44%
  • Large-cap
    37%
  • Mid-cap
    18%
  • Small-cap
    1%

Your market cap allocation is like a bodybuilder who only works on upper body strength—impressive at first glance, but fundamentally unbalanced. With 44% in mega-caps and 37% in big caps, you’re riding the elephants, hoping they’ll dance. Sprinkling some love into medium, small, or even micro caps could make your portfolio more agile, ready to pivot when those elephants decide to sit down.

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.

Your portfolio's risk-return mix is like a tightrope walker wearing blindfolds. Sure, it's exciting, but is it really the best way to get across? The heavy reliance on U.S. stocks, particularly tech, without a safety net of bonds or international exposure, might not be the most efficient path to your financial goals. Diversification isn’t just a buzzword; it’s your portfolio's parachute.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.32%

The dividend yield sitting at a total of 1.32% is like finding loose change under the couch cushions—it’s nice, but you’re not funding a vacation with it. Relying on these yields in a market downturn is like bringing a knife to a gunfight. A more balanced approach to dividends could provide a steadier income stream, turning that loose change into a more reliable paycheck.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.06%

On a brighter note, your total TER at 0.06% is commendably low, like finding a luxury car with economy pricing. In a world where fees can eat into your gains like a termite, you’ve managed to keep the pests at bay. This is one of the few areas where you’ve made a wise choice—like choosing a sturdy boat instead of a flashy yacht that leaks.

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