A growth-focused portfolio with a high concentration in tech and significant exposure to the NASDAQ 100
Report created on Oct 21, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
QQ Invesco NASDAQ 100 ETF
QQQM - US46138G6492 80.00% -
NV NVIDIA Corporation
NVDA - US67066G1040 20.00%
This portfolio is heavily weighted towards the Invesco NASDAQ 100 ETF, comprising 80% of the allocation, with the remaining 20% invested in NVIDIA Corporation stock. This composition indicates a strong focus on technology and growth sectors, with a notable lack of diversity across asset classes and sectors. The portfolio's concentration in a single ETF and one stock, both tied closely to the tech industry, exposes it to sector-specific risks.
Growth
Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 27.19%, with a maximum drawdown of -44.16%. These figures suggest high volatility but also the potential for substantial returns. The days contributing to 90% of returns being limited to 28 indicates that the portfolio's performance is highly dependent on short, significant rallies, a characteristic of growth-focused investments in volatile sectors.
Projection
Using Monte Carlo simulations, which predict future performance based on historical data, the portfolio shows a wide range of outcomes. With a median projected increase of over 10,000%, the simulations suggest high growth potential. However, it's important to remember that such projections are speculative and depend on historical trends continuing, which is not guaranteed.
Asset classes
- Stocks 100%
The portfolio is entirely invested in stocks, with no allocation to bonds, cash, or alternative investments. This lack of diversification across asset classes can increase risk, as stocks are generally more volatile than other asset types. Diversifying across asset classes can help mitigate risk and smooth out returns over time.
Sectors
- Technology 64%
- Telecommunications 13%
- Consumer Discretionary 11%
- Consumer Staples 4%
- Health Care 3%
- Industrials 3%
- Utilities 1%
- Basic Materials 1%
With 64% in technology and significant investments in communication services and consumer cyclicals, the portfolio is highly concentrated in sectors that can be susceptible to market fluctuations. While these sectors offer growth opportunities, their performance can be volatile, affecting the portfolio's overall stability.
Regions
- North America 98%
- Europe Developed 1%
The geographic allocation is heavily skewed towards North America, with 98% of the portfolio invested in this region. This concentration in a single geographic area increases exposure to regional economic and political risks. Diversifying across more regions could help reduce this risk.
Market capitalization
- Mega-cap 64%
- Large-cap 27%
- Mid-cap 9%
The focus on mega (64%) and big (27%) cap stocks aligns with the portfolio's growth and risk profile, as these companies often offer more stability than smaller companies. However, the inclusion of medium cap stocks (9%) introduces additional growth potential, 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 portfolio's current composition and risk-return profile, optimizing along the Efficient Frontier could involve diversifying across more sectors and asset classes. This optimization aims to achieve the best possible risk-return ratio, suggesting that the portfolio could benefit from adjustments to enhance diversification without necessarily compromising growth potential.
Dividends
- Invesco NASDAQ 100 ETF 0.50%
- Weighted yield (per year) 0.40%
The portfolio's dividend yield is relatively low, reflecting its growth orientation over income generation. Investors prioritizing long-term capital appreciation over current income might find this acceptable, but those seeking regular income may need to adjust the portfolio to include higher-yielding assets.
Ongoing product costs
- Invesco NASDAQ 100 ETF 0.15%
- Weighted costs total (per year) 0.12%
The total expense ratio (TER) of 0.12% is impressively low, which is beneficial for long-term growth as lower costs translate to higher net returns. Keeping costs minimized is crucial in maximizing investment growth, especially in a concentrated portfolio where individual investment performance significantly impacts overall returns.
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