Growth-focused portfolio with high exposure to large-cap US equities and technology sector

Report created on Jul 28, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily weighted towards US equities, particularly large-cap stocks, with a significant emphasis on the technology sector. The allocation is concentrated in three ETFs: Invesco NASDAQ 100 ETF (40%), Invesco S&P 500® Momentum ETF (35%), and Vanguard S&P 500 ETF (25%). This composition reflects a growth-oriented strategy but with low diversification across asset classes and geographical regions, as it is almost entirely invested in North American stocks.

Growth Info

Historically, the portfolio has demonstrated a strong performance with a Compound Annual Growth Rate (CAGR) of 17.58%. The maximum drawdown experienced was -27.12%, indicating a relatively high level of risk. The days contributing to 90% of the returns were few, suggesting that the portfolio's performance is somewhat volatile, with significant gains concentrated in short periods.

Projection Info

Utilizing Monte Carlo simulations, which project future outcomes based on historical data, the portfolio shows a wide range of potential future values. The 50th percentile outcome suggests a significant increase, but it's essential to remember that these projections are based on past performance, which is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no diversification into other asset classes such as bonds or real estate. This singular focus on equities enhances growth potential but also increases volatility and risk, especially in market downturns where diversification across asset classes could provide a buffer.

Sectors Info

  • Technology
    38%
  • Telecommunications
    14%
  • Consumer Discretionary
    13%
  • Financials
    10%
  • Consumer Staples
    7%
  • Industrials
    7%
  • Health Care
    5%
  • Utilities
    2%
  • Energy
    2%
  • Real Estate
    1%
  • Basic Materials
    1%

Sector allocation is heavily skewed towards technology, with other significant exposures including communication services and consumer cyclicals. This concentration enhances the portfolio's growth prospects but also increases its susceptibility to sector-specific risks, such as regulatory changes or technological shifts that could disproportionately affect its performance.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

Geographically, the portfolio is nearly entirely invested in North America, with a minimal exposure to developed Europe. This heavy domestic focus limits global diversification, potentially missing out on growth opportunities in emerging markets or other developed regions.

Market capitalization Info

  • Mega-cap
    52%
  • Large-cap
    34%
  • Mid-cap
    13%

The portfolio's market capitalization exposure is predominantly in mega and big-cap stocks, constituting 86% of the allocation. This focus on larger companies may contribute to stability and lower volatility compared to portfolios with significant small or mid-cap exposure but could also limit potential high-growth opportunities found in smaller companies.

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.

Although the portfolio demonstrates strong growth potential, its risk-return profile could be optimized further. Considering the Efficient Frontier, a concept that aims for the best possible return for a given level of risk, diversifying across more asset classes and geographies could enhance the portfolio's efficiency, potentially offering a better balance of risk and return.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.71%

The portfolio's dividend yield averages to 0.71%, which contributes to its total return. While not the primary focus of a growth-oriented strategy, dividends provide a source of income, adding to the portfolio's attractiveness, especially in volatile market phases where price appreciation may be limited.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.11%

With an average Total Expense Ratio (TER) of 0.11%, the portfolio is efficiently managed cost-wise. Lower costs contribute positively to long-term performance, as they reduce the drag on returns. This is particularly beneficial in a growth-focused portfolio where every percentage point of return can compound significantly over time.

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