A growth-focused portfolio with a strong tilt towards technology and large-cap stocks

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio is best suited for an investor with a high risk tolerance and a long-term investment horizon, aiming for substantial growth. The investor likely feels comfortable with market fluctuations and has a strong focus on capital appreciation rather than immediate income. Such an investor is probably well-informed about the sectors and asset classes they are exposed to, particularly technology, and is willing to stay invested through market cycles to achieve their financial goals.

Positions

  • FIDELITY ZERO LARGE CAP INDEX FUND
    FNILX - US3159116280
    65.00%
  • VanEck Semiconductor ETF
    SMH - US92189F6768
    17.50%
  • Invesco S&P International Developed Momentum ETF
    IDMO - US46138E2220
    12.50%
  • iShares Bitcoin Trust
    IBIT - US46438F1012
    5.00%

The portfolio is predominantly invested in the FIDELITY ZERO LARGE CAP INDEX FUND, constituting 65% of the allocation, emphasizing large-cap stocks. The VanEck Semiconductor ETF and Invesco S&P International Developed Momentum ETF together add a strategic tilt towards technology and international developed markets, respectively. The inclusion of the iShares Bitcoin Trust introduces exposure to cryptocurrency, reflecting a higher risk appetite. This composition suggests a growth-oriented strategy with a moderate level of diversification, given the heavy concentration in technology and large-cap equities.

Warning Historical data is limited for this portfolio, which reduces the confidence in the calculated values.

Growth Info

Historically, the portfolio has demonstrated impressive performance with a Compound Annual Growth Rate (CAGR) of 28.97%. The maximum drawdown experienced was -20.65%, indicating a relatively high level of risk, consistent with the growth profile of the portfolio. It's noteworthy that a significant portion of returns came from a limited number of days, emphasizing the importance of staying invested through market volatility to capture potential gains. However, past performance is not a reliable indicator of future results.

Warning Due to limited historical data, this may show extreme values that are not realistic.

Projection Info

Monte Carlo simulations, using historical data to project future outcomes, suggest a wide range of potential future values for the portfolio. With 999 out of 1,000 simulations showing positive returns, the analysis indicates a high likelihood of future growth. However, the significant variance between the 5th and 67th percentiles underscores the inherent uncertainty and risk. It's crucial to understand that these projections are hypothetical and subject to limitations, including the assumption that past trends will continue.

Asset classes Info

  • Stocks
    95%
  • Other
    5%
  • Cash
    0%

The portfolio's asset allocation is heavily weighted towards stocks (95%), with a small allocation to other assets (5%), likely the cryptocurrency exposure. This allocation is aligned with a growth-focused strategy but carries higher volatility and risk compared to more diversified portfolios that include fixed income or alternative investments. Balancing growth with diversification could help manage risk without significantly compromising potential returns.

Sectors Info

  • Technology
    41%
  • Financials
    15%
  • Industrials
    7%
  • Telecommunications
    7%
  • Consumer Discretionary
    7%
  • Health Care
    7%
  • Consumer Staples
    4%
  • Energy
    2%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    1%
  • Consumer Discretionary
    1%

The sectoral allocation reveals a strong emphasis on technology (41%), which is typical for growth-oriented portfolios seeking high returns. However, this concentration increases susceptibility to sector-specific risks, such as regulatory changes or technological shifts. Financial Services and a mix of other sectors provide some diversification, but the overall sectoral balance could be improved to mitigate risks and stabilize returns over time.

Regions Info

  • North America
    82%
  • Europe Developed
    8%
  • Asia Developed
    3%
  • Japan
    1%
  • Australasia
    1%
  • Africa/Middle East
    0%
  • Asia Emerging
    0%

Geographic exposure is heavily skewed towards North America (82%), with limited exposure to Europe Developed (8%) and other regions. This concentration benefits from the robust performance of North American markets but limits global diversification. Expanding into emerging markets or increasing allocations to underrepresented developed markets could enhance diversification and potentially tap into higher growth opportunities abroad.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    35%
  • Mid-cap
    14%
  • Small-cap
    0%

The portfolio's focus on mega (45%) and big (35%) cap stocks aligns with its growth and risk profile, leveraging the stability and potential of large corporations. However, the absence of small-cap investments may limit exposure to high-growth potential sectors and companies. Incorporating a measured allocation to medium and small-cap stocks could introduce additional growth opportunities and diversification benefits.

Dividends Info

  • FIDELITY ZERO LARGE CAP INDEX FUND 0.90%
  • Invesco S&P International Developed Momentum ETF 1.70%
  • VanEck Semiconductor ETF 0.30%
  • Weighted yield (per year) 0.85%

The portfolio's overall dividend yield of 0.85% reflects its growth orientation, with reinvestment likely prioritized over income generation. While the yield is modest, it contributes to total returns and provides a small buffer during market volatility. Investors seeking higher income might consider diversifying into assets or sectors with higher dividend yields without significantly altering the portfolio's growth trajectory.

Ongoing product costs Info

  • iShares Bitcoin Trust 0.12%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • VanEck Semiconductor ETF 0.35%
  • Weighted costs total (per year) 0.10%

The portfolio benefits from relatively low costs, with a Total Expense Ratio (TER) of 0.10%, contributing to its efficiency and potential for higher net returns over time. Keeping costs low is crucial for maximizing investment growth, especially in a growth-focused portfolio where compound returns play a significant role. Continuously monitoring and managing investment costs will remain a key factor in enhancing long-term performance.

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.

The portfolio's current allocation suggests it is positioned towards the higher end of the risk-return spectrum, as indicated by its growth profile and risk score. While it shows a strong potential for high returns, there's room for optimization towards the Efficient Frontier, where the risk-return ratio is maximized. Adjusting the asset allocation to include a broader range of asset classes and sectors could improve the portfolio's efficiency, balancing risk and return more effectively.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.