Tech tilted us focused growth portfolio with strong historical returns and moderate diversification
Report created on Jul 20, 2024Risk profile
5/7
Diversification profile
3/5
Positions
-
IV iShares Core S&P 500 ETF
IVV - US4642872000 50.00% -
QQ Invesco QQQ Trust
QQQ - US46090E1038 25.00% -
IW iShares Russell Mid-Cap ETF
IWR - US4642874998 10.00% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 10.00% -
BO Global X Robotics & Artificial Intelligence ETF
BOTZ - US37954Y7159 5.00%
The portfolio is a simple five‑ETF mix that is 100% in stocks, with half in a broad large‑cap index, a quarter in a growth‑heavy fund, and the rest spread across mid caps, dividend payers, and a thematic robotics and AI position. This structure leans clearly toward capital growth rather than stability or income. Having only a handful of positions makes the portfolio easy to monitor and rebalance, but also means each fund really matters for overall behavior. For someone wanting long‑term growth, this type of setup can work well, provided they’re comfortable with stock‑market level swings and don’t need the cushioning effect of bonds or cash within this account.
Growth
Over the past decade, a hypothetical $1,000 grew to about $3,736, with a compound annual growth rate (CAGR) of 14.88%. CAGR is like the average speed of a car on a long trip, smoothing out bumps to show how fast money grew per year. That beats both the US market proxy at 14.03% and the global market at 11.40%. The worst peak‑to‑trough fall was around ‑32.5%, similar to broad equities. This shows the portfolio captured strong upside while not being dramatically riskier than the market. Just remember that these results are backward‑looking; future returns can differ a lot, especially with today’s heavier tech and growth exposure.
Asset classes
- Stocks 100%
All of the money is in stocks, with no allocation to bonds, cash, or alternatives. That pure‑equity stance is typical for growth‑oriented investors who prioritize higher expected returns over smoother ride quality. The benefit is maximizing long‑term return potential, since historically stocks have outperformed bonds over multi‑decade periods. The trade‑off is more severe short‑term drawdowns, like the roughly one‑third decline seen historically. Compared with common benchmarks that often include some bonds for balance, this portfolio is more aggressive. Anyone using a structure like this usually wants a long time horizon and is prepared to handle sizeable temporary losses without changing course at the worst possible moment.
Sectors
- Technology 35%
- Telecommunications 11%
- Consumer Discretionary 10%
- Industrials 10%
- Health Care 9%
- Financials 8%
- Consumer Staples 7%
- Energy 5%
- Utilities 2%
- Real Estate 2%
- Basic Materials 2%
Sector exposure is led by technology at 35%, well above broad‑market levels, with meaningful allocations to telecommunications, consumer areas, industrials, health care, and financials. This tech and communication tilt pairs with the focused AI fund to create a strong growth flavor. Tech‑heavy portfolios can shine when innovation, falling interest rates, or strong earnings growth drive valuations higher, but they may feel more volatile during rate hikes or when investors rotate toward cheaper or defensive areas. One positive is that you still have exposure across all major sectors, which supports diversification. The key question is whether this growth‑heavy tilt matches the intended risk/return balance and emotional comfort level.
Regions
- North America 96%
- Japan 1%
- Asia Emerging 1%
- Europe Developed 1%
Geographically, the portfolio is overwhelmingly tilted to North America at 96%, with only token exposure to other developed and emerging regions. That’s actually quite common for US‑based investors and has been rewarded over the last decade, as US markets have outpaced many international ones. The flip side is more dependence on one economic region, one currency, and a relatively concentrated set of regulatory and political conditions. Compared with a global benchmark, which spreads roughly half outside the US, this is a clear home‑country tilt. For some investors, that’s acceptable, but others prefer more global balance to reduce the impact of a US‑specific downturn or policy shock.
Market capitalization
- Mega-cap 39%
- Large-cap 35%
- Mid-cap 22%
- Small-cap 3%
Market‑cap exposure is dominated by mega and large caps, together making up about 74% of the portfolio, with a solid 22% in mid caps and only a small slice in small caps. Large and mega companies tend to be more stable, widely researched, and liquid, which can help reduce company‑specific risk. Mid caps often blend growth potential with reasonable stability, while small caps are usually the most volatile and sensitive to economic cycles. This mix is reasonably close to broad‑market behavior but slightly downplays small caps. For many investors, that’s a comfortable balance: plenty of exposure to major winners while avoiding the full rollercoaster of a heavy small‑cap tilt.
True holdings
-
NV NVIDIA Corporation 6.33%
Part of fund(s):- Global X Robotics & Artificial Intelligence ETF
- Invesco QQQ Trust
- iShares Core S&P 500 ETF
-
AA Apple Inc 5.14%
Part of fund(s):- Invesco QQQ Trust
- iShares Core S&P 500 ETF
-
MS Microsoft Corporation 3.89%
Part of fund(s):- Invesco QQQ Trust
- iShares Core S&P 500 ETF
-
AM Amazon.com Inc 2.93%
Part of fund(s):- Invesco QQQ Trust
- iShares Core S&P 500 ETF
-
GO Alphabet Inc Class A 2.39%
Part of fund(s):- Invesco QQQ Trust
- iShares Core S&P 500 ETF
-
AV Broadcom Inc 2.11%
Part of fund(s):- Invesco QQQ Trust
- iShares Core S&P 500 ETF
-
ME Meta Platforms Inc. 2.05%
Part of fund(s):- Invesco QQQ Trust
- iShares Core S&P 500 ETF
-
GO Alphabet Inc Class C 2.02%
Part of fund(s):- Invesco QQQ Trust
- iShares Core S&P 500 ETF
-
TS Tesla Inc 1.91%
Part of fund(s):- Invesco QQQ Trust
- LS 1x Tesla Tracker ETP Securities GBP
- iShares Core S&P 500 ETF
-
WM Walmart Inc. Common Stock 0.82%
Part of fund(s):- Invesco QQQ Trust
- Top 10 total 29.57%
Looking through the ETFs, the biggest underlying exposures are familiar mega‑cap names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla, and Walmart. Many of these appear in multiple funds, especially the broad index and the growth‑heavy ETF, creating “hidden” concentration even though you technically own several funds. For example, NVIDIA and Apple together already account for over 11% of total exposure from the partial look‑through alone. Because only ETF top‑10 holdings are counted, the true overlap is higher. The practical takeaway is that big moves in a handful of tech and platform companies will heavily influence the portfolio’s overall returns.
Factors
Factor exposure is very balanced, with all six factors—value, size, momentum, quality, yield, and low volatility—sitting in the neutral range near market averages. Factors are like investing “ingredients” that explain why some stocks behave differently, for example, cheap vs. expensive or stable vs. choppy. A neutral profile means the portfolio doesn’t strongly lean into any particular style; it tends to move similarly to the broad market, adjusted for its sector and regional tilts. This is actually a strength if the goal is to avoid style bets that can go in and out of favor. Performance will be driven more by overall equity markets and the tech/growth bias than by factor timing.
Risk contribution
-
iShares Core S&P 500 ETF
Weight: 50.00% 48.1% -
Invesco QQQ Trust
Weight: 25.00% 28.5% -
iShares Russell Mid-Cap ETF
Weight: 10.00% 9.8% -
Schwab U.S. Dividend Equity ETF
Weight: 10.00% 7.7% -
Global X Robotics & Artificial Intelligence ETF
Weight: 5.00% 6.0%
Risk contribution shows how much each ETF adds to the overall ups and downs, which can differ from simple weights. Here, the top three positions—broad large caps, growth‑heavy, and mid caps—make up over 86% of total portfolio risk, similar to their combined weight. The growth‑focused ETF and the AI fund have risk contributions slightly above their weights, meaning they punch a bit above their size in driving volatility. The dividend fund contributes less risk than its 10% allocation, acting as a modest stabilizer. If someone wanted to dial down overall volatility, trimming the growth‑ier pieces and boosting the steadier fund would be one straightforward way to realign risk contribution.
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.
On the risk‑return chart, the current portfolio delivers an expected return of 15.54% with volatility of 18.92% and a Sharpe ratio of 0.72. The efficient frontier shows that, using only your existing holdings, a different mix could reach a Sharpe of 0.86 at slightly higher risk, or 0.74 at lower risk. Because the current allocation sits about 1.7 percentage points below the frontier at its risk level, there’s room to improve the risk/return tradeoff simply by reweighting what you already own. In practice, that would mean shifting weights toward the combination the model flags as “optimal” for more return per unit of risk without needing any new products.
Dividends
- Global X Robotics & Artificial Intelligence ETF 0.70%
- iShares Core S&P 500 ETF 1.30%
- iShares Russell Mid-Cap ETF 1.30%
- Invesco QQQ Trust 0.50%
- Schwab U.S. Dividend Equity ETF 2.60%
- Weighted yield (per year) 1.20%
The portfolio’s overall dividend yield is about 1.2%, a bit lower than many broad equity benchmarks, mainly because of the sizable allocation to growth‑heavy and thematic funds with lower payouts. The dedicated dividend ETF, yielding around 2.6%, helps lift the income profile somewhat, acting as a partial counterweight. Dividends can be valuable as a steady return component, especially in flat or choppy markets, but lower‑yield growth strategies often aim to make up for this through capital appreciation. For investors still in the accumulation stage, reinvesting these dividends automatically can quietly accelerate compounding over time, even if the headline yield looks modest compared with income‑focused portfolios.
Ongoing product costs
- Global X Robotics & Artificial Intelligence ETF 0.68%
- iShares Core S&P 500 ETF 0.03%
- iShares Russell Mid-Cap ETF 0.19%
- Invesco QQQ Trust 0.20%
- Schwab U.S. Dividend Equity ETF 0.06%
- Weighted costs total (per year) 0.12%
The blended total expense ratio (TER) is an impressively low 0.12%, thanks to heavy use of ultra‑low‑cost core ETFs and just one higher‑fee thematic fund. TER is the annual fee charged by funds, expressed as a percentage of invested assets; even small differences compound meaningfully over long periods. Being this close to broad index‑fund cost levels is a strong positive, as lower costs leave more of the gross return in your pocket each year. The thematic AI fund is relatively expensive but also a small slice of the whole. Overall, the fee structure strongly supports long‑term performance and aligns well with best practices for cost‑efficient investing.
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