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

Report created on Aug 23, 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 concentrated in three ETFs, all rooted in the stock market, with a significant emphasis on technology and large-cap companies. The Vanguard S&P 500 ETF, making up half of the portfolio, provides broad exposure to the largest U.S. companies. The Invesco NASDAQ 100 ETF and Vanguard Growth Index Fund ETF Shares, each constituting a quarter of the portfolio, further concentrate on technology and growth sectors. This composition aligns with a growth-oriented strategy but exhibits low diversity, increasing potential volatility and risk.

Growth Info

Historically, the portfolio has demonstrated a strong Compound Annual Growth Rate (CAGR) of 16.15%, with a significant drawdown of -29.71%. This performance suggests a high-growth potential but comes with substantial volatility. The days contributing to 90% of returns being limited to 20 indicates that the portfolio's gains are heavily reliant on brief periods of significant market upswings, emphasizing the importance of timing in this investment strategy.

Projection Info

Monte Carlo simulations, which use historical data to forecast future performance under various scenarios, suggest a wide range of outcomes for this portfolio, from a 5th percentile growth of 104.9% to a 67th percentile growth of 961.0%. While the majority of simulations show positive returns, the broad range underscores the high risk and potential for volatility associated with this portfolio.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, with no allocation to other asset classes such as bonds or real estate. This singular focus on equities enhances growth potential but lacks the risk mitigation benefits that diversification across different asset classes can provide. Including other asset classes could reduce volatility and improve the portfolio's risk-adjusted returns over time.

Sectors Info

  • Technology
    44%
  • Consumer Discretionary
    12%
  • Telecommunications
    12%
  • Financials
    8%
  • Health Care
    7%
  • Industrials
    6%
  • Consumer Staples
    4%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    1%
  • Basic Materials
    1%

Sector allocation is heavily skewed towards technology at 44%, with consumer cyclicals and communication services also having significant representation. This sector concentration increases exposure to sector-specific risks, such as regulatory changes or technological shifts, which could disproportionately impact the portfolio's performance.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

Geographic exposure is overwhelmingly North American (99%), with minimal exposure to developed European markets (1%) and no presence in emerging or other developed Asian markets. This geographic concentration limits global diversification and exposure to potential growth in international markets.

Market capitalization Info

  • Mega-cap
    54%
  • Large-cap
    31%
  • Mid-cap
    14%

The portfolio's focus on mega (54%) and big (31%) cap stocks, with medium cap stocks making up the remainder, aligns with its growth orientation but limits exposure to the potentially higher growth rates of smaller companies. Including small-cap stocks could introduce more growth opportunities, albeit with higher risk.

Redundant positions Info

  • Invesco NASDAQ 100 ETF
    Vanguard Growth Index Fund ETF Shares
    Vanguard S&P 500 ETF
    High correlation

The high correlation among the portfolio's assets, particularly the ETFs tracking the NASDAQ 100 and S&P 500, limits diversification benefits. This correlation implies that the assets are likely to move in tandem, reducing the portfolio's ability to mitigate risk through diversification.

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.

To optimize the risk-return profile, consider reducing overlap among the highly correlated ETFs. Diversifying across different asset classes, sectors, and geographies could improve the portfolio's resilience against market volatility and downturns, moving it closer to the Efficient Frontier, where it achieves the best possible risk-return ratio.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Weighted yield (per year) 0.82%

The portfolio's overall dividend yield of 0.82% reflects a moderate income component, with the Vanguard S&P 500 ETF contributing the most significant yield. While income may not be the primary goal of this growth-focused portfolio, dividends can provide a steady income stream and contribute to total returns.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.06%

The portfolio's total expense ratio (TER) of 0.06% is impressively low, enhancing net returns by minimizing costs. This cost efficiency is a positive aspect, especially important in a growth-oriented portfolio where every percentage point of return can significantly impact long-term growth.

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