Balanced growth portfolio with a tech tilt and innovative exposure

Report created on Jun 12, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio showcases a strategic blend of ETFs and stocks, emphasizing technology and consumer discretionary sectors. The inclusion of both high-growth tech stocks like Alphabet Inc and Meta Platforms, alongside diversified ETFs such as the JPMorgan Equity Premium Income ETF, suggests an approach designed to capture growth while attempting to generate income. The portfolio's structure, with a significant weighting towards equities (92%), reflects a growth-oriented strategy, albeit with a moderate risk profile given the presence of bond and dividend-yielding assets.

Growth Info

Historically, this portfolio has delivered a Compound Annual Growth Rate (CAGR) of 13.96%, with a notable maximum drawdown of -33.27%. These figures indicate a strong performance trajectory, albeit with periods of significant volatility. The days contributing most to returns are relatively few, highlighting the impact of short-term gains. When benchmarked against a diversified growth portfolio standard, this performance suggests effective asset selection but also underscores the inherent risks associated with a growth-focused strategy.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential future outcomes, suggest a wide range of possibilities for this portfolio. With a median projected growth of 17.6% but a possibility of significant declines (as low as -96.2% in the 5th percentile), these projections underscore the high-risk, high-reward nature of this investment strategy. It's important to remember, however, that these simulations are hypothetical and cannot predict future market conditions with certainty.

Asset classes Info

  • Stocks
    92%
  • Other
    4%
  • Bonds
    2%
  • No data
    1%
  • Cash
    1%

The portfolio's asset allocation leans heavily on stocks (92%), with a minimal presence in bonds (2%) and a small portion in other assets (4%). This composition is typical of growth-oriented portfolios seeking higher returns, albeit at increased risk levels. The stock allocation spans across several sectors and includes a mix of ETFs and individual stocks, which should, in theory, offer a balance between risk and return. However, the low bond allocation might limit the portfolio's ability to hedge against market volatility.

Sectors Info

  • Technology
    27%
  • Telecommunications
    19%
  • Consumer Discretionary
    17%
  • Financials
    11%
  • Industrials
    7%
  • Consumer Staples
    5%
  • Health Care
    4%
  • Energy
    2%
  • Basic Materials
    1%
  • Utilities
    1%

Sector allocation within this portfolio reveals a significant emphasis on technology (27%) and communication services (19%), followed by consumer cyclicals (17%). This sectoral focus aligns with a growth investment strategy, as these areas are often associated with high growth potential. However, such concentration also increases susceptibility to sector-specific risks, such as regulatory changes or economic downturns affecting discretionary spending.

Regions Info

  • North America
    85%
  • Asia Developed
    4%
  • Europe Developed
    2%
  • Asia Emerging
    1%

Geographically, the portfolio is heavily weighted towards North America (85%), with minimal exposure to developed markets in Asia (4%) and Europe (2%), and almost no presence in emerging markets. This concentration in the U.S. market could limit global diversification benefits and expose the portfolio to regional economic and political risks. Broadening geographic exposure could potentially reduce volatility and improve long-term returns.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    27%
  • Mid-cap
    13%
  • Small-cap
    4%
  • No data
    2%
  • Micro-cap
    1%

The portfolio's allocation by market capitalization shows a preference for mega (48%) and large-cap (27%) companies, which is common in growth-focused portfolios seeking stability and consistent returns. However, this emphasis may limit exposure to the potentially higher growth opportunities found in smaller companies. Including a broader mix of market caps could enhance diversification and possibly increase the portfolio's growth potential.

Redundant positions Info

  • Direxion Daily Semiconductor Bull 3X Shares
    VanEck Semiconductor ETF
    High correlation

The presence of highly correlated assets, such as the Direxion Daily Semiconductor Bull 3X Shares and the VanEck Semiconductor ETF, indicates potential redundancy within the portfolio. These overlapping positions may not contribute significantly to diversification, potentially increasing the portfolio's risk without a corresponding increase in expected returns. Streamlining these holdings could enhance efficiency by reducing unnecessary exposure to similar risks.

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.

Regarding risk versus return optimization, this portfolio could benefit from adjustments to reduce overlap and enhance diversification. By focusing on the Efficient Frontier, the investor can aim to achieve the best possible risk-return ratio. This might involve reallocating assets to reduce exposure to highly correlated investments and potentially increasing the allocation to underrepresented sectors or geographies to improve diversification.

Dividends Info

  • Apple Inc 0.50%
  • ProShares Bitcoin Strategy ETF 54.60%
  • Fidelity® Total Bond ETF 4.60%
  • Alphabet Inc Class A 0.30%
  • iShares U.S. Medical Devices ETF 0.40%
  • JPMorgan Equity Premium Income ETF 8.30%
  • Meta Platforms Inc. 0.30%
  • Microsoft Corporation 0.70%
  • Global X U.S. Infrastructure Development ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.90%
  • VanEck Semiconductor ETF 0.40%
  • Direxion Daily Semiconductor Bull 3X Shares 1.60%
  • Invesco S&P 500® Quality ETF 1.10%
  • Vanguard Consumer Discretionary Index Fund ETF Shares 0.80%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.80%
  • Financial Select Sector SPDR® Fund 1.40%
  • Weighted yield (per year) 4.09%

Dividends contribute to the portfolio's total return, with a total yield of 4.09%. Notably, the ProShares Bitcoin Strategy ETF and the JPMorgan Equity Premium Income ETF offer high yields, enhancing income generation. However, the focus on high-dividend assets should be balanced with growth prospects and risk considerations, as high yields can sometimes indicate underlying company or sector issues.

Ongoing product costs Info

  • ProShares Bitcoin Strategy ETF 0.95%
  • Fidelity® Total Bond ETF 0.36%
  • iShares U.S. Medical Devices ETF 0.40%
  • JPMorgan Equity Premium Income ETF 0.35%
  • Global X U.S. Infrastructure Development ETF 0.47%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • VanEck Semiconductor ETF 0.35%
  • Direxion Daily Semiconductor Bull 3X Shares 0.76%
  • Invesco S&P 500® Quality ETF 0.15%
  • Vanguard Consumer Discretionary Index Fund ETF Shares 0.10%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Financial Select Sector SPDR® Fund 0.09%
  • Weighted costs total (per year) 0.17%

The portfolio's total expense ratio (TER) of 0.17% is relatively low, which is beneficial for long-term growth as it minimizes the drag on returns caused by fees. Keeping costs low is crucial in maximizing net returns, especially in a growth-oriented portfolio where compound interest plays a significant role in wealth accumulation.

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.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey