Aggressive growth portfolio with high tech exposure and notable individual stock concentration

Report created on Aug 16, 2025

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.

Positions

This portfolio is heavily weighted towards technology, with significant positions in individual tech stocks like NVIDIA and Microsoft, and tech-focused ETFs. The concentration in tech is complemented by industrials and communication services, but it lacks diversity across broader sectors and asset classes, as it is entirely composed of stocks. This setup suggests a high-growth but high-risk strategy, leaning towards investors with an aggressive risk profile.

Growth Info

Historically, this portfolio has delivered a Compound Annual Growth Rate (CAGR) of 33.51%, with a maximum drawdown of -39.17%. These figures indicate a strong performance, outpacing many traditional benchmarks, but also highlight the portfolio's volatility. The days contributing to 90% of returns are notably few, suggesting that its performance is highly concentrated in specific periods, which is typical for high-growth strategies.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, show a wide range of potential growth, with the median outcome suggesting a 4,009.3% increase. While these projections offer a positive outlook, it's crucial to remember that they are based on past performance, which is not a reliable indicator of future results. The high percentile outcomes underscore the portfolio's aggressive growth potential, but the range of outcomes also reflects significant risk.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, which, while potentially offering high returns, also exposes investors to higher volatility compared to portfolios that include bonds or other asset classes. This singular focus on stocks, especially within the tech sector, magnifies both the potential for high returns and the risk of substantial losses, particularly in market downturns.

Sectors Info

  • Technology
    60%
  • Industrials
    22%
  • Telecommunications
    7%
  • Consumer Discretionary
    2%
  • Financials
    1%
  • Health Care
    1%
  • Consumer Staples
    1%

With 60% of the portfolio in technology, its performance is closely tied to the tech sector's fortunes. While tech has been a strong performer, this concentration increases vulnerability to sector-specific risks. The balance with industrials and communication services provides some diversification, but the overall sectoral concentration remains high. Diversifying across a broader range of sectors could reduce risk without necessarily compromising potential returns.

Regions Info

  • North America
    88%
  • Europe Developed
    11%
  • Asia Developed
    1%

The geographic allocation is heavily skewed towards North America (88%), with minimal exposure to Europe and almost none to emerging markets. This concentration in developed markets, particularly the U.S., aligns with the portfolio's tech-heavy focus but limits global diversification benefits. Increasing exposure to emerging markets could offer growth opportunities and reduce geographic risk concentration.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    45%
  • Mid-cap
    7%
  • Small-cap
    1%

The focus on mega and big cap stocks (92% combined) aligns with the portfolio's growth and stability objectives, as these companies often have more established business models. However, the limited exposure to medium, small, and micro caps restricts opportunities for outsized returns from smaller, faster-growing companies. A slight increase in allocation to smaller caps could enhance growth potential while adding 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.

The portfolio's current risk-return profile suggests room for optimization towards the Efficient Frontier, where the risk-return ratio is maximized. This might involve adjusting asset allocations to reduce volatility without significantly compromising potential returns. Given the portfolio's aggressive stance, optimization should focus on maintaining growth potential while enhancing diversification and reducing unnecessary risk exposure.

Dividends Info

  • Broadcom Inc 0.80%
  • First Trust NASDAQ Cybersecurity ETF 0.30%
  • EMCOR Group Inc 0.20%
  • Eaton Corporation PLC 0.90%
  • Microsoft Corporation 0.50%
  • nVent Electric PLC 0.90%
  • VanEck Semiconductor ETF 0.40%
  • Invesco S&P 500® Quality ETF 1.00%
  • Vertiv Holdings Co 0.10%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Communication Services Select Sector SPDR® Fund 1.00%
  • Weighted yield (per year) 0.41%

The portfolio's overall dividend yield is modest at 0.41%, reflecting its focus on growth over income. For investors prioritizing capital appreciation, this yield may be acceptable, but those seeking income might find it lacking. Considering the portfolio's aggressive growth stance, the current dividend strategy appears appropriate, though investors could consider balancing with higher-yielding assets for income diversification.

Ongoing product costs Info

  • First Trust NASDAQ Cybersecurity ETF 0.59%
  • iShares Expanded Tech-Software Sector ETF 0.41%
  • VanEck Semiconductor ETF 0.35%
  • Invesco S&P 500® Quality ETF 0.15%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Communication Services Select Sector SPDR® Fund 0.09%
  • Weighted costs total (per year) 0.09%

The portfolio's costs vary significantly across ETFs, from as low as 0.04% to as high as 0.59%. While the overall expense ratio (TotalTER) is not specified, minimizing costs is crucial for enhancing long-term returns. Investors should continually assess the value provided by higher-cost funds and consider lower-cost alternatives if performance does not justify the expense.

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