Growth-focused portfolio with high tech exposure and low diversification

Report created on Oct 21, 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.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio suits an investor with a high risk tolerance and a primary goal of capital growth. It's tailored for individuals who are comfortable with significant market fluctuations and have a long-term investment horizon, allowing them to ride out the inherent volatility of a tech-heavy and large-cap-focused strategy. The investor likely prioritizes high returns over portfolio stability and income generation, making this concentrated approach a strategic fit for their aggressive growth objectives.

Positions

The portfolio is heavily concentrated, with nearly 60% in a large-cap index fund and over 40% in a technology sector ETF. This composition reflects a strong bias towards large-cap stocks and the technology sector, limiting exposure to other sectors and asset classes. While this concentration has likely contributed to the portfolio's high growth, it also increases vulnerability to sector-specific risks and market fluctuations, particularly within the technology sector.

Growth Info

Historically, this portfolio has shown impressive growth with a Compound Annual Growth Rate (CAGR) of 18.52%. However, it's important to note that this performance comes with a significant level of risk, as evidenced by a maximum drawdown of -32.89%. This drawdown indicates the portfolio's value can decrease sharply during market downturns, especially given its high exposure to the volatile technology sector. While the days contributing to 90% of returns are relatively few, this highlights the portfolio's dependence on short-term gains, which can be risky.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. The median projection suggests a potential increase of 1,043.9%, but it's crucial to remember that these projections are inherently uncertain. The simulations assume market conditions and volatility will mirror the past, which may not always be the case. Therefore, while the projections are optimistic, they should be viewed as one of many tools in evaluating potential future performance.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, with no allocation to bonds, real estate, or alternative investments. This singular focus on equities maximizes potential growth but also increases risk, particularly in volatile market conditions. A more diversified asset class mix could provide a buffer during downturns, potentially smoothing out returns over time without significantly sacrificing growth potential.

Sectors Info

  • Technology
    59%
  • Financials
    9%
  • Consumer Discretionary
    6%
  • Telecommunications
    6%
  • Health Care
    6%
  • Industrials
    5%
  • Consumer Staples
    3%
  • Energy
    2%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

The technology sector dominates the portfolio, comprising nearly 60% of its value. While this concentration has likely been a major growth driver, it also exposes the portfolio to sector-specific risks, such as regulatory changes or shifts in consumer technology preferences. The remaining allocation spans several sectors but with minimal exposure, suggesting an opportunity to balance sector risks better while still targeting growth.

Regions Info

  • North America
    99%

Geographic exposure is almost exclusively North American, with negligible international diversification. This concentration benefits from strong U.S. market performance but lacks exposure to potential growth in other regions. Expanding into developed or emerging markets outside North America could reduce geographic risk and tap into different economic cycles, potentially enhancing returns.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    31%
  • Mid-cap
    16%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's market capitalization exposure leans heavily towards mega and large-cap stocks, which are typically less volatile than smaller companies. This bias towards larger companies is consistent with the portfolio's growth profile but limits exposure to the potentially higher growth rates of mid and small-cap stocks. Introducing a more balanced market cap distribution could improve diversification without drastically altering the portfolio's growth trajectory.

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.

Considering the Efficient Frontier, which aims to maximize returns for a given level of risk, there's potential to optimize the portfolio. Currently, the heavy emphasis on technology stocks and large-cap equities may not offer the best risk-return balance. Adjusting the asset allocation to include a broader mix of sectors, asset classes, and geographic regions could enhance the portfolio's efficiency, potentially delivering similar or improved returns with reduced volatility.

Dividends Info

  • Vanguard Information Technology Index Fund ETF Shares 0.40%
  • VANGUARD LARGE-CAP INDEX FUND ADMIRAL SHARES 1.10%
  • Weighted yield (per year) 0.82%

The portfolio's overall dividend yield is moderate, reflecting a balance between growth-focused investments and income generation. While the technology ETF has a lower yield, the large-cap index fund provides a steadier income stream. For investors seeking both growth and income, this blend may be appropriate, but there's room to optimize for higher income without significantly compromising growth, particularly for those with longer-term horizons or specific income needs.

Ongoing product costs Info

  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • VANGUARD LARGE-CAP INDEX FUND ADMIRAL SHARES 0.05%
  • Weighted costs total (per year) 0.07%

The portfolio benefits from low costs, with a total expense ratio (TER) of just 0.07%. This efficiency is crucial for long-term growth, as lower costs directly translate to higher net returns. The choice of low-cost funds is commendable and aligns with best practices for maximizing investment performance over time.

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