A growth-oriented portfolio with a strong focus on US equities and technology sector

Report created on Aug 16, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards US equities, with a significant focus on the technology sector. The allocation includes 40% in the Invesco NASDAQ 100 ETF, 40% in the Vanguard S&P 500 ETF, and 20% in the Vanguard Total International Stock Index Fund ETF Shares. This composition suggests a growth-oriented strategy, given the high concentration in technology and large-cap stocks, which are typically associated with higher growth potential. However, this focus also introduces sector-specific risks and geographical concentration.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 15.17%, with a maximum drawdown of -29.12%. These figures indicate a strong performance, albeit with significant volatility. The days contributing to 90% of returns being limited to 19.0 suggests that the portfolio's performance is heavily reliant on a few strong market days, a common characteristic of growth-focused investments. Comparing these metrics to benchmarks would help assess relative performance, but the high CAGR is undoubtedly attractive.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of possible outcomes, show a median expected growth of 543.8% over an unspecified period. This optimistic projection aligns with the growth-oriented nature of the portfolio. However, it's crucial to remember that such simulations have limitations and cannot predict future market conditions with certainty. The wide range of outcomes (from the 5th percentile at 93.2% to the 67th percentile at 770.7%) underscores the inherent uncertainty in investing.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely invested in stocks (99%), with a minimal cash holding (1%). This asset class allocation supports a high-growth investment strategy but also increases risk, particularly in market downturns. Diversification across different asset classes could provide a buffer against stock market volatility, potentially smoothing out returns over time.

Sectors Info

  • Technology
    37%
  • Consumer Discretionary
    12%
  • Telecommunications
    11%
  • Financials
    10%
  • Industrials
    8%
  • Health Care
    7%
  • Consumer Staples
    6%
  • Basic Materials
    3%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    2%

The technology sector dominates the portfolio at 37%, followed by consumer cyclicals and communication services. This sectoral distribution is typical for growth-focused portfolios but may increase susceptibility to sector-specific downturns. For instance, technology stocks can be highly volatile in response to interest rate changes. Diversifying more evenly across sectors could mitigate some of this risk.

Regions Info

  • North America
    80%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

With 80% of assets allocated to North America, the portfolio has a strong home bias. While this may reflect familiarity and confidence in the US market, it also limits exposure to potential growth in other regions. The modest allocations to developed Europe, emerging Asia, and other areas offer some international diversification, but increasing these could enhance global exposure and reduce geographic concentration risk.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    33%
  • Mid-cap
    15%
  • Small-cap
    1%

The focus on mega (50%) and big (33%) cap stocks underscores the portfolio's growth and stability orientation, as these companies are generally more established and less volatile than smaller companies. However, the inclusion of medium, small, and micro-cap stocks, albeit in smaller proportions, adds a layer of diversification and potential for higher returns, albeit with increased risk.

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, it's possible that the portfolio's current allocation is not fully optimized for the best risk-return ratio. Adjusting the allocation could potentially enhance returns for a given level of risk. However, any optimization should consider the investor's risk tolerance, investment horizon, and specific financial goals.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.22%

The dividend yields provided by the ETFs, averaging 1.22% across the portfolio, contribute to the total return. While growth stocks are not typically known for high dividends, this additional income can offer a modest buffer during market volatility. Reinvesting these dividends can also compound growth over time.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.08%

The portfolio's total expense ratio (TER) of 0.08% is impressively low, which is beneficial for long-term performance as lower costs translate directly into higher returns for investors. This cost efficiency is a strong aspect of the portfolio, reflecting well-chosen funds that manage to keep expenses minimal.

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