A growth-focused portfolio with heavy tech exposure and solid international diversification
Report created on Aug 6, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 46.00% -
QQ Invesco NASDAQ 100 ETF
QQQM - US46138G6492 21.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 21.00% -
NV NVIDIA Corporation
NVDA - US67066G1040 12.00%
This portfolio stands out for its significant allocation to the technology sector, primarily through the Vanguard Total Stock Market Index Fund ETF Shares, Invesco NASDAQ 100 ETF, and a direct investment in NVIDIA Corporation. The blend of ETFs provides broad exposure to the U.S. and international markets, while the direct stock holding introduces a concentrated bet on the tech industry's performance. This composition suggests a strategy leaning towards growth, leveraging the tech sector's potential for high returns, albeit with a higher risk profile due to the concentrated exposure.
Growth
Historically, this portfolio has demonstrated impressive growth, boasting a Compound Annual Growth Rate (CAGR) of 20.18%. The maximum drawdown of -35.14% indicates periods of significant volatility, likely influenced by the tech-heavy allocation. The days contributing to 90% of returns highlight the impact of short-term gains, which is characteristic of growth-oriented investments. Comparing this to benchmark indices would provide further context, but the raw numbers suggest strong performance in favorable market conditions.
Projection
Utilizing Monte Carlo simulations, which forecast future performance based on historical data and statistical methods, the portfolio shows a wide range of outcomes. The median projection suggests a potential 2,022.9% increase, with a high degree of variability indicated by the 5th and 67th percentiles. It's crucial to remember, however, that these simulations are speculative and depend heavily on past market behavior, which is not a reliable indicator of future results.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's allocation is overwhelmingly in stocks (99%), with a minimal cash reserve (1%). This asset class distribution underscores a growth-oriented strategy, favoring equity investments for their higher return potential over time. The lack of diversification into fixed income or alternative assets might increase volatility but aligns with the portfolio's aggressive growth objectives.
Sectors
- Technology 40%
- Financials 11%
- Consumer Discretionary 10%
- Telecommunications 9%
- Industrials 8%
- Health Care 7%
- Consumer Staples 5%
- Basic Materials 3%
- Energy 2%
- Utilities 2%
- Real Estate 2%
The sectoral allocation reveals a heavy tilt towards technology (40%), followed by financial services and consumer cyclicals. This concentration in tech, while promising for growth, suggests higher sensitivity to sector-specific risks, such as regulatory changes or market sentiment shifts. Balancing this with investments in less volatile sectors could mitigate risk without significantly compromising growth potential.
Regions
- North America 80%
- Europe Developed 9%
- Asia Emerging 3%
- Japan 3%
- Asia Developed 2%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographic diversification is primarily focused on North America (80%), with moderate exposure to developed Europe and emerging Asian markets. This distribution benefits from the stability of developed markets while capturing growth in emerging regions. However, the underrepresentation of emerging markets and other global regions might limit exposure to global growth opportunities, potentially affecting long-term returns.
Market capitalization
- Mega-cap 52%
- Large-cap 27%
- Mid-cap 15%
- Small-cap 4%
- Micro-cap 1%
The portfolio's market capitalization exposure leans heavily towards mega (52%) and big (27%) cap stocks, indicative of a preference for established, large-scale companies. While this may reduce volatility compared to smaller cap investments, diversifying into medium, small, or micro caps could offer higher growth potential and further risk mitigation through broader market exposure.
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, the portfolio appears well-positioned on the Efficient Frontier, suggesting an optimal balance given its current asset allocation. However, continuous review and potential rebalancing towards assets with differing risk-return profiles could further enhance portfolio efficiency, ensuring alignment with evolving market conditions and investment objectives.
Dividends
- Invesco NASDAQ 100 ETF 0.50%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Vanguard Total International Stock Index Fund ETF Shares 2.80%
- Weighted yield (per year) 1.24%
The portfolio's dividend yield stands at 1.24%, with the highest yield coming from the Vanguard Total International Stock Index Fund ETF Shares. While growth is the primary focus, dividends contribute to total returns, offering a modest income stream and potential for reinvestment. Considering higher dividend-yielding investments could provide a balance between growth and income, especially in volatile markets.
Ongoing product costs
- Invesco NASDAQ 100 ETF 0.15%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Vanguard Total International Stock Index Fund ETF Shares 0.05%
- Weighted costs total (per year) 0.06%
The portfolio's overall expense ratio (TotalTER) of 0.06% is impressively low, enhancing net returns over the long term. Keeping costs minimal is crucial in maximizing investment growth, particularly in growth-oriented portfolios where the compounding effect plays a significant role. This cost efficiency is a strong aspect of the portfolio's construction.
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