A growth-focused portfolio with heavy tech exposure and low diversification

Report created on Aug 20, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is heavily weighted towards equity, with a significant concentration in technology stocks and a strong bias towards US markets. This composition suggests a growth-oriented strategy, albeit with a low level of diversification across sectors and geographies. The bulk of the portfolio is in the Vanguard S&P 500 ETF, which provides broad exposure to the US equity market, while the other holdings further concentrate the portfolio's exposure to growth and technology sectors.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 16.95%, the portfolio has demonstrated strong historical performance. This high return rate is indicative of the growth-focused strategy's success in recent years, particularly in the technology sector. However, the maximum drawdown of -33.05% underscores the potential volatility and risk associated with this type of portfolio. The days contributing most to returns highlight the market's tendency for significant fluctuations.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential future values for this portfolio. While the majority of simulations (995 out of 1,000) predict positive returns, the substantial spread between the 5th and 67th percentiles (121.4% to 942.0%) underscores the high level of uncertainty and risk. These projections are useful for understanding potential outcomes but should not be seen as guarantees.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no presence in bonds, cash, or alternative asset classes. This singular focus on equities enhances growth potential but also increases susceptibility to market volatility. Diversifying across different asset classes can provide a buffer against market downturns and reduce overall portfolio risk.

Sectors Info

  • Technology
    43%
  • Financials
    11%
  • Consumer Discretionary
    11%
  • Telecommunications
    9%
  • Health Care
    8%
  • Industrials
    7%
  • Consumer Staples
    4%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    1%

A 43% allocation to technology underscores a heavy bet on this sector's continued growth and innovation. While technology has been a strong performer, this concentration increases risk, especially during market corrections or shifts in investor sentiment. Balancing sector allocations can mitigate this risk while still capturing growth opportunities in other areas.

Regions Info

  • North America
    92%
  • Europe Developed
    2%
  • Japan
    1%

The portfolio's geographic exposure is overwhelmingly in North America (92%), with minimal exposure to developed and emerging markets outside the US. This concentration enhances exposure to US market growth but limits potential gains from global economic trends and diversification benefits from non-correlated markets.

Market capitalization Info

  • Mega-cap
    53%
  • Large-cap
    30%
  • Mid-cap
    15%
  • Small-cap
    2%

The focus on mega (53%) and big (30%) cap stocks aligns with the portfolio's growth and risk profile, favoring established companies with potential for steady growth. However, the minimal exposure to small and micro-cap stocks limits opportunities for outsized returns from smaller companies' growth.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Vanguard Russell 1000 Growth Index Fund ETF Shares
    Vanguard Information Technology Index Fund ETF Shares
    Vanguard Total World Stock Index Fund ETF Shares
    High correlation

The high correlation among the portfolio's holdings, particularly within the US equity market, limits the diversification benefits. While these assets individually represent sound investment choices, their similar performance patterns mean that the portfolio may not be well protected against sector-specific downturns.

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.

Optimizing the portfolio involves addressing the high correlation between assets to enhance diversification. This could involve reducing overlap by reallocating some investments from highly correlated assets to those with lower correlations or different sectors and geographies. Such adjustments could help achieve a better risk-return profile by spreading risk more evenly across the portfolio.

Dividends Info

  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.60%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard Russell 1000 Growth Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 1.00%

The overall dividend yield of 1.00% reflects the growth orientation of the portfolio, as growth stocks typically reinvest earnings rather than pay out dividends. While this supports the portfolio's capital appreciation focus, investors seeking income alongside growth may find this yield insufficient.

Ongoing product costs Info

  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Russell 1000 Growth Index Fund ETF Shares 0.08%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.05%

The portfolio benefits from low total expense ratios (TER), averaging 0.05% across the holdings. This cost efficiency is commendable, as lower costs directly translate to higher net returns over time. Keeping investment costs low is a key factor in maximizing long-term portfolio growth.

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