Growth-oriented portfolio with a strong tech focus and limited diversification
Report created on Oct 16, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 66.67% -
QQ Invesco NASDAQ 100 ETF
QQQM - US46138G6492 33.33%
The portfolio is comprised of two ETFs: the Vanguard Total Stock Market Index Fund ETF Shares, making up two-thirds of the portfolio, and the Invesco NASDAQ 100 ETF, constituting the remaining third. This composition indicates a heavy reliance on the stock market, particularly within the technology sector, given the NASDAQ's tech-heavy nature. The Vanguard ETF offers broader exposure but is still significantly influenced by large-cap stocks, including tech giants. This setup suggests a growth-focused strategy but with low diversification across asset classes and sectors, increasing vulnerability to market volatility within the tech industry.
Growth
Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 15.96%, with a maximum drawdown of -28.55%. The days contributing to 90% of returns number just 21, highlighting the portfolio's performance is heavily reliant on short, significant market movements, often characteristic of growth-oriented investments. While past performance is impressive, it's crucial to remember that it doesn't guarantee future results. The high CAGR is indicative of the portfolio's aggressive growth strategy, but the substantial drawdown reflects the high risk associated with this approach.
Projection
Monte Carlo simulations, which use historical data to project potential future outcomes, suggest a wide range of possibilities for this portfolio. The 50th percentile outcome indicates a 719.5% increase, while the 5th and 67th percentiles show 118.3% and 1,029.3% increases, respectively. These outcomes underscore the portfolio's high growth potential but also its significant risk, as evidenced by the broad spread between the lower and upper percentiles. It's important to note that these projections are hypothetical and subject to the limitations of past performance data.
Asset classes
- Stocks 100%
The portfolio is entirely allocated to stocks, with no diversification into other asset classes like bonds or real estate. This allocation aligns with the portfolio's growth profile but increases exposure to market volatility. Diversification across different asset classes can mitigate risk by spreading exposure beyond the stock market, which may be particularly volatile during economic downturns or market corrections.
Sectors
- Technology 40%
- Telecommunications 12%
- Consumer Discretionary 11%
- Financials 9%
- Health Care 8%
- Industrials 7%
- Consumer Staples 5%
- Energy 2%
- Utilities 2%
- Real Estate 2%
- Basic Materials 2%
Sector allocation heavily favors technology, followed by communication services and consumer cyclicals. This concentration in high-growth sectors can offer significant upside during bull markets but may also lead to increased volatility and drawdowns during market corrections, especially in the tech sector. Diversifying across a broader range of sectors could reduce risk while still providing growth opportunities.
Regions
- North America 99%
- Europe Developed 1%
With 99% of assets allocated to North America, primarily the United States, the portfolio has minimal exposure to international markets. This geographic concentration can limit diversification benefits and exposure to global growth opportunities. Expanding into developed European markets or emerging markets could provide additional diversification and growth potential.
Market capitalization
- Mega-cap 46%
- Large-cap 31%
- Mid-cap 17%
- Small-cap 4%
- Micro-cap 1%
The portfolio's market capitalization breakdown shows a strong focus on mega and big-cap stocks, which is typical for growth-oriented portfolios seeking stability and growth from established companies. However, this focus can limit exposure to the potentially higher growth rates of medium, small, and micro-cap stocks. Incorporating a wider range of market caps could enhance diversification and growth potential.
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, this portfolio might not be fully optimized for the best possible risk-return ratio due to its limited diversification and high concentration in the tech sector. While it currently aligns with a growth-focused strategy, there may be room to improve its efficiency by adjusting asset allocation to include a broader mix of sectors, geographies, and asset classes without significantly sacrificing growth potential.
Dividends
- Invesco NASDAQ 100 ETF 0.50%
- Vanguard Total Stock Market Index Fund ETF Shares 1.10%
- Weighted yield (per year) 0.90%
The portfolio's dividend yield averages 0.90%, with the Vanguard ETF offering a higher yield than the Invesco ETF. While dividends contribute to total returns, the portfolio's primary focus appears to be capital appreciation rather than income generation. Investors seeking income in addition to growth might consider diversifying into assets with higher dividend yields or fixed income securities.
Ongoing product costs
- Invesco NASDAQ 100 ETF 0.15%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Weighted costs total (per year) 0.07%
The portfolio's total expense ratio (TER) of 0.07% is impressively low, enhancing its long-term return potential by minimizing costs. This cost efficiency is a strong point, particularly for a growth-focused portfolio where even small savings can compound significantly over time. Maintaining low costs while potentially diversifying further could continue to support better net returns.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey