Focused US growth portfolio with tech tilt and efficient risk adjusted structure
Report created on Jul 18, 2024Risk profile
5/7
Diversification profile
2/5
Positions
-
QQ Invesco NASDAQ 100 ETF
QQQM - US46138G6492 50.00% -
VT Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 50.00%
The portfolio is very simple and clean: two US equity ETFs at 50% each, one tracking the NASDAQ 100 and the other the broad US stock market. That means 100% in stocks, 0% in bonds or alternatives, and everything in just two highly diversified vehicles. Simple structures are easier to understand and maintain, which is a big plus for long-term investing. The trade-off is that all risk is tied to one market and one asset class. For someone comfortable with equity ups and downs, this kind of streamlined setup can work well, as long as the lack of bonds and non-US assets is intentional rather than accidental.
Growth
Over the last several years, a $1,000 investment grew to about $1,935, which translates to a 12.91% compound annual growth rate (CAGR). CAGR is like your average speed on a road trip, smoothing out all the bumps along the way. This result slightly lagged the US market by 0.20% per year but beat the global market by 1.74% per year, which is solid. The max drawdown, at about -30%, shows that deep temporary drops are very possible. As always, past performance doesn’t guarantee future results, but it does show this approach has historically delivered strong growth with meaningful but not extreme volatility.
Asset classes
- Stocks 100%
All capital is in stocks, which maximizes exposure to long‑term growth but also maximizes sensitivity to stock market downturns. There’s no built‑in stabilizer like bonds or cash, which often act as cushions when markets fall. Compared with more balanced allocations that blend stocks and bonds, this setup will likely swing more day to day and year to year. On the upside, it keeps things straightforward and aligned with a growth‑oriented mindset. On the downside, it relies entirely on your willingness to endure big drawdowns without needing to sell at bad times to fund near‑term cash needs.
Sectors
- Technology 41%
- Telecommunications 13%
- Consumer Discretionary 11%
- Health Care 8%
- Consumer Staples 7%
- Industrials 7%
- Financials 6%
- Energy 2%
- Utilities 2%
- Basic Materials 2%
- Real Estate 1%
Sector exposure is clearly tilted toward technology at about 41%, with meaningful allocations to telecommunications and consumer-related areas, and smaller slices in health care, industrials, financials, and others. This tech and communications focus has been a big tailwind in recent years, but it can be more sensitive when interest rates rise or when markets rotate toward more defensive areas. The sector spread is still broad enough that you’re not “all in” on one niche, which is good. Overall, this sector mix aligns well with modern equity benchmarks but with a bit extra growth flavor from the tech heaviness.
Regions
- North America 99%
- Europe Developed 1%
Geographically, the portfolio is almost pure US, with roughly 99% in North America and a tiny amount in developed Europe. This tight focus has been beneficial in the last decade, since US markets have outperformed many other regions. However, it also means that economic, political, or regulatory issues specific to the US flow directly into the portfolio. Global benchmarks usually hold more non‑US exposure, so this is a deliberate home‑bias tilt. For someone who believes the US will remain a leader in innovation and profitability, this is comfortable, but it does sacrifice some diversification across countries and currencies.
Market capitalization
- Mega-cap 47%
- Large-cap 32%
- Mid-cap 15%
- Small-cap 3%
- Micro-cap 1%
Most of the portfolio sits in very large companies: around 47% in mega‑caps and 32% in large‑caps, with smaller allocations down the size spectrum to mid, small, and micro‑caps. Large and mega‑caps often provide more stability and liquidity, while mid and small caps can offer higher growth but more volatility. This structure leans toward the big household‑name firms that dominate major indexes, which is consistent with broad passive investing. The modest slice in smaller companies adds some growth potential without dominating risk, giving a good balance between stability and opportunity within the equity universe.
True holdings
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NV NVIDIA Corporation 7.37%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AA Apple Inc 6.64%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
MS Microsoft Corporation 5.05%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AM Amazon.com Inc 3.78%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class A 3.13%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
ME Meta Platforms Inc. 2.85%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
TS Tesla Inc 2.76%
Part of fund(s):- Invesco NASDAQ 100 ETF
- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard Total Stock Market Index Fund ETF Shares
-
GO Alphabet Inc Class C 2.71%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
AV Broadcom Inc 2.67%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard Total Stock Market Index Fund ETF Shares
-
WM Walmart Inc. Common Stock 1.63%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Top 10 total 38.61%
Looking under the hood, a lot of exposure is concentrated in a handful of mega-cap names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Meta, Tesla, and Broadcom. Several of these appear in both ETFs, creating hidden overlap even though there are only two funds. That means the portfolio is more dependent on the fortunes of these big companies than it might look at first glance. This has helped historically, but it does increase sensitivity to any downturns in these names. Being aware of this “double counting” is useful when thinking about how comfortable you are with a growth‑heavy, mega‑cap core.
Factors
Factor exposure looks pretty balanced overall, with neutral tilts to size, momentum, quality, and low volatility. “Neutral” here means roughly similar to the broad market, not a big bet in either direction. Value and yield both show mildly low exposure, which fits with a growth‑oriented, tech‑heavy approach where many companies reinvest profits instead of paying high dividends. Factor investing is about leaning into traits like cheapness (value) or trendiness (momentum) that research has linked to returns. In this case, the factor profile is mainly market‑like with a gentle bias away from classic value and income characteristics.
Risk contribution
-
Invesco NASDAQ 100 ETF
Weight: 50.00% 56.5% -
Vanguard Total Stock Market Index Fund ETF Shares
Weight: 50.00% 43.5%
Risk contribution shows how much each holding drives the portfolio’s ups and downs, which can be very different from simple weight. Even though both ETFs are 50% by weight, the NASDAQ 100 fund contributes about 56% of the total risk, while the total market ETF contributes around 44%. That tells you the growth‑heavy NASDAQ slice is the main risk engine. This is not necessarily a problem; it just means most of your volatility lives in that one fund. If you ever wanted a smoother ride, slightly reducing that ETF’s share would be the most direct way to dial risk down.
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.
On the risk‑return chart, the current mix sits right on or very near the efficient frontier, with a Sharpe ratio of 0.62 versus 0.71 for the optimal and minimum‑variance allocations. The Sharpe ratio compares return to volatility, like measuring how many “units” of return you get for each “unit” of risk. Being on the frontier means that, given just these two ETFs, your risk level and expected return are already arranged efficiently. You’re not leaving obvious risk‑adjusted return on the table. Any changes from here are more about adjusting risk comfort or diversification preferences, not fixing inefficiency.
Dividends
- Invesco NASDAQ 100 ETF 0.50%
- Vanguard Total Stock Market Index Fund ETF Shares 0.90%
- Weighted yield (per year) 0.70%
The blended dividend yield is around 0.70%, which is relatively low and typical for a growth‑tilted US equity mix. Dividend yield is the cash payout you receive each year relative to your investment, like rent from owning a property. Here, most of the expected return comes from price appreciation rather than regular cash income. That can be attractive for long‑term compounding, especially in tax‑advantaged accounts, but it won’t suit someone who needs substantial ongoing income from their investments. For growth‑focused investors, this lower yield is a natural by‑product of holding many high‑growth, reinvesting companies.
Ongoing product costs
- Invesco NASDAQ 100 ETF 0.15%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Weighted costs total (per year) 0.09%
Costs are a real strength here. The total expense ratio (TER) is about 0.09%, which is extremely low and firmly in best‑practice territory. TER is the annual fee taken by the fund provider, and small differences compound massively over decades. Keeping costs this low means more of the market’s return stays in your pocket, which is one of the few things investors can truly control. This allocation is well-balanced on the cost side and aligns closely with global standards for efficient, passive investing. From a fee perspective, you’re very much on the right track.
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