A highly concentrated growth focused equity portfolio with strong tech tilt and limited diversification

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This setup fits an investor who is comfortable with meaningful ups and downs in pursuit of strong long-term growth. They likely have a long investment horizon, think in terms of decades rather than years, and can emotionally handle drawdowns of 30% or more without panicking. Their main goal is probably wealth accumulation rather than steady income, and they may be particularly optimistic about innovation, technology, and the long-term prospects of equity markets. A higher tolerance for concentration risk and a preference for keeping things relatively simple with a small number of ETFs also fits this profile, as does a willingness to stay invested through full market cycles.

Positions

  • State Street® SPDR® Portfolio S&P 500® ETF
    SPYM - US78464A8541
    50.00%
  • iShares S&P 500 Growth ETF
    IVW - US4642873099
    20.00%
  • Avantis® U.S. Small Cap Value ETF
    AVUV - US0250728773
    15.00%
  • VanEck Semiconductor ETF
    SMH - US92189F6768
    15.00%

This portfolio is 100% in stock ETFs, with half in a broad US large cap fund, plus a sizable tilt to growth, small cap value, and a focused semiconductor position. Against a typical growth benchmark, this is more concentrated and more aggressive because there’s no stabilizing bond or cash sleeve. That matters because all positions tend to move with the stock market, which can amplify both gains and losses. Keeping the broad ETF as the core is a strong anchor, but the overlap between the broad fund and the growth ETF adds concentration more than new exposure. Tightening duplication while keeping intentional tilts could make the structure cleaner and easier to manage.

Growth Info

Historically, the portfolio shows a very strong compound annual growth rate (CAGR) of about 20.8%. CAGR is like the “average speed” of your money over time, smoothing out all the ups and downs. A $10,000 starting amount growing at that rate for 10 years would hypothetically reach around $67,000, far ahead of broad market averages, which is impressive. The trade-off is a maximum drawdown of about -34.6%, meaning at one point it was down roughly a third from a peak. That level of drop is consistent with a growth-oriented equity strategy. Past returns are encouraging but can’t be relied on to repeat, especially for concentrated, tech-tilted portfolios.

Projection Info

The Monte Carlo analysis uses thousands of random “what if” paths based on historical behavior to estimate a range of possible futures. It shows a wide spread: in weaker scenarios (5th percentile), wealth roughly triples, while median and higher scenarios grow much more. The average simulated annual return above 25% is unusually high and heavily driven by recent strong markets and sector-specific booms. It’s important to remember that Monte Carlo assumes the future behaves somewhat like the past, which is a big assumption. For a concentrated growth portfolio, forward expectations should be viewed as optimistic scenarios, not guarantees. Treat these projections as rough direction, not precise forecasts, and be ready for outcomes well below the median.

Asset classes Info

  • Stocks
    50%
  • Cash
    0%

All investable assets here are stocks, with no bonds, cash, or alternatives in the mix. Asset classes are simply different “buckets” like stocks, bonds, and real estate, which usually react differently to economic events. A 100% stock allocation lines up with a growth profile but naturally pushes risk higher than a more blended portfolio. The strong equity focus is consistent with long-term growth goals and can work well for investors with long horizons and high risk tolerance. However, it offers little cushion during sharp market drops. Introducing even a small allocation to lower-volatility assets could smooth the ride without dramatically changing long-term growth potential.

Sectors Info

  • Technology
    26%
  • Financials
    6%
  • Consumer Discretionary
    5%
  • Telecommunications
    4%
  • Industrials
    3%
  • Energy
    2%
  • Health Care
    2%
  • Basic Materials
    1%
  • Consumer Staples
    1%
  • Real Estate
    0%
  • Utilities
    0%

Sector exposure is heavily skewed to technology and related industries, with tech alone around a quarter of the portfolio and additional indirect tech via growth and semiconductors. Tech-heavy allocations can shine when innovation and low interest rates support high valuations, which has been the case in recent years. But they can also fall sharply when rates rise or sentiment shifts away from growth themes. Compared with common broad benchmarks, this tilt is meaningfully higher, increasing both upside potential and downside risk. The sector mix is aligned with a growth mindset, but adding more exposure to defensive areas like healthcare or consumer staples could help balance out cyclicality and reduce dependence on one theme.

Regions Info

  • North America
    47%
  • Asia Developed
    2%
  • Europe Developed
    1%
  • Latin America
    0%
  • Asia Emerging
    0%
  • Africa/Middle East
    0%

Geographically, the portfolio is overwhelmingly tied to North America, mainly the US, with only tiny weights outside developed markets. Many global benchmarks include a notable slice of international stocks, which helps spread risk across different economies and policy regimes. Staying focused on the US has worked very well over the last decade, especially for growth and tech names, and this portfolio has clearly benefited from that trend. The flip side is concentration in a single economic region and currency. Gradually adding a bit more non-US exposure could help hedge against periods when US markets lag, while still keeping the core tilt toward domestic growth if that remains the priority.

Market capitalization Info

  • Mega-cap
    20%
  • Large-cap
    13%
  • Micro-cap
    7%
  • Small-cap
    7%
  • Mid-cap
    2%

The portfolio blends mega and large cap stocks with a meaningful small and micro cap slice, primarily via the small cap value ETF. Market capitalization is just a way of grouping companies by size, and different sizes behave differently over cycles. Large caps tend to be more stable and widely followed, while small caps can offer higher growth and factor premiums but with more volatility and longer dry spells. This mix supports both stability from big names and potential extra return from smaller companies, which is a smart feature. Keeping the small cap tilt at a level that still feels emotionally manageable during deep drawdowns is key for staying invested.

Redundant positions Info

  • iShares S&P 500 Growth ETF
    State Street® SPDR® Portfolio S&P 500® ETF
    High correlation

Two of the main holdings, the broad S&P 500 ETF and the S&P 500 growth ETF, are highly correlated, meaning they tend to move in the same direction at similar times. Correlation is a score from -1 to 1 that measures how similarly assets move; high positive numbers mean they behave almost alike. When assets are very correlated, owning both adds less diversification benefit than it might seem on paper. The overlap here does strengthen the growth tilt, but it doesn’t spread risk much further. Simplifying by reducing highly overlapping pieces, while keeping distinct tilts like small cap value or focused themes, could make the portfolio more efficient and easier to monitor.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.50%
  • iShares S&P 500 Growth ETF 0.40%
  • VanEck Semiconductor ETF 0.30%
  • State Street® SPDR® Portfolio S&P 500® ETF 1.10%
  • Weighted yield (per year) 0.90%

The portfolio’s total yield of around 0.9% is modest, reflecting its growth-centered approach. Yield is the annual income paid out as a percentage of the portfolio’s value. Growth and tech-heavy strategies typically reinvest more into expansion instead of paying high dividends, so most of the return is expected to come from price appreciation rather than income. This is well aligned with investors who care more about wealth building than current cash flow. For anyone who might want income later, it’s useful to keep in mind that shifting part of the allocation into higher-yielding areas over time could support withdrawals without having to sell as much during market downturns.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • iShares S&P 500 Growth ETF 0.18%
  • VanEck Semiconductor ETF 0.35%
  • Weighted costs total (per year) 0.13%

Overall portfolio costs are low, with a total expense ratio (TER) near 0.13%. TER is the annual percentage fee charged by funds, and keeping it low is like reducing friction on a long drive: more of the return stays in your pocket. This is a major strength and a good sign that cost discipline is already in place. The focused and factor funds are slightly pricier than the broad ETF, which is normal, but still within a reasonable range. Continuously favoring low-cost options for any future changes can meaningfully improve long-term outcomes, especially when compounded over decades, without needing to increase 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.

From a risk–return perspective, this portfolio sits in a high-return, high-volatility corner of the Efficient Frontier. The Efficient Frontier is a curve showing the best possible trade-offs between risk and return for a given set of assets. Efficiency here doesn’t mean the portfolio is perfectly diversified; it just asks whether the current mix is getting the most expected return for its level of volatility. Because of the heavy overlap between the core and growth funds, there’s a chance that a slightly simpler mix of the existing ETFs could hit similar return expectations with a bit less risk. Any optimization would focus on rebalancing between these current holdings, not adding new products.

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