Aggressive growth portfolio with high concentration in tech and significant Tesla exposure

Report created on Jul 30, 2025

Risk profile Info

6/7
Aggressive
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio exhibits a high concentration in technology stocks and a significant allocation to Tesla, Inc., representing over 31% of the total. With 50.99% in the Vanguard Total Stock Market Index Fund ETF Shares and a smaller but notable position in Broadcom Inc, the portfolio leans heavily towards equities, specifically within the tech sector. The inclusion of the Vanguard Total International Stock Index Fund ETF Shares adds a touch of international diversification, though it's minimal at just 6.30%. The asset allocation is entirely in stocks, with no presence of bonds, cash, or alternative investments, indicating a strategy focused on capital growth over income or stability.

Growth Info

The portfolio's historical performance, with a Compound Annual Growth Rate (CAGR) of 27.49%, is impressive, suggesting strong past returns. However, the maximum drawdown of -60.33% signals significant volatility and risk, particularly for positions with such high concentration in individual stocks like Tesla. It's important to understand that while high returns can be enticing, they come with increased risk, as evidenced by the substantial drawdown. Investors should weigh the potential for high returns against the possibility of significant losses, especially in market downturns.

Projection Info

The Monte Carlo simulation, with 1,000 iterations, forecasts a wide range of potential outcomes, from a 5th percentile of 338.3% to a 67th percentile of 10,596.4%. This broad spectrum underscores the portfolio's aggressive growth strategy but also highlights the substantial risk and uncertainty inherent in such concentrated positions. While the simulation suggests the possibility of exceptional gains, it's crucial to remember that these projections are based on historical data, which is not a reliable indicator of future performance.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is exclusively in stocks, which aligns with an aggressive growth strategy but limits diversification across asset classes. Diversification across different asset classes can help mitigate risk by spreading exposure, as different asset classes often react differently to market conditions. Considering adding bonds, real estate, or alternative investments could provide a buffer against stock market volatility and reduce overall portfolio risk.

Sectors Info

  • Consumer Discretionary
    37%
  • Technology
    28%
  • Financials
    9%
  • Industrials
    6%
  • Health Care
    6%
  • Telecommunications
    5%
  • Consumer Staples
    3%
  • Energy
    2%
  • Real Estate
    2%
  • Utilities
    1%
  • Basic Materials
    1%

Sector allocation is heavily weighted towards Consumer Cyclicals and Technology, making up 65% of the portfolio. This concentration enhances exposure to sector-specific risks, such as regulatory changes or shifts in consumer behavior. Diversifying across a broader range of sectors could help mitigate these risks and stabilize returns over the long term, especially in sectors less correlated with the current holdings.

Regions Info

  • North America
    94%
  • Europe Developed
    3%
  • Asia Emerging
    1%
  • Japan
    1%
  • Asia Developed
    1%

With 94% of assets allocated to North America, the portfolio's geographic diversification is limited, increasing exposure to region-specific risks, such as economic downturns or political instability in the US. Expanding into more international and emerging markets could provide growth opportunities and reduce the impact of regional downturns on the portfolio's overall performance.

Market capitalization Info

  • Mega-cap
    66%
  • Large-cap
    18%
  • Mid-cap
    11%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio's focus on Mega and Big cap stocks, accounting for 84% of the allocation, suggests a preference for established, large-scale companies. While these companies often offer more stability than their smaller counterparts, diversifying into Medium, Small, and Micro cap stocks could introduce higher growth potential and further diversification benefits.

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.

Given the portfolio's aggressive stance and high concentration in specific stocks and sectors, there's room for optimization towards the Efficient Frontier. This would involve adjusting the allocation to achieve the best possible risk-return ratio. While the current setup might offer high growth potential, diversifying more broadly across sectors, geographies, and asset classes could improve the portfolio's risk-adjusted returns without necessarily sacrificing growth potential.

Dividends Info

  • Broadcom Inc 0.80%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 0.87%

The portfolio's dividend yield is relatively low, reflective of its growth-oriented strategy. For investors seeking income, increasing exposure to assets with higher dividend yields could provide a steady income stream. However, for those prioritizing capital appreciation, the current allocation supports this objective but at the cost of higher volatility and risk.

Ongoing product costs Info

  • 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) 0.02%

The portfolio benefits from low costs, with Total Expense Ratios (TER) for the Vanguard funds well below industry averages. This efficient cost structure supports higher net returns over the long term. Maintaining a focus on low-cost investments can significantly impact overall performance, especially in a high-growth strategy where every percentage point counts.

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