A growth-focused portfolio with high concentration in tech and minimal diversification

Report created on Jul 21, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is highly concentrated, with a significant allocation to the Vanguard S&P 500 ETF and substantial positions in Alphabet Inc Class C and Datadog Inc. Such a composition suggests a strong focus on growth, especially within the technology sector. The high percentage in a single ETF and two stocks, however, indicates low diversification, which can increase volatility and risk.

Growth Info

Historically, the portfolio has shown impressive growth, with a Compound Annual Growth Rate (CAGR) of 21.99%. This high return rate is indicative of the portfolio's aggressive growth strategy. However, the maximum drawdown of -40.31% highlights the potential risk and volatility associated with this concentrated approach. It's crucial to understand that high returns often come with increased risk.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential portfolio values. While the majority of simulations show positive returns, the significant spread between the 5th and 67th percentiles underscores the high level of uncertainty and risk. Such 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 exposure to other asset classes like bonds or real estate. This lack of diversification across asset classes can lead to higher volatility. Diversifying across different asset classes can reduce risk by spreading exposure across investments that react differently to market conditions.

Sectors Info

  • Technology
    35%
  • Telecommunications
    31%
  • Financials
    8%
  • Consumer Discretionary
    6%
  • Health Care
    6%
  • Industrials
    5%
  • Consumer Staples
    4%
  • Energy
    2%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

The sectoral allocation is heavily weighted towards technology and communication services, making the portfolio susceptible to sector-specific risks. While these sectors can offer high growth potential, they are also prone to significant fluctuations. Balancing sector exposure can mitigate risk while still allowing for growth.

Regions Info

  • North America
    100%

With 100% of assets allocated to North America, the portfolio lacks geographic diversification. This concentration in a single region increases vulnerability to local economic and market events. Expanding into other regions can provide a buffer against regional downturns and tap into growth opportunities elsewhere.

Market capitalization Info

  • Mega-cap
    53%
  • Large-cap
    36%
  • Mid-cap
    11%
  • Small-cap
    1%

The focus on mega and big-cap stocks aligns with the portfolio's growth profile but limits exposure to the potentially higher growth rates of medium and small-cap stocks. While larger companies tend to be more stable, diversifying across market capitalizations can enhance returns and reduce 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.

Click on the colored dots to explore allocations.

Considering the Efficient Frontier, this portfolio may not be optimized for the best possible risk-return ratio given its current asset allocation. Adjusting the distribution between different assets, sectors, and geographies could potentially offer a more favorable balance of risk and return, enhancing the portfolio's efficiency.

Dividends Info

  • Alphabet Inc Class C 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.82%

The portfolio's dividend yield is relatively low, which is typical for growth-focused investments prioritizing capital appreciation over income. While dividends can provide a steady income stream and contribute to total return, a lower yield is often acceptable for investors prioritizing long-term growth.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.02%

The portfolio benefits from exceptionally low costs, with the Vanguard S&P 500 ETF's expense ratio contributing to a total portfolio expense ratio (TER) of just 0.02%. Low costs are crucial for long-term growth, as they directly improve net returns by reducing the drag on performance.

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