Tech-heavy growth portfolio with low diversity and a focus on North American stocks

Report created on Aug 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 70% allocated to a technology-focused ETF and 30% to a broad market ETF. Such a composition suggests a strong emphasis on the technology sector, underpinned by a broader exposure to the total stock market. This concentration in tech, while potentially lucrative, introduces significant sector-specific risk. The portfolio's diversification is limited, as evidenced by its low diversification score, indicating a reliance on the performance of a single sector and the broader market movements in North America.

Growth Info

Historically, this portfolio has shown a robust Compound Annual Growth Rate (CAGR) of 21.10%, though it has experienced a maximum drawdown of -33.26%. This performance is indicative of high volatility, typical of tech-heavy portfolios. The fact that 90% of returns came from just 42 days highlights the portfolio's reliance on short, sharp market movements, which can be both an opportunity and a risk, depending on market timing and volatility.

Projection Info

Monte Carlo simulations, using historical data to forecast future outcomes, suggest a wide range of potential portfolio values. With a median projection significantly higher than the initial investment, the optimistic scenario is appealing. However, the range from the 5th to the 67th percentile underscores the high risk and potential volatility. While most simulations predict positive returns, the variability emphasizes the need for caution and a clear understanding of risk tolerance.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is almost entirely in stocks (99%), with a negligible cash holding (1%). This allocation supports the growth profile but limits flexibility and increases exposure to market downturns. Stocks, especially in the technology sector, can offer substantial growth but also come with higher volatility. A more diversified asset class mix could provide a buffer during market corrections.

Sectors Info

  • Technology
    79%
  • Financials
    4%
  • Consumer Discretionary
    3%
  • Telecommunications
    3%
  • Industrials
    3%
  • Health Care
    3%
  • Consumer Staples
    2%
  • Energy
    1%
  • Real Estate
    1%
  • Utilities
    1%
  • Basic Materials
    1%

With 79% in technology, the portfolio's sector allocation heavily leans towards high-growth potential but also high volatility. The remaining sectors represent a small fraction, offering minimal balance against tech sector fluctuations. This concentration enhances exposure to sector-specific risks, such as regulatory changes or shifts in consumer preferences, which could disproportionately impact overall performance.

Regions Info

  • North America
    99%

The geographic allocation is almost exclusively North American (99%), offering little international diversification. This focus on a single region can magnify the impact of local economic and political events on the portfolio's performance. Expanding geographic exposure could mitigate some of this risk by tapping into growth and stability in other markets.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    26%
  • Mid-cap
    14%
  • Small-cap
    8%
  • Micro-cap
    3%

The portfolio's market capitalization exposure is diversified across mega (48%), big (26%), medium (14%), small (8%), and micro (3%) cap stocks. This spread across different sizes can offer a mix of stability and growth potential. However, the heavy weighting towards larger companies is consistent with the portfolio's growth and technology focus, as these firms often dominate the tech sector.

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 fully optimized for the best possible risk-return ratio, given its low diversification and heavy tech concentration. Optimization could involve rebalancing to include assets with lower correlation to the technology sector or increasing exposure to different asset classes and geographies. This would aim to maintain high growth potential while reducing volatility and overall risk.

Dividends Info

  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 0.71%

The portfolio's overall dividend yield is 0.71%, reflecting a balance between the lower yield of the technology ETF and the higher yield of the total stock market ETF. While dividends contribute to total returns, the focus here is clearly on capital appreciation rather than income generation, aligning with the growth profile of the portfolio.

Ongoing product costs Info

  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.08%

The portfolio's total expense ratio (TER) of 0.08% is impressively low, maximizing the potential for net returns. Low costs are crucial for long-term growth, as they allow a greater portion of investment returns to compound over time. This cost efficiency is a significant strength of the portfolio, supporting its growth objectives.

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