A growth-focused portfolio with heavy tech exposure and global diversification

Report created on Sep 14, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is structured with a 60% allocation to ETFs, evenly split between the Invesco S&P 500® Momentum ETF and the Vanguard Total International Stock Index Fund ETF Shares. The remaining 40% is invested directly in technology giants, Apple Inc and Microsoft Corporation. This composition showcases a strategic blend of broad market exposure and targeted investments in high-performing tech stocks. The diversification score and the portfolio's broad classification indicate a well-thought-out approach to spreading risk across various sectors and geographies, though with a significant tilt towards technology.

Growth Info

Historically, the portfolio has shown a remarkable Compound Annual Growth Rate (CAGR) of 23.08%, with a maximum drawdown of -30%. The days contributing to 90% of returns being concentrated in just 42 days highlight the portfolio's volatility and the significant impact of short-term gains. This performance, while impressive, underscores the importance of understanding the inherent risks and the potential for wide fluctuations in value. The high CAGR is indicative of the portfolio's growth orientation but comes with increased risk exposure.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median portfolio value increase of 2,027.6% over the simulated period. This suggests a strong potential for significant growth, supported by the high percentage of simulations resulting in positive returns. However, it's crucial to remember that these projections are based on historical data and cannot guarantee future performance. They serve as a tool for understanding potential volatility and outcomes, emphasizing the importance of risk management in growth-focused portfolios.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's 99% allocation to stocks, with a minor 1% in cash, positions it firmly within the growth investment category. This heavy stock concentration enhances the potential for high returns but also increases exposure to market volatility. The absence of fixed-income securities or alternative investments limits the portfolio's ability to hedge against stock market downturns, suggesting a need for a more balanced asset class distribution to mitigate risk.

Sectors Info

  • Technology
    51%
  • Financials
    13%
  • Industrials
    8%
  • Consumer Discretionary
    8%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Health Care
    3%
  • Energy
    2%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    1%

With 51% of the portfolio invested in technology, followed by smaller allocations across financial services, industrials, and other sectors, the sectoral distribution reflects a strong conviction in tech's growth potential. While this concentration has likely contributed to the portfolio's high historical returns, it also increases susceptibility to sector-specific risks. Diversifying across a broader range of sectors could reduce volatility and improve resilience against market shifts.

Regions Info

  • North America
    72%
  • Europe Developed
    12%
  • Asia Emerging
    5%
  • Japan
    5%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation shows a heavy tilt towards North America (72%), with meaningful exposure to developed Europe and emerging markets in Asia. This distribution benefits from the stability and growth potential in developed markets while capturing some growth opportunities in emerging markets. However, the limited exposure to emerging markets and certain developed regions might restrict the portfolio's ability to capitalize on global economic shifts and diversification benefits.

Market capitalization Info

  • Mega-cap
    69%
  • Large-cap
    20%
  • Mid-cap
    9%
  • Small-cap
    1%

The focus on mega-cap (69%) and large-cap (20%) companies underscores the portfolio's preference for established, high-growth potential firms. This bias towards larger companies, while contributing to stability and strong performance, may limit opportunities for higher growth rates that smaller companies can offer. Incorporating a broader mix of market capitalizations could enhance return potential and diversification.

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.

Regarding risk versus return optimization, the portfolio's heavy allocation to growth stocks and technology suggests a strategy focused on high returns. However, the Efficient Frontier concept could help in identifying a mix of assets that could achieve a better risk-return ratio. Rebalancing the portfolio to include assets with lower correlation and different risk profiles might improve overall portfolio efficiency, aligning closer to the Efficient Frontier.

Dividends Info

  • Apple Inc 0.40%
  • Microsoft Corporation 0.70%
  • Invesco S&P 500® Momentum ETF 0.50%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.18%

The portfolio's dividend yield stands at 1.18%, with individual yields ranging from 0.40% to 2.70% across holdings. While not the primary focus for a growth-oriented portfolio, dividends contribute to total return and provide a modest income stream. Given the portfolio's growth focus, the current yield is reasonable, but there could be room to enhance income through higher-yielding investments without significantly compromising growth potential.

Ongoing product costs Info

  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.05%

The portfolio benefits from relatively low costs, with the Total Expense Ratio (TER) of the ETFs averaging 0.09%. Low costs are crucial for enhancing long-term returns, especially in growth portfolios where compounding plays a significant role. The emphasis on cost efficiency is commendable and aligns with best practices for maximizing investment returns over time.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey