An aggressive portfolio with high tech exposure and strong international diversification

Report created on Jan 31, 2025

Risk profile Info

6/7
Aggressive
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is comprised of 60% ETFs and 40% individual stocks, with a strong emphasis on technology and small-cap value. The ProShares Ultra QQQ, a leveraged ETF, takes up 30%, indicating a high-risk, high-return strategy. The inclusion of Berkshire Hathaway and Sirius XM adds a unique touch. Compared to a typical benchmark, this portfolio is more aggressive due to its leveraged and concentrated positions. Understanding the balance between risk and reward is vital. Consider the potential for significant volatility and ensure it aligns with your risk tolerance.

Growth Info

Historically, this portfolio has performed impressively with a CAGR of 20.22%. However, it also experienced a maximum drawdown of -43.06%, highlighting its volatility. Compared to benchmarks like the S&P 500, this portfolio has outperformed in terms of growth but at the cost of higher risk. Historical performance is crucial for setting expectations, but remember that past success doesn't guarantee future results. Consider whether the growth justifies the drawdowns and if you're comfortable with the potential for significant losses during downturns.

Projection Info

Forward projections using Monte Carlo simulations predict a wide range of outcomes. The median expectation is a substantial 266.3% return, while the 5th percentile suggests a potential -60.1% loss. Monte Carlo simulations use historical data to estimate future possibilities, but they can't predict exact outcomes. The wide range of potential results underscores the portfolio's risk. Consider whether the potential high returns justify the lower probability of significant losses, and ensure your financial goals align with this risk profile.

Asset classes Info

  • Stocks
    96%
  • Cash
    4%

The portfolio is heavily weighted in stocks, accounting for 96% of the allocation, with a small 4% in cash. This stock-heavy approach aligns with an aggressive investment strategy, aiming for high returns. Compared to a typical balanced portfolio, this one is more susceptible to market fluctuations. Diversification across asset classes can mitigate risk, so consider if this concentration aligns with your risk tolerance. You might explore adding bonds or alternative assets to balance potential volatility.

Sectors Info

  • Financials
    22%
  • Technology
    21%
  • Telecommunications
    16%
  • Consumer Discretionary
    11%
  • Industrials
    10%
  • Energy
    5%
  • Consumer Staples
    4%
  • Health Care
    4%
  • Basic Materials
    4%
  • Utilities
    1%
  • Real Estate
    1%

The sectoral allocation is diverse, with notable concentrations in financial services and technology, at 22% and 21% respectively. This balance is beneficial for capturing growth in these dynamic sectors. However, technology-heavy portfolios can be more volatile, especially during interest rate changes. Compared to benchmarks, this portfolio aligns well with sector diversification norms. Consider whether this sector exposure aligns with your expectations and if any adjustments are needed to manage sector-specific risks.

Regions Info

  • North America
    76%
  • Europe Developed
    10%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

With 76% exposure to North America, this portfolio is heavily skewed towards the U.S., though it maintains a degree of international diversification. The Vanguard Total International Stock Index Fund provides exposure to developed and emerging markets, enhancing global reach. Compared to global benchmarks, this allocation is slightly U.S.-centric. Geographic diversification helps mitigate country-specific risks. Consider if the current balance aligns with your view on global markets or if further international exposure is desirable.

Market capitalization Info

  • Mega-cap
    33%
  • Mid-cap
    17%
  • Large-cap
    16%
  • Small-cap
    14%
  • Micro-cap
    11%

The portfolio is diversified across market capitalizations, with a notable 33% in mega-cap stocks and 14% in small-cap stocks. This mix provides a balance between stability and growth potential. Mega-cap stocks often offer stability, while small-cap stocks can deliver higher growth. Compared to a standard market-cap weighted index, this portfolio leans more towards small and micro-cap stocks, increasing potential volatility. Consider if this balance reflects your risk appetite and investment goals.

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.

The portfolio's risk-return profile can be optimized using the Efficient Frontier, which identifies the best possible risk-return ratio for a given set of assets. This doesn't mean adding new assets, but rather adjusting current allocations. An efficient portfolio maximizes returns for a given level of risk. Consider using optimization tools to rebalance and ensure the portfolio is operating efficiently. Regular reviews can help maintain optimal performance, aligning with your risk tolerance and investment goals.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • ProShares Ultra QQQ 0.20%
  • Sirius XM Holding Inc 2.60%
  • Vanguard Total International Stock Index Fund ETF Shares 3.20%
  • Weighted yield (per year) 1.52%

The portfolio's total dividend yield is 1.52%, with contributions from various holdings like the Vanguard Total International Stock Index Fund at 3.20%. Dividends provide a steady income stream, which can be particularly beneficial during volatile market periods. Compared to high-dividend portfolios, this yield is moderate, aligning with the growth focus. Consider if the current yield meets your income needs or if adjustments are necessary to increase income potential through higher-yielding investments.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • ProShares Ultra QQQ 0.95%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.37%

The portfolio's total expense ratio (TER) is 0.37%, with the ProShares Ultra QQQ being the most expensive at 0.95%. This cost is relatively low compared to actively managed funds, supporting better long-term performance. Lower costs mean more of your returns stay in your pocket. Consider periodically reviewing the expense ratios to ensure they remain competitive. Reducing costs can enhance overall returns, so evaluate if there are opportunities to switch to lower-cost alternatives without sacrificing performance.

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