A tech-focused growth portfolio with strong U.S. bias and moderate international exposure
Report created on Mar 1, 2025Risk profile
5/7
Diversification profile
3/5
Positions
-
SP SPDR® Portfolio S&P 500 ETF
SPLG - US78464A8541 50.00% -
QQ Invesco NASDAQ 100 ETF
QQQM - US46138G6492 25.00% -
SM VanEck Semiconductor ETF
SMH - US92189F6768 15.00% -
VX Vanguard Total International Stock Index Fund ETF Shares
VXUS - US9219097683 10.00%
This portfolio is heavily weighted towards U.S. equities, with a significant allocation to technology stocks. The SPDR® Portfolio S&P 500 ETF makes up half of the portfolio, providing broad market exposure. The Invesco NASDAQ 100 ETF and VanEck Semiconductor ETF further emphasize tech and innovation. The Vanguard Total International Stock Index Fund ETF adds a touch of international diversification. Compared to a typical benchmark, this portfolio leans more towards growth sectors, which may boost returns but can also increase volatility. Consider whether this tech-heavy focus aligns with your long-term goals and risk tolerance.
Growth
The portfolio's historical performance shows a robust CAGR of 16.22%, indicating strong growth over time. However, it also experienced a maximum drawdown of -30.86%, suggesting significant volatility during market downturns. This is typical for growth-oriented portfolios that are heavily invested in tech and innovation sectors. The impressive growth is a positive indicator, but it's essential to be prepared for potential fluctuations. Comparing this performance to benchmarks, the portfolio has outperformed in growth but also exhibited higher risk. Balancing these factors is crucial for long-term success.
Projection
Monte Carlo simulations provide a range of potential future outcomes based on historical data. With 1,000 simulations, the portfolio shows a median projected return of 625.6%, with 976 simulations yielding positive returns. The 5th percentile projection is 48.8%, highlighting potential downside risk, while the 67th percentile is 1,031.4%, indicating substantial upside potential. These projections offer a glimpse into possible future performance but are not guarantees. They serve as a tool to understand risk and reward scenarios, helping you make informed decisions about whether the current allocation aligns with your risk tolerance and investment goals.
Asset classes
- Stocks 100%
The portfolio is entirely composed of stocks, which can lead to higher returns but also increased risk compared to a more diversified asset allocation. While this focus on equities is suitable for growth, it may expose the portfolio to market volatility. Diversifying into other asset classes like bonds or real estate could help mitigate this risk and provide more stability. However, if your primary goal is capital appreciation and you can tolerate short-term fluctuations, maintaining a stock-heavy allocation may be appropriate. Consider whether this all-equity approach aligns with your risk tolerance and investment horizon.
Sectors
- Technology 46%
- Consumer Discretionary 10%
- Telecommunications 9%
- Financials 9%
- Health Care 7%
- Industrials 6%
- Consumer Staples 5%
- Energy 2%
- Utilities 2%
- Basic Materials 2%
- Real Estate 1%
The portfolio's sector allocation is heavily skewed towards technology, comprising 46% of the total. This concentration can drive substantial growth, especially in a tech-driven market environment. However, it also increases vulnerability to tech sector downturns. Other sectors, like consumer cyclicals and communication services, provide some balance but remain underrepresented compared to typical benchmarks. Diversifying further across sectors could reduce risk and enhance stability. Assess whether this tech-heavy allocation aligns with your risk appetite and long-term objectives, and consider the potential impact of sector-specific trends on your portfolio's performance.
Regions
- North America 87%
- Europe Developed 5%
- Asia Developed 3%
- Asia Emerging 2%
- Japan 2%
The portfolio is predominantly focused on North American equities, accounting for 87% of its geographic allocation. This concentration provides familiarity and potential stability but limits exposure to international growth opportunities. The Vanguard Total International Stock Index Fund ETF offers some diversification, but the portfolio remains underexposed to emerging markets and regions like Europe or Asia. Expanding geographic diversification could help mitigate risks associated with regional downturns and capitalize on global growth trends. Evaluate whether this U.S.-centric focus aligns with your investment objectives and risk tolerance, and consider increasing international exposure if desired.
Market capitalization
- Mega-cap 48%
- Large-cap 37%
- Mid-cap 14%
- Small-cap 1%
The portfolio's market capitalization allocation is primarily in mega and big-cap stocks, making up 85% of the total. This focus on larger companies can provide stability and consistent growth, as these firms often have established business models and strong market positions. However, it may limit exposure to the potentially higher returns of medium and small-cap stocks. Diversifying into smaller companies could enhance growth potential but also increase risk. Consider whether this large-cap bias aligns with your investment goals and risk tolerance, and evaluate the potential benefits of incorporating more mid and small-cap stocks.
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 current allocation can be optimized using the Efficient Frontier, which seeks the best possible risk-return ratio based on existing assets. By adjusting the allocation between the ETFs, you can potentially enhance returns or reduce risk. This optimization focuses on maximizing efficiency rather than diversification or other goals. While the portfolio is already growth-oriented, exploring different allocations could help achieve a more desirable risk-return balance. Consider whether this optimization aligns with your investment objectives and risk tolerance, and evaluate the potential benefits of rebalancing your portfolio.
Dividends
- Invesco NASDAQ 100 ETF 0.60%
- VanEck Semiconductor ETF 0.50%
- SPDR® Portfolio S&P 500 ETF 1.30%
- Vanguard Total International Stock Index Fund ETF Shares 3.20%
- Weighted yield (per year) 1.20%
The portfolio's dividend yield stands at 1.20%, with the Vanguard Total International Stock Index Fund ETF contributing the highest yield at 3.20%. While dividends provide a steady income stream, this portfolio's focus on growth suggests that capital appreciation is the primary goal. The relatively low dividend yield reflects its emphasis on tech and growth sectors, where companies often reinvest profits rather than distribute them as dividends. If income generation is a priority, consider incorporating higher-yielding assets. However, if growth is the main objective, the current dividend strategy may be appropriate.
Ongoing product costs
- Invesco NASDAQ 100 ETF 0.15%
- VanEck Semiconductor ETF 0.35%
- SPDR® Portfolio S&P 500 ETF 0.02%
- Vanguard Total International Stock Index Fund ETF Shares 0.08%
- Weighted costs total (per year) 0.11%
The portfolio's total expense ratio (TER) is 0.11%, which is impressively low and supports better long-term performance by minimizing costs. The SPDR® Portfolio S&P 500 ETF contributes significantly to this low TER with its 0.02% rate. Keeping costs low is crucial for maximizing returns, as fees can eat into profits over time. This cost efficiency aligns well with best practices in portfolio management, allowing more of your investment to work for you. Ensure that this low-cost approach continues to align with your investment strategy, and periodically review expenses to maintain cost-effectiveness.
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