Aggressive growth portfolio with high tech exposure and significant single-stock risk

Report created on Aug 20, 2025

Risk profile Info

6/7
Aggressive
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards U.S. large-cap growth stocks, with 70% allocated to a Schwab U.S. Large-Cap Growth ETF. It also includes a significant stake in Jiayin Group Inc, a single common stock, making up 15% of the portfolio, and an equal allocation to a Schwab U.S. Small-Cap ETF. This composition reflects an aggressive growth strategy, focusing predominantly on the stock market with a notable tilt towards technology and communication services sectors. The absence of bonds or other asset classes suggests a high risk tolerance, banking heavily on stock market performance.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 26.09%, with a maximum drawdown of -33.37%. This indicates a high level of volatility, typical of aggressive growth portfolios. The days contributing to 90% of returns being limited to just 17 days underscores the portfolio's reliance on short, significant market movements. While past performance is impressive, it's crucial to understand that such high returns come with substantial risk, as evidenced by the steep drawdown.

Projection Info

Monte Carlo simulations, which use historical data to project future portfolio performance, suggest a wide range of outcomes. The 5th percentile outcome at -98.3% is alarming, indicating a near-total loss in the worst-case scenarios. However, the median (50th percentile) projection shows a 99.3% return, and the 67th percentile offers an optimistic 568.1% gain. These projections highlight the portfolio's high-risk, high-reward nature but remember, Monte Carlo simulations are based on past data and cannot predict future market conditions with certainty.

Asset classes Info

  • Stocks
    100%

The portfolio is exclusively invested in stocks, with no diversification into other asset classes like bonds or real estate. This approach maximizes potential returns but also increases volatility and risk, especially in market downturns. Diversifying across different asset classes can provide a buffer against stock market fluctuations, potentially reducing the portfolio's overall volatility.

Sectors Info

  • Technology
    38%
  • Telecommunications
    25%
  • Consumer Discretionary
    11%
  • Financials
    8%
  • Health Care
    7%
  • Industrials
    5%
  • Consumer Staples
    2%
  • Basic Materials
    2%
  • Real Estate
    1%
  • Energy
    1%
  • Utilities
    1%

With 38% allocated to technology and 25% to communication services, the portfolio is heavily tilted towards sectors that have experienced significant growth but are also prone to high volatility. While this sector concentration has likely contributed to the portfolio's high historical returns, it also increases susceptibility to sector-specific downturns. Broadening the sector allocation could help mitigate some of this risk.

Regions Info

  • North America
    85%
  • Asia Emerging
    15%

The geographic allocation is predominantly in North America (85%) with a 15% exposure to Asian emerging markets via Jiayin Group Inc. This limited geographic diversification increases vulnerability to regional economic downturns and misses out on potential growth opportunities in other emerging and developed markets. Expanding geographic exposure could reduce risk and tap into global growth trends.

Market capitalization Info

  • Mega-cap
    46%
  • Small-cap
    25%
  • Large-cap
    15%
  • Mid-cap
    9%
  • Micro-cap
    5%

The portfolio's market capitalization exposure is diverse, with a significant portion in mega and small-cap stocks. This mix can offer a balance between the stability of large companies and the growth potential of smaller firms. However, the heavy weighting towards large-cap, particularly in growth sectors, may skew the portfolio towards higher volatility. A more balanced market cap distribution could provide a smoother return profile.

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.

Given the portfolio's aggressive stance, optimizing for the Efficient Frontier could involve rebalancing towards a more diversified mix of asset classes and sectors. This would aim to achieve the best possible risk-return ratio, potentially smoothing out volatility without significantly compromising growth potential. However, any optimization should consider the investor's risk tolerance and investment goals.

Dividends Info

  • Jiayin Group Inc 10.10%
  • Schwab U.S. Small-Cap ETF 1.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Weighted yield (per year) 2.02%

The overall dividend yield of the portfolio is 2.02%, with Jiayin Group Inc contributing a significant 10.10% yield. While dividends can provide a steady income stream, the focus on growth stocks typically results in lower dividend yields. Given the aggressive growth strategy, this lower emphasis on dividends is expected, but investors seeking income might consider a higher allocation to dividend-paying assets.

Ongoing product costs Info

  • Schwab U.S. Small-Cap ETF 0.04%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Weighted costs total (per year) 0.03%

The portfolio benefits from exceptionally low costs, with Total Expense Ratios (TER) for the ETFs at just 0.04%. Low costs are crucial for long-term growth, as they directly enhance net returns. This is a strength of the portfolio, indicating efficient cost management.

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