Growth-focused portfolio with high concentration in technology and large-cap stocks

Report created on Aug 20, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio primarily invests in large-cap stocks through ETFs, with a significant emphasis on the technology sector. This is evident from the 40% allocation to the Vanguard S&P 500 ETF, 25% to the Schwab U.S. Large-Cap Growth ETF, 20% to the Invesco QQQ Trust, and 15% to the Invesco S&P 500® Momentum ETF. Such a composition indicates a growth orientation but comes with low diversification, as reflected in the diversification score of 2 out of 5.

Growth Info

Historically, the portfolio has shown a compelling Compound Annual Growth Rate (CAGR) of 20.76%, with a maximum drawdown of -31.72%. These figures underscore the portfolio's high-growth yet volatile nature. The fact that 90% of returns came from just 37 days highlights the potential for significant short-term fluctuations.

Projection Info

Monte Carlo simulations, projecting future performance based on historical data, indicate a wide range of outcomes, with the median scenario suggesting a 1,438.0% return. While promising, it's crucial to remember that such simulations assume historical trends will continue, which may not always be the case, especially in rapidly changing markets.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, with no allocation to other asset classes like bonds or real estate. This singular focus on equities enhances growth potential but also increases risk, particularly in market downturns, where diversification across asset classes could provide a buffer.

Sectors Info

  • Technology
    40%
  • Telecommunications
    13%
  • Consumer Discretionary
    12%
  • Financials
    10%
  • Health Care
    7%
  • Industrials
    6%
  • Consumer Staples
    5%
  • Utilities
    2%
  • Energy
    2%
  • Basic Materials
    1%
  • Real Estate
    1%

With 40% allocated to technology and significant investments in communication services and consumer cyclicals, the portfolio is heavily skewed towards sectors that can exhibit high volatility. This concentration increases exposure to sector-specific risks, which could be mitigated by broadening the sectoral allocation.

Regions Info

  • North America
    99%

The geographic allocation is nearly exclusively North American (99%), lacking exposure to developed European markets or emerging markets in Asia and Latin America. This geographic concentration may limit the portfolio's potential to benefit from global economic growth and diversification.

Market capitalization Info

  • Mega-cap
    54%
  • Large-cap
    31%
  • Mid-cap
    14%
  • Small-cap
    1%

The emphasis on mega (54%) and big (31%) cap stocks aligns with the portfolio's growth strategy but limits exposure to medium, small, and micro-cap stocks, which could offer higher growth potential albeit with increased risk.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Schwab U.S. Large-Cap Growth ETF
    Invesco QQQ Trust
    High correlation

The portfolio's main ETFs are highly correlated, particularly those tracking the S&P 500 and technology-heavy indices. This high correlation suggests that the portfolio may not be as diversified as it appears, as these assets tend to move in tandem, especially during market downturns.

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 could be optimized by addressing the high correlation among its assets. Reducing overlap and introducing assets with lower correlation could enhance diversification benefits without necessarily compromising growth potential. This optimization aligns with the Efficient Frontier principle, aiming for the best possible risk-return balance.

Dividends Info

  • Invesco QQQ Trust 0.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.77%

The overall dividend yield of 0.77% is relatively low, reflecting the growth-focused nature of the portfolio. While dividends contribute to total returns, the primary focus here is on capital appreciation, which is typical for a growth-oriented investment strategy.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.08%

The portfolio's total expense ratio (TER) of 0.08% is impressively low, which is beneficial for long-term performance. Keeping costs minimal is crucial in maximizing returns, especially in a growth-focused portfolio where compound growth plays a significant role.

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