An aggressive growth portfolio with a dominant position in Meta Platforms and tech-focused ETFs

Report created on Jul 4, 2025

Risk profile Info

6/7
Aggressive
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is heavily concentrated in Meta Platforms Inc., representing over 80% of the total allocation. This is complemented by a selection of ETFs, predominantly in the technology sector, with minor positions in broad market and international funds. The heavy weighting towards a single stock, especially in a volatile sector like technology, significantly increases the portfolio's risk profile. Such a concentration is uncommon in diversified portfolios, where risk is spread across a wider range of assets and sectors.

Growth Info

Historically, the portfolio has shown a remarkable Compound Annual Growth Rate (CAGR) of 27.63%. However, it's crucial to note the maximum drawdown of -66.89%, indicating a high level of volatility and potential for significant losses. The performance is primarily driven by the tech sector's bull run, with Meta Platforms playing a significant role. While past performance is impressive, it's essential to understand that such high returns come with increased risk, and past performance is not indicative of future results.

Projection Info

Using Monte Carlo simulations, we observe a wide range of potential outcomes, from a 5th percentile of 38.9% to a 67th percentile of 969.0%. This underscores the portfolio's high risk and high reward nature, with a significant spread in potential future values. However, Monte Carlo simulations are based on historical data, and future market conditions could diverge, especially for a portfolio with such a high concentration in one stock and sector.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, with no allocation to bonds, cash, or alternative investments. This allocation supports high growth potential but also exposes the investor to higher market volatility. Diversifying across different asset classes could provide a buffer during market downturns, potentially smoothing out returns over time.

Sectors Info

  • Telecommunications
    82%
  • Technology
    10%
  • Financials
    2%
  • Consumer Discretionary
    2%
  • Health Care
    1%
  • Industrials
    1%
  • Consumer Staples
    1%

With over 82% invested in Communication Services, primarily through Meta Platforms, and a significant portion in Technology, the portfolio's sector exposure is highly concentrated. This concentration in tech and tech-related sectors can lead to high volatility, particularly in response to market changes affecting these industries. Diversifying across more sectors could mitigate sector-specific risks.

Regions Info

  • North America
    99%

The portfolio's geographic exposure is almost entirely in North America, with negligible allocations to emerging and developed markets outside the U.S. This geographic concentration increases exposure to country-specific economic and political risks. Expanding into international markets could provide growth opportunities and reduce the portfolio's vulnerability to U.S.-specific downturns.

Market capitalization Info

  • Mega-cap
    90%
  • Large-cap
    6%
  • Mid-cap
    3%
  • Small-cap
    1%

The focus on mega-cap stocks, especially Meta Platforms, aligns with the portfolio's aggressive growth strategy but limits exposure to the potential high growth of smaller companies. Including more mid and small-cap stocks could enhance diversification and potentially improve risk-adjusted returns over the long term.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    Fidelity® MSCI Information Technology Index ETF
    Vanguard Growth Index Fund ETF Shares
    Invesco NASDAQ 100 ETF
    Vanguard Information Technology Index Fund ETF Shares
    High correlation

The high correlation among the ETFs, especially those tracking the S&P 500, total stock market, and technology sector, indicates overlapping exposures that diminish the benefits of diversification. Reducing overlap by choosing ETFs with distinct holdings or focusing on different sectors or themes could enhance portfolio 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.

Before considering optimization along the Efficient Frontier, the priority should be addressing the significant overlap in highly correlated assets and the extreme concentration in Meta Platforms. Diversifying across different sectors, asset classes, and geographic regions could better position the portfolio for optimized risk-adjusted returns.

Dividends Info

  • Fidelity® MSCI Information Technology Index ETF 0.40%
  • Meta Platforms Inc. 0.30%
  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard FTSE All-World ex-US Index Fund ETF Shares 2.70%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Growth Index Fund ETF Shares 0.50%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 0.41%

The portfolio's overall dividend yield is modest at 0.41%, reflecting the growth-oriented investment strategy. For investors seeking income, increasing exposure to higher-dividend-yielding assets might be beneficial. However, for those prioritizing capital appreciation, the current yield is consistent with the portfolio's aggressive growth focus.

Ongoing product costs Info

  • Fidelity® MSCI Information Technology Index ETF 0.08%
  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard FTSE All-World ex-US Index Fund ETF Shares 0.07%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Vanguard FTSE Emerging Markets Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.01%

The portfolio's overall expense ratio is exceptionally low, indicating cost-efficient management of the investments. This low cost structure is beneficial for long-term growth, as lower costs translate directly into higher net returns for the investor.

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