This portfolio has only about 1.2 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.
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A tech-heavy portfolio with strong U.S. focus and limited diversification

Report created on Apr 6, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification
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Positions

This portfolio is heavily concentrated in two major ETFs: the iShares Core S&P 500 ETF and the Invesco NASDAQ 100 ETF, which together make up 95% of the portfolio. The remaining 5% is in the Invesco Galaxy Bitcoin ETF. While the portfolio is simple and easy to manage, its composition is heavily weighted towards U.S. equities, with a significant focus on technology. This setup aligns with a typical balanced profile but lacks diversification. It’s important to consider diversifying further to reduce potential risks associated with market volatility.

Growth Info

The portfolio has shown a solid historic performance with a CAGR of 9.47%, which is commendable for a balanced risk profile. Its maximum drawdown of -18.37% indicates some vulnerability during market downturns, but it remains within acceptable limits for balanced investors. The portfolio's tendency to achieve 90% of its returns over just four days suggests high volatility, typical for tech-heavy investments. Comparing this to a broader market index may reveal areas for potential improvement. Consider this performance as a baseline for evaluating future adjustments.

Projection Info

The forward projection, based on 1,000 Monte Carlo simulations, shows a wide range of potential outcomes. The 5th percentile projects a modest return, while the 50th percentile suggests substantial growth, and the 67th percentile indicates even higher potential. Monte Carlo simulations use historical data to estimate future performance, but they cannot predict exact outcomes. The high variability highlights the importance of diversification to stabilize returns. While the portfolio shows promise, it's crucial to prepare for various market conditions.

Asset classes Info

  • Stocks
    95%
  • Other
    5%

The portfolio is predominantly composed of equities, with 95% in stocks and 5% in other assets, notably Bitcoin. This heavy reliance on equities can lead to significant exposure to market fluctuations. Diversification across different asset classes, such as bonds or real estate, could help mitigate risks and stabilize returns. Compared to a typical balanced portfolio, this one lacks the diversification needed to cushion against market volatility. Assessing the potential benefits of including additional asset classes could enhance the portfolio's resilience.

Sectors Info

  • Technology
    37%
  • Telecommunications
    11%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Financials
    9%
  • Industrials
    6%
  • Consumer Staples
    6%
  • Energy
    2%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    1%

Sector allocation shows a strong bias towards technology, which constitutes 37% of the portfolio. Other sectors, like Communication Services and Consumer Cyclicals, also have notable representation. This tech-heavy focus can lead to higher volatility, especially during economic shifts or interest rate changes. While the sector composition aligns with current market trends, it's essential to consider the potential risks of such concentration. Diversifying across more sectors could provide a buffer against sector-specific downturns and enhance overall stability.

Regions Info

  • North America
    94%
  • Europe Developed
    1%

The portfolio is heavily concentrated in North America, with 94% exposure. This geographic focus limits diversification and increases vulnerability to regional economic shifts. Expanding exposure to other regions, such as Europe or Asia, could enhance diversification and reduce reliance on the U.S. market. While the current allocation has benefited from strong U.S. market performance, broader geographic diversification could provide additional growth opportunities and risk mitigation. Consider exploring international markets to balance regional exposure.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    33%
  • Mid-cap
    15%

The portfolio is primarily invested in mega and big-cap stocks, which together account for 79% of the allocation. This focus on larger companies can provide stability and lower volatility compared to small-cap stocks. However, it may limit growth potential during bull markets when smaller companies often outperform. Including a mix of small and medium-cap stocks could enhance growth opportunities and improve diversification. Balancing exposure across different market capitalizations can help achieve a more robust and resilient portfolio.

Redundant positions Info

  • Invesco NASDAQ 100 ETF
    iShares Core S&P 500 ETF
    High correlation

The portfolio's assets are highly correlated, particularly between the Invesco NASDAQ 100 ETF and the iShares Core S&P 500 ETF. High correlation means these assets tend to move in the same direction, which can limit diversification benefits. In times of market downturns, this could lead to increased risk. Reducing correlation by incorporating assets with different performance drivers can enhance diversification. Consider exploring alternative investments or sectors to achieve a more balanced risk profile and reduce the impact of market volatility.

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.

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The portfolio could benefit from optimization using the Efficient Frontier, which seeks the best risk-return balance. Currently, the high correlation between assets suggests limited diversification benefits. By adjusting allocations or incorporating less correlated assets, the portfolio could achieve a more efficient risk-return ratio. Optimization focuses on the existing assets and how reallocating between them can improve outcomes without increasing risk. Exploring this approach could enhance performance and align the portfolio with investor goals.

Dividends Info

  • iShares Core S&P 500 ETF 1.50%
  • Invesco NASDAQ 100 ETF 0.70%
  • Weighted yield (per year) 1.14%

The portfolio's dividend yield stands at 1.14%, primarily driven by the iShares Core S&P 500 ETF. While not the primary focus of this growth-oriented portfolio, dividends can provide a steady income stream and help mitigate volatility. For investors seeking income, increasing exposure to high-dividend stocks or funds could boost the yield. However, this might come at the cost of growth potential. Balancing growth and income objectives is crucial for achieving long-term investment goals and maintaining portfolio stability.

Ongoing product costs Info

  • Invesco Galaxy Bitcoin ETF Invesco Galaxy Bitcoin ETF 0.25%
  • iShares Core S&P 500 ETF 0.03%
  • Invesco NASDAQ 100 ETF 0.15%
  • Weighted costs total (per year) 0.08%

The portfolio's total expense ratio (TER) is 0.08%, which is impressively low. This cost efficiency supports better long-term performance by minimizing the drag on returns. Lower costs mean more of your investment's growth is retained, enhancing compounding over time. While the current cost structure is favorable, it's essential to monitor any changes in fees or expenses. Maintaining a low-cost portfolio aligns with best practices and contributes to achieving financial goals more efficiently.

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