Growth-focused portfolio with a strong tilt towards technology and US markets

Report created on Jul 16, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio predominantly invests in equities, with a significant emphasis on technology through direct ETF allocations and underlying sector weightings. The Vanguard S&P 500 ETF and Invesco NASDAQ 100 ETF together constitute 75% of the portfolio, showcasing a strong bias towards large-cap US equities, particularly in the tech sector. The inclusion of the Vanguard Total International Stock Index Fund ETF and the VanEck Semiconductor ETF adds international exposure and further tech specialization, respectively. This composition aligns with a growth-oriented strategy but leans heavily on market performance in the technology sector and large-cap US stocks.

Growth Info

Historically, this portfolio has delivered a Compound Annual Growth Rate (CAGR) of 16.36%, with a maximum drawdown of -30.44%. The days contributing to 90% of returns being concentrated in just 20 days highlights the volatility and the significant impact of short-term gains. This performance, while impressive, underscores the portfolio's reliance on market highs, particularly within the tech sector, which can be prone to rapid shifts in investor sentiment and market dynamics.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of possible future outcomes, suggest a wide variance in potential portfolio values. With 992 out of 1,000 simulations yielding positive returns and a median projected increase of 807.8%, the forward-looking outlook appears robust. However, the broad range from the 5th to the 67th percentile underscores the inherent uncertainty and risk, particularly given the portfolio’s tech-heavy and US-centric focus.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is overwhelmingly in stocks (99%), with a minimal cash reserve (1%). This allocation supports a growth strategy but limits flexibility and increases exposure to market volatility. The absence of bonds or alternative investments reduces potential buffers against stock market downturns, suggesting an aggressive risk posture aligned with the portfolio's growth classification.

Sectors Info

  • Technology
    43%
  • Consumer Discretionary
    10%
  • Telecommunications
    10%
  • Financials
    10%
  • Health Care
    7%
  • Industrials
    7%
  • Consumer Staples
    5%
  • Energy
    2%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    1%

Sector allocation is heavily skewed towards technology (43%), followed by consumer cyclicals, communication services, and financial services, each constituting 10%. This concentration enhances exposure to sector-specific risks, particularly in technology, which can be volatile. Diversifying across more sectors or reducing the tech overweight could mitigate some risk without significantly detracting from growth potential.

Regions Info

  • North America
    83%
  • Europe Developed
    7%
  • Asia Developed
    3%
  • Asia Emerging
    3%
  • Japan
    2%
  • Australasia
    1%
  • Latin America
    1%
  • Africa/Middle East
    1%

Geographic allocation is predominantly in North America (83%), with modest exposure to developed and emerging markets outside the US. This concentration benefits from the strength of the US economy and its tech sector but may miss out on potential gains from emerging markets and other developed economies. Increasing international diversification could provide a hedge against US market downturns and access to growth in other regions.

Market capitalization Info

  • Mega-cap
    49%
  • Large-cap
    35%
  • Mid-cap
    14%
  • Small-cap
    1%

The portfolio's market capitalization breakdown shows a preference for mega (49%) and big (35%) cap stocks, with lesser exposure to medium, small, and micro caps. This skew towards larger companies is typical for growth strategies focusing on established, stable entities. However, incorporating a greater mix of medium and small-cap stocks could enhance growth potential and 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.

Optimizing this portfolio using the Efficient Frontier could potentially enhance the risk-return profile. Currently, the heavy reliance on technology and US equities offers substantial growth opportunities but at a higher risk. Adjusting the asset allocation to include a broader mix of sectors and geographies could achieve a more efficient balance, improving the portfolio’s risk-adjusted returns while still targeting growth.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • VanEck Semiconductor ETF 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.15%

The portfolio's dividend yield averages 1.15%, with the highest yield from the Vanguard Total International Stock Index Fund ETF at 2.80%. While dividends are not the primary focus of a growth-oriented strategy, they provide a passive income stream and can offer some cushion during market downturns. Balancing growth assets with those offering higher dividend yields could improve income without significantly compromising growth potential.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.10%

The portfolio's overall expense ratio (TotalTER) of 0.10% is impressively low, maximizing the potential for net returns. This cost efficiency is crucial for long-term growth, as even small differences in fees can have a significant impact over time. Maintaining a focus on low-cost investments will continue to support portfolio performance.

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