A growth-oriented portfolio with a strong focus on technology and global equities
Report created on Sep 3, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
QQ Invesco NASDAQ 100 ETF
QQQM - US46138G6492 50.00% -
VT Vanguard Total World Stock Index Fund ETF Shares
VT - US9220427424 50.00%
This portfolio is evenly split between the Invesco NASDAQ 100 ETF and the Vanguard Total World Stock Index Fund ETF Shares, indicating a strategic focus on technology-heavy and global equities. The NASDAQ 100 ETF's concentration in technology stocks complements the broader exposure of the Total World Stock Index, aiming to balance high-growth potential with global diversification. However, the overall diversification is classified as low, primarily due to the heavy weighting in technology and North American markets.
Growth
With a Compound Annual Growth Rate (CAGR) of 14.69% and a maximum drawdown of -30.59%, the portfolio demonstrates robust growth with significant volatility. The days contributing most to returns are relatively few, highlighting the portfolio's reliance on specific high-growth periods. This performance is characteristic of growth-oriented portfolios, where high returns are often accompanied by higher risk, as indicated by the portfolio's risk score of 5 out of 7.
Projection
Monte Carlo simulations, which forecast potential outcomes based on historical data, suggest a wide range of future performance scenarios for this portfolio. With 990 out of 1,000 simulations showing positive returns and a median projected increase of 526.2%, the forward-looking analysis supports the portfolio's growth potential. However, it's crucial to remember that such simulations have limitations and cannot predict future market conditions with certainty.
Asset classes
- Stocks 99%
- Cash 1%
The portfolio's asset allocation is heavily skewed towards stocks (99%), with a minimal cash holding (1%), reflecting a clear growth strategy. This high equity exposure is suited for investors with a higher risk tolerance and a longer investment horizon, as equities typically offer higher returns over the long term but can be volatile in the short term.
Sectors
- Technology 40%
- Telecommunications 12%
- Consumer Discretionary 12%
- Financials 9%
- Industrials 8%
- Health Care 7%
- Consumer Staples 5%
- Basic Materials 2%
- Energy 2%
- Utilities 2%
- Real Estate 1%
The sectoral allocation underscores a significant emphasis on technology (40%), followed by communication services and consumer cyclicals (each 12%). This concentration in tech and growth sectors is consistent with the portfolio's growth profile but may increase volatility and risk, particularly in market downturns or during sector-specific corrections.
Regions
- North America 49%
- Europe Developed 1%
Geographically, the portfolio is heavily weighted towards North America (49%), with minimal exposure to developed Europe (1%) and no direct investments in Latin America or Asia Emerging markets. This geographic concentration could limit diversification benefits and may increase susceptibility to regional economic and political risks.
Market capitalization
- Mega-cap 50%
- Large-cap 31%
- Mid-cap 14%
- Small-cap 3%
The allocation by market capitalization shows a preference for mega (50%) and big (31%) cap stocks, which typically offer stability and solid growth but may not capture the high-growth potential of smaller companies. Medium (14%), small (3%), and micro (0%) cap stocks are underrepresented, suggesting an opportunity to enhance growth potential by increasing exposure to these segments.
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 current allocation shows potential for optimization towards the Efficient Frontier, where the portfolio could achieve the best possible risk-return ratio based on its assets. Adjusting the allocation to include a broader range of sectors and geographies, as well as incorporating small and medium cap stocks, could improve diversification and potentially enhance risk-adjusted returns.
Dividends
- Invesco NASDAQ 100 ETF 0.50%
- Vanguard Total World Stock Index Fund ETF Shares 1.70%
- Weighted yield (per year) 1.10%
The portfolio's dividend yield stands at 1.10%, with the Invesco NASDAQ 100 ETF and the Vanguard Total World Stock Index Fund ETF Shares contributing 0.50% and 1.70%, respectively. While not the primary focus of a growth-oriented portfolio, dividends provide a source of income and can contribute to total returns, especially in volatile or flat markets.
Ongoing product costs
- Invesco NASDAQ 100 ETF 0.15%
- Vanguard Total World Stock Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.11%
With a total expense ratio (TER) of 0.11%, the portfolio benefits from relatively low costs, which can significantly enhance long-term returns. Keeping costs low is a crucial aspect of investment strategy, as high fees can erode returns over time, particularly in growth-oriented portfolios where compounding plays a vital role.
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