Growth-focused portfolio with heavy reliance on technology and North American stocks

Report created on Jul 4, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily invested in equities, with a significant emphasis on technology and large-cap stocks. The Vanguard S&P 500 ETF and Invesco QQQ Trust together account for 75% of the portfolio, indicating a strong focus on U.S. large-cap and technology sectors. The inclusion of the Vanguard Total Stock Market Index Fund ETF Shares and Vanguard Total International Stock Index Fund ETF Shares adds some diversification, but the overall exposure remains predominantly in North America.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 15.35%, with a maximum drawdown of -31.88%. These figures suggest a high return potential but also significant volatility, as evidenced by the substantial drawdown. The days contributing to 90% of returns being concentrated in just 34.0 days highlights the portfolio's reliance on short, sharp market movements for gains.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the 50th percentile suggesting a 480.3% return. However, the reliance on historical data in these simulations means they cannot predict future market conditions with certainty. Investors should be cautious about over-reliance on these projections, as past performance is not indicative of future results.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation to 100% stocks underscores its growth orientation but also its higher risk profile. This singular focus on equities, without the balance of bonds or other asset classes, may increase volatility and risk, especially in down markets.

Sectors Info

  • Technology
    36%
  • Consumer Discretionary
    11%
  • Telecommunications
    11%
  • Financials
    11%
  • Health Care
    8%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Energy
    2%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

A 36% allocation to technology, along with significant investments in consumer cyclicals, communication services, and financial services, positions this portfolio for growth but also exposes it to sector-specific downturns. The limited exposure to defensive sectors like utilities and consumer defensive may reduce the portfolio's resilience during market volatility.

Regions Info

  • North America
    90%
  • Europe Developed
    5%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%

With 90% of assets allocated to North America, the portfolio's geographic diversification is limited. While this concentration has historically benefited investors due to the strong performance of U.S. markets, it also increases vulnerability to regional economic and political events.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    33%
  • Mid-cap
    16%
  • Small-cap
    2%

The focus on mega (48%) and big (33%) cap stocks supports the portfolio's growth objectives while potentially offering more stability than smaller cap stocks. However, the limited exposure to small (2%) and micro (0%) cap stocks may restrict opportunities for outsized gains from smaller, high-growth companies.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Vanguard S&P 500 ETF
    High correlation

The high correlation between the Vanguard S&P 500 ETF and Vanguard Total Stock Market Index Fund ETF Shares indicates overlapping holdings that may not provide the intended diversification benefits. Reducing exposure to similar assets could enhance portfolio efficiency by reducing redundancy.

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.

Considering the portfolio's current risk-return profile, optimization efforts should focus on reducing overlap between the S&P 500 and Total Stock Market ETFs to enhance diversification. Additionally, introducing assets with lower correlation to existing holdings could improve the portfolio's resilience to market fluctuations.

Dividends Info

  • Invesco QQQ Trust 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.12%

The overall dividend yield of 1.12% contributes to the portfolio's total return but is not the primary focus. The higher yield from the Vanguard Total International Stock Index Fund ETF Shares (2.80%) introduces some income generation, which could be particularly beneficial during market downturns or for investors seeking income.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.08%

With a total expense ratio (TER) of 0.08%, the portfolio is cost-efficient, which is advantageous for long-term growth. Lower costs mean more of the investment's return is retained by the investor, a critical factor in compounding growth over time.

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