Growth-focused portfolio with high tech exposure and emphasis on quality and momentum ETFs

Report created on Jul 19, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio showcases a concentrated approach, heavily weighted towards technology through the Fidelity® MSCI Information Technology Index ETF, and further diversified across quality and momentum strategies within the S&P 500 and MidCap spaces. The high allocation to specific ETFs indicates a strategy that leans towards growth sectors, with a notable absence of bond or alternative asset classes. This composition aligns with a growth-oriented risk profile but carries a low diversification score, suggesting a potential vulnerability to sector-specific downturns.

Growth Info

Historically, this portfolio has delivered a Compound Annual Growth Rate (CAGR) of 19.91%, with a maximum drawdown of -33.97%. These figures suggest a high-growth trajectory, albeit with significant volatility. The days contributing to 90% of returns being limited to 21 highlight the portfolio's reliance on short, sharp gains, typical of growth-focused investments. When compared to broader market benchmarks, this performance may indicate a higher risk-return trade-off, necessitating a closer examination of risk tolerance and investment horizon.

Projection Info

Monte Carlo simulations, using historical data to project future outcomes, suggest a wide range of potential future values, with a median increase of 916.5%. While these projections offer a positive outlook, it's crucial to remember that they are based on past performance, which is not a reliable indicator of future results. The high percentile outcomes underscore the portfolio's growth potential, but the significant span between the 5th and 67th percentiles also highlights the inherent risks.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive allocation to stocks, without any bonds or alternative assets, underscores a clear growth orientation but raises concerns about diversification and risk management. In periods of market volatility, the absence of non-correlated assets could lead to heightened portfolio fluctuations. Diversifying across different asset classes could provide a buffer against stock market downturns, potentially smoothing out returns over time.

Sectors Info

  • Technology
    38%
  • Financials
    15%
  • Industrials
    14%
  • Consumer Staples
    9%
  • Consumer Discretionary
    9%
  • Health Care
    4%
  • Telecommunications
    4%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    1%
  • Real Estate
    1%

Sector allocation is heavily skewed towards technology, which, while offering substantial growth opportunities, also exposes the portfolio to sector-specific risks. The presence of financial services, industrials, and consumer sectors provides some balance, yet the overall sectoral distribution reinforces the portfolio's aggressive growth stance. Given the cyclical nature of sectors like technology and consumer cyclicals, investors should be prepared for volatility and consider whether this aligns with their risk tolerance.

Regions Info

  • North America
    99%

The almost exclusive focus on North America, with 99% allocation, suggests a strong home bias, potentially missing out on growth opportunities in emerging markets and developed markets outside the U.S. This geographic concentration can increase exposure to regional economic and political risks. Broadening the geographic distribution could enhance diversification benefits and potentially reduce volatility.

Market capitalization Info

  • Mega-cap
    31%
  • Large-cap
    27%
  • Mid-cap
    18%
  • Small-cap
    17%
  • Micro-cap
    7%

The portfolio's market capitalization breakdown shows a balanced exposure across mega, big, medium, small, and micro caps, which is a positive aspect in terms of diversification within the equity space. This mix allows for capturing growth across different company sizes, though the emphasis on larger companies suggests a tilt towards stability and established growth patterns. Small and micro-cap allocations introduce higher growth potential but also higher volatility and risk.

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 composition and its alignment with the Efficient Frontier, there may be room for optimization to achieve a better risk-return ratio. The heavy focus on growth stocks, particularly in technology, suggests a higher-risk profile. By adjusting allocations or diversifying into additional asset classes, the portfolio could potentially move closer to the Efficient Frontier, optimizing returns for the level of risk taken.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Fidelity® MSCI Information Technology Index ETF 0.40%
  • Invesco S&P 500® Quality ETF 1.10%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Invesco S&P MidCap Quality ETF 0.70%
  • Invesco S&P MidCap Momentum ETF 0.70%
  • Weighted yield (per year) 0.82%

The portfolio's overall dividend yield of 0.82% reflects a moderate income component, secondary to its growth focus. The yields from the individual ETFs vary, with the Avantis® U.S. Small Cap Value ETF offering the highest yield, indicative of its value orientation. While dividends contribute to total returns, the primary goal here appears to be capital appreciation, consistent with the portfolio's growth orientation.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Fidelity® MSCI Information Technology Index ETF 0.08%
  • Invesco S&P 500® Quality ETF 0.15%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Invesco S&P MidCap Quality ETF 0.25%
  • Invesco S&P MidCap Momentum ETF 0.34%
  • Weighted costs total (per year) 0.17%

The Total Expense Ratio (TER) of 0.17% is relatively low, which is beneficial for long-term growth as it minimizes the drag on performance. Costs across the ETFs range from 0.08% to 0.34%, with the Invesco S&P MidCap Momentum ETF being the most expensive. Keeping costs low is crucial for maximizing returns, especially in a growth-focused strategy where compound growth plays a significant role.

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