A speculative portfolio with high concentration in SoFi Technologies and strong ETF presence

Report created on Jul 24, 2025

Risk profile Info

7/7
Speculative
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is notably concentrated, with over half invested in SoFi Technologies Inc., complemented by significant allocations to two Vanguard ETFs. Such a structure positions the portfolio heavily towards financial services and technology sectors, reflecting a speculative risk profile. The high concentration in a single stock, alongside ETFs, suggests an aggressive pursuit of growth, albeit with increased volatility and risk.

Growth Info

Historically, this portfolio has exhibited a high Compound Annual Growth Rate (CAGR) of 28.58%. However, it's also faced significant volatility, as evidenced by a maximum drawdown of -60.46%. These figures underscore the portfolio's speculative nature, where high returns come with substantial risk. The days contributing most to returns indicate that performance peaks are narrow and potentially unpredictable.

Projection Info

Monte Carlo simulations project a wide range of outcomes, from a 5th percentile loss of -41.2% to a 67th percentile gain of 996.8%, highlighting the portfolio's speculative nature. While the majority of simulations predict positive returns, the potential for significant losses cannot be overlooked. This underscores the importance of understanding the inherent volatility and risks associated with such a concentrated investment strategy.

Asset classes Info

  • Stocks
    100%

The portfolio's assets are exclusively in stocks, with no diversification into other asset classes like bonds or real estate. This lack of diversification amplifies risk, especially in market downturns. Stocks can offer high returns but are more susceptible to market volatility, making the portfolio's overall risk profile higher.

Sectors Info

  • Financials
    63%
  • Technology
    12%
  • Consumer Discretionary
    5%
  • Industrials
    5%
  • Health Care
    4%
  • Telecommunications
    4%
  • Consumer Staples
    3%
  • Energy
    1%
  • Real Estate
    1%
  • Basic Materials
    1%
  • Utilities
    1%

The sectoral allocation is heavily weighted towards financial services, primarily due to the large stake in SoFi Technologies, with technology also representing a significant portion. This concentration enhances exposure to sector-specific risks, such as regulatory changes or economic cycles affecting financial and tech industries. Diversifying across more sectors could mitigate some of these risks.

Regions Info

  • North America
    95%
  • Europe Developed
    3%
  • Japan
    1%

The portfolio's geographic allocation is predominantly in North America, with minimal exposure to developed markets in Europe and Japan. This concentration in a single region increases susceptibility to regional economic and political events. Expanding geographic diversification could provide a buffer against North American market volatility.

Market capitalization Info

  • Large-cap
    70%
  • Mega-cap
    18%
  • Mid-cap
    8%
  • Small-cap
    3%
  • Micro-cap
    1%

The focus on big and mega-cap stocks suggests a preference for established companies, potentially offering stability and lower volatility compared to smaller caps. However, the portfolio's significant allocation to a single mid-cap stock (SoFi Technologies) introduces higher specific risk, which could be mitigated by broadening the market cap distribution.

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.

Given the portfolio's speculative nature and high concentration in specific stocks and sectors, there's room for optimization towards the Efficient Frontier. This would involve adjusting allocations to achieve a more favorable risk-return balance, potentially by diversifying across more asset classes and sectors to reduce volatility without significantly compromising expected returns.

Dividends Info

  • Royal Bank of Canada 3.10%
  • Vanguard FTSE Developed Markets Index Fund ETF Shares 2.60%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 0.72%

The dividend yields from the Vanguard ETFs and Royal Bank of Canada contribute to the portfolio's income, albeit modestly. In a speculative portfolio, dividends can provide a steady income stream, which is particularly valuable during market downturns. However, the overall yield is low, reflecting the growth-oriented nature of the portfolio.

Ongoing product costs Info

  • Vanguard FTSE Developed Markets Index Fund ETF Shares 0.05%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.01%

The low total expense ratios (TERs) of the Vanguard ETFs are a positive aspect, helping to minimize costs and potentially enhance long-term returns. Keeping investment costs low is crucial for maximizing net returns, especially in a speculative portfolio where high volatility can already erode gains.

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