A growth-focused portfolio with tech concentration and strong past performance seeking optimization

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio suits an investor seeking high growth with a moderate to high risk tolerance and a long-term horizon. It emphasizes capital appreciation through a tech-heavy focus and minimal diversification, appealing to those comfortable with volatility. The investor should have a keen interest in maximizing returns and be willing to endure potential market fluctuations. Ideal for individuals looking to build wealth aggressively, this portfolio requires active management and periodic adjustments to align with evolving market conditions and personal goals.

Positions

  • Schwab U.S. Dividend Equity ETF
    SCHD - US8085247976
    22.32%
  • Vanguard S&P 500 ETF
    VOO - US9229083632
    20.73%
  • Schwab U.S. Large-Cap Growth ETF
    SCHG - US8085243009
    19.97%
  • Taiwan Semiconductor Manufacturing
    TSM - US8740391003
    9.04%
  • SPDR® S&P Semiconductor ETF
    XSD - US78464A8624
    8.67%
  • NVIDIA Corporation
    NVDA - US67066G1040
    7.63%
  • SPDR® S&P Aerospace & Defense ETF
    XAR - US78464A6313
    7.14%
  • Global X Funds
    SHLD
    2.45%
  • Palantir Technologies Inc
    PLTR - US69608A1088
    2.01%
  • Fidelity® Government Money Market Fund
    SPAXX - US31617H1023
    0.04%

The portfolio is heavily weighted towards ETFs, with a significant portion in U.S. dividend and large-cap growth ETFs. This composition indicates a focus on growth and income, with 100% allocation in stocks. Compared to a typical balanced benchmark, this portfolio is more aggressive, lacking bonds or other fixed-income securities. This aggressive stance is suitable for investors seeking capital appreciation but may expose the portfolio to higher volatility. To diversify risk, consider adding different asset classes, such as bonds or real estate, which can provide stability during market fluctuations.

Warning Historical data is limited for this portfolio, which reduces the confidence in the calculated values.

Growth Info

Historically, the portfolio has delivered impressive returns, with a CAGR of 40.94% and a relatively moderate max drawdown of -12.42%. This performance suggests a strong upside with manageable risks. However, it's important to note that past performance does not guarantee future results, as market conditions can change. The portfolio's ability to achieve such returns with limited drawdown is commendable, but investors should remain vigilant about potential market shifts. Regularly reviewing and rebalancing the portfolio can help maintain its performance while adapting to changing market conditions.

Warning Due to limited historical data, this may show extreme values that are not realistic.

Projection Info

The Monte Carlo simulation, which uses historical data to project potential future outcomes, indicates a high likelihood of substantial returns. With an annualized return of 73.55% across simulations, the portfolio appears poised for strong growth. However, simulations rely on past data and assumptions, and actual results may vary. Investors should consider these projections as one scenario among many possibilities. To align with personal goals, regularly assess the portfolio's performance against expected outcomes and adjust accordingly to ensure it meets long-term objectives.

Asset classes Info

  • Stocks
    100%
  • Cash
    0%
  • Unknown
    0%

With a 100% allocation in stocks, the portfolio lacks diversification across asset classes. While this concentration can enhance growth potential, it also increases exposure to market volatility. Typically, a diversified portfolio includes a mix of stocks, bonds, and alternative investments to balance risk and return. By introducing other asset classes, such as fixed income or commodities, the portfolio could achieve more stable returns over time. Consider gradually incorporating these elements to enhance diversification and mitigate potential downturns.

Sectors Info

  • Technology
    47%
  • Industrials
    14%
  • Financials
    8%
  • Health Care
    8%
  • Consumer Discretionary
    7%
  • Telecommunications
    6%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%
  • Unknown
    0%

The portfolio is heavily concentrated in the technology sector, accounting for 47% of the allocation. While this focus can drive growth, it also exposes the portfolio to sector-specific risks, such as regulatory changes or tech market downturns. Compared to broader benchmarks, this tech-heavy stance may lead to higher volatility. To reduce sector risk, consider diversifying into other sectors like healthcare or consumer goods. This approach can help balance the portfolio, providing stability and opportunities across different economic cycles.

Regions Info

  • North America
    89%
  • Asia Emerging
    9%
  • Europe Developed
    1%
  • Asia Developed
    0%
  • Africa/Middle East
    0%
  • Unknown
    0%
  • Latin America
    0%
  • Europe Emerging
    0%
  • Australasia
    0%
  • Japan
    0%

Geographically, the portfolio is predominantly concentrated in North America, with 89% exposure, and a smaller allocation in Asia Emerging at 9%. This regional focus aligns with many U.S.-centric benchmarks but limits exposure to international markets. Diversifying geographically can reduce regional economic risks and capture growth in emerging markets. Consider increasing exposure to Europe, Asia, or other regions to enhance diversification and benefit from global economic trends. This strategy can provide a buffer against U.S.-specific economic downturns.

Market capitalization Info

  • Mega-cap
    40%
  • Large-cap
    33%
  • Mid-cap
    18%
  • Small-cap
    7%
  • Micro-cap
    2%
  • Unknown
    0%

The portfolio is balanced across market capitalizations, with a significant allocation to mega-cap stocks at 40% and big-cap stocks at 33%. This distribution aligns with a growth-focused strategy, emphasizing stability and growth potential. However, the smaller allocation to small and micro-cap stocks may limit exposure to high-growth opportunities. To enhance potential returns, consider increasing the allocation to smaller companies, which can offer higher growth prospects and diversification benefits. This approach can complement the existing large-cap stability.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.60%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Global X Funds 0.10%
  • Fidelity® Government Money Market Fund 4.40%
  • Taiwan Semiconductor Manufacturing 1.10%
  • Vanguard S&P 500 ETF 1.20%
  • SPDR® S&P Aerospace & Defense ETF 0.30%
  • SPDR® S&P Semiconductor ETF 0.20%
  • Weighted yield (per year) 1.27%

The portfolio's total dividend yield stands at 1.27%, with the Schwab U.S. Dividend Equity ETF contributing significantly at 3.60%. This yield provides a steady income stream, appealing to income-focused investors. However, the overall yield is relatively modest, reflecting the growth-oriented nature of the portfolio. For investors seeking higher income, consider increasing exposure to high-dividend sectors or ETFs. Balancing growth and income can enhance total returns while providing regular cash flow, aligning with diverse investment goals.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Global X Funds 0.50%
  • Vanguard S&P 500 ETF 0.03%
  • SPDR® S&P Aerospace & Defense ETF 0.35%
  • SPDR® S&P Semiconductor ETF 0.35%
  • Weighted costs total (per year) 0.10%

The portfolio's total expense ratio (TER) is impressively low at 0.10%, with most ETFs having minimal costs. This cost efficiency supports better long-term performance by reducing the drag on returns. However, the Global X Funds carry a higher expense ratio of 0.50%, which may impact returns. To optimize costs, consider reviewing and potentially replacing high-cost funds with lower-cost alternatives. Maintaining a low-cost structure is essential for maximizing net returns over time, especially in a growth-focused portfolio.

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.

The portfolio shows potential for optimization using the Efficient Frontier, which identifies the best possible risk-return ratio. Currently, the portfolio's expected return could be increased to 99.57% with the same risk level. This optimization suggests reallocating assets to achieve a more efficient balance. However, it's important to align any changes with personal risk tolerance and investment goals. Regularly revisiting the portfolio's risk-return profile and adjusting allocations can enhance performance while maintaining desired risk levels.

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