A tech-heavy portfolio with a strong focus on US equities and moderate international exposure

Report created on Aug 8, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is predominantly invested in U.S. equities, with a significant 80% allocation to the Vanguard S&P 500 ETF and a 10% allocation to the Invesco NASDAQ 100 ETF, highlighting a strong emphasis on the technology sector. The remaining 10% is allocated to the Vanguard Total International Stock Index Fund ETF Shares, providing some international diversification. The heavy weighting towards large-cap U.S. stocks suggests a focus on growth through well-established companies, albeit with a moderate risk due to the high concentration in a single country and sector.

Growth Info

Historical performance shows a Compound Annual Growth Rate (CAGR) of 14.92%, with a maximum drawdown of -25.78%. This performance, particularly the high CAGR, is indicative of the portfolio's strong reliance on the robust growth of the U.S. stock market and the technology sector over the review period. However, the significant drawdown highlights potential volatility and risk, especially during market downturns. This performance history underscores the importance of understanding one's risk tolerance and the potential for short-term losses in pursuit of long-term gains.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median (50th percentile) suggesting a 501.4% increase in value. This type of simulation uses historical data to estimate future performance, providing a probabilistic forecast rather than a guaranteed outcome. It's crucial to note that while these projections offer a glimpse into potential future performance, they are based on past market behavior, which is not a reliable indicator of future results. Diversification and regular portfolio reviews can help manage risk against unpredictable market movements.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no exposure to other asset classes such as bonds or real estate. This allocation maximizes potential returns but also increases volatility and risk, especially during market downturns. Diversifying across different asset classes can provide a buffer against stock market volatility, as different asset classes often move in opposite directions.

Sectors Info

  • Technology
    33%
  • Financials
    13%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Health Care
    9%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

With a 33% allocation to technology, the portfolio is heavily weighted towards a sector known for its high growth potential but also for its volatility. Financial services, consumer cyclicals, and communication services also make up significant portions of the portfolio. This sectoral concentration enhances growth prospects but also increases susceptibility to sector-specific downturns. Diversifying across a broader range of sectors could reduce risk and stabilize returns over time.

Regions Info

  • North America
    90%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%

The geographic allocation is heavily skewed towards North America (90%), with minimal exposure to international markets. This concentration in developed markets, particularly the U.S., has historically offered strong growth opportunities but also exposes the portfolio to country-specific economic and political risks. Increasing exposure to emerging and developed markets outside of North America could offer additional growth opportunities and risk mitigation through geographic diversification.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    34%
  • Mid-cap
    17%
  • Small-cap
    1%

The portfolio's focus on mega (47%) and big (34%) cap stocks underscores a preference for stability and growth offered by large, established companies. While this can lead to solid returns, incorporating a broader mix of medium, small, and even micro-cap stocks could enhance diversification and potentially unlock higher growth rates, albeit with increased 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 Efficient Frontier, there may be room to optimize the portfolio for a better risk-return ratio. While the current allocation has favored growth, particularly through a heavy emphasis on technology and U.S. equities, diversifying across more asset classes and sectors could improve the portfolio's efficiency. This doesn't necessarily mean sacrificing returns but rather seeking a more balanced approach to risk and return.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.29%

The portfolio yields an overall dividend yield of 1.29%, with the highest yield coming from the Vanguard Total International Stock Index Fund ETF Shares at 2.80%. While dividends contribute to the portfolio's total return, the primary focus appears to be on capital appreciation. For investors seeking regular income, increasing the allocation to higher-yielding assets could provide a more consistent income stream.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

The portfolio benefits from low overall costs, with a Total Expense Ratio (TER) of just 0.04%. This efficiency is crucial for long-term growth, as lower costs directly translate to higher net returns. The low-cost nature of these ETFs is a strong positive, allowing the investor to retain a larger portion of the returns.

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