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

Report created on Jul 13, 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 predominantly invested in ETFs that track major indices, with 60% in the Vanguard S&P 500 ETF, 20% in the Invesco QQQ Trust, and 20% in the Vanguard Total World Stock Index Fund ETF Shares. This composition underscores a strong preference for equity investments, particularly in the technology sector and U.S. markets. The heavy allocation to the S&P 500 and QQQ Trust, both of which have significant tech exposure, coupled with the global reach of the Total World Stock Index Fund, offers a blend of domestic and international exposure, albeit with a pronounced U.S. bias.

Growth Info

The portfolio has shown a Compound Annual Growth Rate (CAGR) of 14.65%, with a maximum drawdown of -32.53%. These figures suggest a robust historical performance, particularly in bull markets, but also highlight potential vulnerability during market downturns. The days contributing to 90% of returns indicate that a few specific periods have driven most of the portfolio's gains, a common characteristic of equity-heavy strategies that can capture significant upside during rallies.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, this portfolio shows a wide range of outcomes. The median simulation suggests a 528.6% return, indicating strong growth potential. However, it's crucial to remember that such simulations are inherently uncertain and depend heavily on past market conditions repeating themselves, which may not always occur.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, showing a clear growth orientation but lacking in asset class diversification. This singular focus increases susceptibility to market volatility, as equities are more prone to fluctuate in value compared to bonds or other asset classes. Including different asset classes could help smooth out returns and reduce overall portfolio risk.

Sectors Info

  • Technology
    35%
  • Financials
    12%
  • Consumer Discretionary
    11%
  • Telecommunications
    11%
  • Health Care
    9%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

With 35% allocated to technology, followed by financial services and consumer cyclicals, the sectoral distribution reflects a growth-centric approach. This sectoral tilt towards technology and cyclical industries may lead to higher volatility, as these sectors can be significantly affected by economic cycles and interest rate changes. Diversifying into more defensive sectors could provide stability during market downturns.

Regions Info

  • North America
    92%
  • Europe Developed
    4%
  • Asia Emerging
    1%
  • Japan
    1%
  • Asia Developed
    1%

The geographic allocation is heavily skewed towards North America (92%), with minimal exposure to other regions. This concentration enhances the portfolio's vulnerability to U.S. market downturns and misses out on potential growth opportunities in emerging markets and other developed regions. Increasing geographic diversification could reduce risk and tap into global growth dynamics.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    34%
  • Mid-cap
    17%
  • Small-cap
    2%

The emphasis on mega (48%) and big (34%) cap stocks aligns with the portfolio's growth and stability objectives, as these companies are often more resilient during market fluctuations. However, the limited exposure to small and micro-cap stocks means potentially missing out on higher growth opportunities these segments can offer, albeit with increased risk.

Redundant positions Info

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

The high correlation between the Vanguard S&P 500 ETF and the Vanguard Total World Stock Index Fund ETF Shares suggests redundancy, as they both cover large portions of the U.S. market. This overlap dilutes the diversification benefits, making the portfolio more susceptible to systemic risks associated with the U.S. equity market.

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.

The portfolio's current risk-return profile suggests room for optimization, particularly by addressing the high correlation between certain assets. By diversifying more effectively across different asset classes, sectors, and geographies, the portfolio could achieve a better balance between risk and return, moving closer to the Efficient Frontier where each unit of risk is maximized for returns.

Dividends Info

  • Invesco QQQ Trust 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total World Stock Index Fund ETF Shares 1.80%
  • Weighted yield (per year) 1.16%

The dividend yields from the ETFs contribute to the portfolio's total income, with an overall yield of 1.16%. While not the primary focus of this growth-oriented portfolio, dividends offer a source of passive income and can provide a cushion during market downturns. Balancing growth and income-producing assets could enhance the portfolio's resilience.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.07%

The portfolio's total expense ratio (TER) of 0.07% is impressively low, minimizing the drag on returns. Keeping costs low is crucial for long-term investment success, as even small differences in fees can compound into significant amounts over time. This aspect of the portfolio is well-optimized for cost-efficiency.

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