High octane US growth with heavy tech tilt and strong but concentrated historical returns
Report created on May 31, 2024Risk profile
5/7
Diversification profile
2/5
Positions
-
QQ Invesco NASDAQ 100 ETF
QQQM - US46138G6492 33.00% -
VO Vanguard S&P 500 ETF
VOO - US9229083632 33.00% -
SO Invesco PHLX Semiconductor ETF
SOXQ - US46138G6153 32.90% -
AV Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 1.10%
The portfolio is built almost entirely around three big US equity ETFs, with a tiny slice in small cap value. Around a third is in a broad S&P 500 fund, another third in the NASDAQ 100, and almost a third in a focused semiconductor ETF, so everything points toward growth and tech. With 100% in stocks and no bonds or cash, the structure aims squarely at long-term growth instead of stability. This kind of composition can work well for someone who can ride through big swings, but it’s intentionally light on diversification cushions, so the ride is likely to feel bumpy at times.
Growth
Over the last few years, $1,000 grew to about $1,908, which is a compound annual growth rate (CAGR) of 14.48%. CAGR is like your average speed on a long road trip, smoothing out the stops and traffic. That beats both the US market and global market by a meaningful margin, showing how strongly this growth-heavy mix has benefited from recent tech leadership. The tradeoff is clear in the max drawdown of about -35%, meaning a peak-to-trough drop of more than a third. Past performance can’t predict the future, but it does show you’re trading extra volatility for higher upside.
Asset classes
- Stocks 100%
All of the money is in stocks, with no allocation to bonds, cash, or alternative assets. That makes the portfolio very straightforward but also very tied to equity market cycles. Stocks historically offer higher long-term returns than bonds, but they also fall harder during downturns. With no built-in shock absorbers, portfolio value will likely move sharply with sentiment toward growth companies. This all-stock setup aligns with a growth mindset and long horizon. Anyone wanting smoother performance, income, or lower drawdowns would typically introduce more asset class variety over time.
Sectors
- Technology 61%
- Telecommunications 9%
- Consumer Discretionary 8%
- Health Care 5%
- Consumer Staples 5%
- Financials 4%
- Industrials 4%
- Energy 2%
- Utilities 1%
- Basic Materials 1%
- Real Estate 1%
Sector exposure is dominated by technology at 61%, with smaller slices in areas like telecom, consumer, health care, and financials. This tech-heavy profile has powered strong returns in recent years when innovation and digital trends were rewarded. It also means results will be especially sensitive to interest rates, chip cycles, and sentiment around high-growth companies. When rates rise or investors rotate away from tech, this sort of allocation can underperform broader markets. The concentrated tilt is intentional growth-seeking behavior, but it naturally raises volatility compared to a more evenly spread sector mix.
Regions
- North America 95%
- Europe Developed 3%
- Asia Developed 1%
Geographically, the portfolio is overwhelmingly in North America at 95%, with only tiny exposure to Europe and developed Asia. That’s even more home-biased than common global benchmarks, which usually spread more meaningfully across multiple regions. The benefit is alignment with the largest and most innovative equity market, which has led performance for more than a decade. The tradeoff is that outcomes are closely tied to the US economy, policy, and currency. If non-US markets lead for a period, this structure might lag more diversified global mixes. It’s a clear, focused regional bet rather than a balanced global stance.
Market capitalization
- Mega-cap 44%
- Large-cap 36%
- Mid-cap 17%
- Small-cap 1%
- Micro-cap 1%
Market cap exposure leans heavily toward mega- and large-cap companies, which together account for about 80% of the portfolio. Mid caps add some variety, while small and micro caps are only tiny slices. Larger companies often provide more liquidity, transparency, and stability, which can soften some extremes compared with an all-small-cap approach. However, this tilt may miss some of the explosive growth or value opportunities that smaller companies sometimes offer. The small Avantis small-cap value piece adds a bit of that flavor, but the overall behavior will be driven mainly by big, well-known names.
True holdings
-
NV NVIDIA Corporation 8.91%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Invesco PHLX Semiconductor ETF
- Vanguard S&P 500 ETF
-
AA Apple Inc 4.63%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
AV Broadcom Inc 4.24%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Invesco PHLX Semiconductor ETF
- Vanguard S&P 500 ETF
-
MS Microsoft Corporation 3.52%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
AM Amazon.com Inc 2.64%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
MU Micron Technology Inc 2.21%
Part of fund(s):- Invesco PHLX Semiconductor ETF
-
GO Alphabet Inc Class A 2.18%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
AM Advanced Micro Devices Inc 2.14%
Part of fund(s):- Invesco PHLX Semiconductor ETF
-
ME Meta Platforms Inc. 1.97%
Part of fund(s):- Invesco NASDAQ 100 ETF
- Vanguard S&P 500 ETF
-
TS Tesla Inc 1.89%
Part of fund(s):- Invesco NASDAQ 100 ETF
- LS 1x Tesla Tracker ETP Securities GBP
- Vanguard S&P 500 ETF
- Top 10 total 34.32%
Looking through the ETFs, the biggest underlying exposures are a tight group of giant tech and semiconductor names like NVIDIA, Apple, Broadcom, Microsoft, and others. Many of these show up in more than one fund, so their true impact is larger than it appears from any single ETF. This “hidden overlap” means your fortunes are more tied to the same handful of companies than the fund list suggests. Overlap here is actually understated because only ETF top‑10 holdings are used, but even that partial view highlights meaningful concentration in a small group of mega-cap growth leaders.
Factors
Factor exposure shows mild tilts away from value, yield, and low volatility, with neutral exposure to size, momentum, and quality. Factors are like underlying “personality traits” of a portfolio: value focuses on cheaper stocks, momentum on recent winners, quality on strong balance sheets, and so on. Low scores in value and yield reinforce that this is a growth and price‑momentum story, not a bargain or income one. The low volatility factor also being underweight suggests returns may swing more than the broad market. Neutral quality and momentum are reassuring, keeping the tilt from being overly speculative.
Risk contribution
-
Invesco PHLX Semiconductor ETF
Weight: 32.90% 47.4% -
Invesco NASDAQ 100 ETF
Weight: 33.00% 29.9% -
Vanguard S&P 500 ETF
Weight: 33.00% 21.9% -
Avantis® U.S. Small Cap Value ETF
Weight: 1.10% 0.7%
Risk contribution shows how much each holding adds to the portfolio’s overall ups and downs, which can differ from simple weights. The semiconductor ETF is only about one-third of the portfolio, but it contributes nearly half the total risk, reflecting its higher volatility. Together, the three main ETFs account for over 99% of portfolio risk. That means your experience is effectively shaped by those three funds, especially the chip segment, regardless of the small-cap value slice. Aligning position sizes with how much risk they introduce is important; here, risk is intentionally concentrated in the highest-octane piece.
Redundant positions
-
High correlationInvesco NASDAQ 100 ETFVanguard S&P 500 ETF
The NASDAQ 100 ETF and the S&P 500 ETF are extremely highly correlated, moving almost in lockstep historically. Correlation measures how often assets move together; a value near 1.0 means they’re behaving similarly most of the time. Holding both still has benefits—each covers a slightly different slice of the market—but from a diversification standpoint they don’t offset each other much during downturns. True diversification usually comes from assets or strategies that zig when others zag, not ones that all move the same way. Here the portfolio is basically layered US growth exposure rather than mixing distinct behaviors.
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.
On the risk–return chart, the portfolio sits right on or very close to the efficient frontier. The efficient frontier is the curve showing the best possible return for each risk level using just these existing holdings. A Sharpe ratio of 0.61, similar to the minimum variance mix and not far from the optimal, signals that the current weightings use risk pretty effectively. The optimal portfolio would take on more risk for more return, while the minimum variance mix would dial back both. Since you’re already near the frontier, any improvements are more about fine-tuning preferences for volatility rather than fixing big inefficiencies.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.40%
- Invesco NASDAQ 100 ETF 0.50%
- Invesco PHLX Semiconductor ETF 0.50%
- Vanguard S&P 500 ETF 1.20%
- Weighted yield (per year) 0.74%
The total dividend yield of about 0.74% is modest, well below income-oriented portfolios or bond-heavy mixes. Dividend yield is simply the annual cash payout as a percentage of the investment value. In this setup, most of the expected return is from price appreciation, not cash flow. That’s very typical for growth-focused equity baskets and is not a flaw by itself. For someone not needing current income, reinvesting small dividends back into the portfolio can compound returns over time. However, it does mean this structure is less useful as a source of steady spending money in the near term.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- Invesco NASDAQ 100 ETF 0.15%
- Invesco PHLX Semiconductor ETF 0.19%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.12%
The average total expense ratio (TER) of around 0.12% is impressively low, especially given the specialized semiconductor exposure. TER is like a management fee: a small percentage taken each year to run the funds. Keeping costs down is one of the simplest and most reliable ways to keep more of the long-term return, since fees reduce growth every single year. The cheap S&P 500 core holding helps anchor expenses, while the slightly higher semiconductor and small-cap value fund costs are still very reasonable for their niche focus. Cost-wise, this setup is highly efficient and supports strong compounding.
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