Tech-focused growth portfolio with high exposure to leading tech firms and AI innovation

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 heavily concentrated in the technology sector, with significant investments in two ETFs and a major stake in Alphabet Inc. Class C stock. The Invesco NASDAQ 100 ETF and Global X Artificial Intelligence & Technology ETF together make up 67% of the portfolio, emphasizing a strong focus on tech and AI. Alphabet Inc., a leading company in digital communication services, accounts for the remaining 33%. This composition underlines a targeted growth strategy, leveraging the potential of tech giants and emerging tech trends.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 18.12% and a maximum drawdown of -41.15%, the portfolio has demonstrated robust growth potential amidst volatility. The days contributing to 90% of returns being concentrated in just 15 days highlight the portfolio's reliance on significant market movements for gains. Comparing this performance to a diversified benchmark could provide insight into the volatility and growth trade-off inherent in this strategy.

Projection Info

Monte Carlo simulations, which forecast potential future outcomes based on historical data, suggest a wide range of possible performances for this portfolio. The 50th percentile outcome of a 701.3% increase is optimistic, yet the broad spread to the 5th percentile at 66.1% indicates substantial risk. It's crucial to remember that these projections are speculative and depend heavily on past market behaviors continuing forward.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, with no allocation to bonds, real estate, or alternative investments. This singular focus on equities, particularly in high-growth sectors, maximizes potential returns but also exposes the investor to higher market risk and volatility. Diversifying across asset classes could provide a buffer against sector-specific downturns.

Sectors Info

  • Telecommunications
    43%
  • Technology
    41%
  • Consumer Discretionary
    7%
  • Industrials
    3%
  • Health Care
    2%
  • Consumer Staples
    2%

Sector allocation is heavily skewed towards technology and communication services, making the portfolio susceptible to sector-specific risks. While the tech sector offers substantial growth opportunities, it can be volatile, especially during market corrections or interest rate hikes. Broadening the sector exposure could mitigate some of this risk while still capturing growth opportunities in other areas.

Regions Info

  • North America
    90%
  • Asia Developed
    3%
  • Asia Emerging
    3%
  • Europe Developed
    2%
  • Japan
    1%

The portfolio's geographic exposure is predominantly in North America (90%), with minimal allocations to Asia and Europe. This concentration enhances exposure to the US market's growth potential but also increases vulnerability to regional economic fluctuations. Increasing international diversification could reduce risk and tap into growth opportunities in other regions.

Market capitalization Info

  • Mega-cap
    69%
  • Large-cap
    23%
  • Mid-cap
    7%
  • Small-cap
    1%

The focus on mega and big-cap companies (92% combined) aligns with the portfolio's growth and stability objectives, leveraging the dominance and innovation of established firms. However, incorporating a modest allocation to mid and small-cap stocks could enhance return potential, as these segments often outperform larger caps over the long term in growth phases.

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 allocation suggests a strong emphasis on growth, primarily through tech exposure. While this strategy may offer high returns, it also carries significant risk. Using the Efficient Frontier concept could identify opportunities to adjust asset allocations, potentially enhancing the risk-return profile without drastically sacrificing growth potential.

Dividends Info

  • Global X Artificial Intelligence & Technology ETF 0.10%
  • Alphabet Inc Class C 0.40%
  • Invesco NASDAQ 100 ETF 0.50%
  • Weighted yield (per year) 0.34%

The portfolio's dividend yield, averaging 0.34%, contributes modestly to total returns. In a growth-focused strategy, reinvesting these dividends into the portfolio can compound growth over time. However, investors seeking income in addition to growth might consider assets with higher yield potential.

Ongoing product costs Info

  • Global X Artificial Intelligence & Technology ETF 0.68%
  • Invesco NASDAQ 100 ETF 0.15%
  • Weighted costs total (per year) 0.28%

The Total Expense Ratio (TER) of 0.28% is relatively low, indicating cost-effective management of the portfolio. The low costs are beneficial for long-term growth, as they minimize the drag on performance. Keeping costs low is a key factor in maximizing net returns over time.

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