Growth-focused portfolio with high exposure to US value and tech sectors
Report created on Aug 10, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
VF Vanguard U.S. Value Factor
VFVA - US9219358051 75.00% -
QQ Invesco QQQ Trust
QQQ - US46090E1038 25.00%
This portfolio is heavily weighted towards two ETFs: Vanguard U.S. Value Factor (75%) and Invesco QQQ Trust (25%), both of which are stock-based, reflecting a 100% allocation in equities. This structure indicates a strong growth orientation but comes with low diversification across asset classes and a concentrated exposure to the U.S. market. The sectoral distribution spans across financial services, technology, consumer cyclicals, and others, yet the portfolio's diversification score is notably low, pointing towards significant concentration risks.
Growth
Historically, the portfolio has delivered a Compound Annual Growth Rate (CAGR) of 13.57%, with a maximum drawdown of -40.55%. Notably, 90% of the returns were generated over just 15 days, highlighting the portfolio's reliance on short-term gains for its performance. Such volatility underscores the growth profile but also emphasizes the risk associated with the portfolio's concentrated positions.
Projection
Monte Carlo simulations, based on 1,000 iterations, suggest a wide range of potential outcomes, from a 5th percentile growth of 39.3% to a 67th percentile growth of 950.5%. This analysis, while useful for understanding potential volatility and reward, is inherently limited by reliance on historical data. It underscores the portfolio's growth potential but also its significant risk, as evidenced by the broad spread of outcomes.
Asset classes
- Stocks 100%
The portfolio's 100% allocation to stocks, without diversification into other asset classes like bonds or real estate, positions it for high growth but also high volatility. This allocation suits investors with a high-risk tolerance and a long-term investment horizon, as equities can offer substantial returns over time but are subject to short-term market fluctuations.
Sectors
- Financials 20%
- Technology 19%
- Consumer Discretionary 13%
- Health Care 10%
- Energy 9%
- Industrials 9%
- Telecommunications 8%
- Consumer Staples 6%
- Basic Materials 5%
- Real Estate 1%
With significant allocations to financial services, technology, and consumer cyclicals, the portfolio is poised to benefit from growth in these sectors. However, its heavy reliance on technology and financial services, sectors known for volatility, can lead to larger swings in value, particularly during economic downturns or sector-specific disruptions.
Regions
- North America 98%
- Europe Developed 1%
The geographic allocation is overwhelmingly concentrated in North America (98%), with minimal exposure to developed Europe and no presence in emerging markets or Asia. This focus on the U.S. market enhances the portfolio's growth prospects but also increases its vulnerability to regional economic fluctuations and limits global diversification benefits.
Market capitalization
- Large-cap 24%
- Micro-cap 21%
- Mid-cap 20%
- Small-cap 19%
- Mega-cap 16%
The portfolio's market capitalization spread, with a relatively balanced exposure across big, micro, medium, small, and mega-cap stocks, suggests an effort to balance risk and reward across different company sizes. However, the significant exposure to micro-cap stocks introduces higher volatility and potential for growth, aligning with the portfolio's overall growth-oriented strategy.
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 current portfolio's expected return is below the optimal level identified through Efficient Frontier analysis, which suggests a more efficient allocation could yield an expected return of 20.36% at the same risk level. This indicates room for improvement in diversification and asset allocation to enhance risk-adjusted returns without necessarily increasing the portfolio's overall risk.
Dividends
- Invesco QQQ Trust 0.50%
- Vanguard U.S. Value Factor 2.40%
- Weighted yield (per year) 1.92%
The portfolio offers a blended dividend yield of 1.92%, with the Vanguard U.S. Value Factor ETF contributing a higher yield. While dividends provide a stream of income and can contribute to total return, the focus here seems to be more on growth than on generating income, consistent with the portfolio's overall strategy.
Ongoing product costs
- Invesco QQQ Trust 0.20%
- Vanguard U.S. Value Factor 0.13%
- Weighted costs total (per year) 0.15%
With a total expense ratio (TER) of 0.15%, the portfolio benefits from relatively low costs, which is commendable. Lower costs mean more of the investment's return is kept by the investor, a crucial factor in long-term growth. This efficiency in managing costs is a positive aspect of the portfolio's structure.
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