Growth-focused portfolio with heavy emphasis on US equities and technology sector

Report created on Jul 18, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is predominantly invested in ETFs, with a significant concentration in the Vanguard S&P 500 ETF, Schwab U.S. Dividend Equity ETF, and Invesco QQQ Trust, making up 95% of the allocation. The remaining 5% is spread across mid-cap, small-cap, technology, and international developed momentum ETFs. This composition reflects a strong bias towards large-cap US equities, particularly in the technology sector, with minimal exposure to international markets and smaller companies.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 17%, with a maximum drawdown of -32.35%. These figures indicate a high growth potential but also a significant risk, as evidenced by the substantial drawdown. The days contributing to 90% of the returns being concentrated in a short period suggests volatility and the importance of being invested during these key times to capture the portfolio's full growth potential.

Projection Info

Monte Carlo simulations, utilizing 1,000 iterations, project a wide range of potential outcomes, from a 120.2% increase at the 5th percentile to a 1,356.4% increase at the 67th percentile. These projections underscore the portfolio's high growth potential but also highlight the inherent uncertainty and risk. The high percentage of simulations with positive returns (99.4%) suggests optimism but should be viewed with caution, as past performance is not indicative of future results.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, showcasing a lack of diversification across asset classes. While this can enhance growth potential, it also increases susceptibility to market volatility. Diversifying across different asset classes, such as bonds or real estate, could provide a buffer during stock market downturns, potentially reducing overall portfolio volatility.

Sectors Info

  • Technology
    29%
  • Consumer Discretionary
    11%
  • Consumer Staples
    10%
  • Financials
    10%
  • Health Care
    10%
  • Telecommunications
    9%
  • Industrials
    8%
  • Energy
    8%
  • Basic Materials
    2%
  • Utilities
    1%
  • Real Estate
    1%

The sectoral allocation is heavily skewed towards technology, which comprises 29% of the portfolio. Other significant sectors include consumer cyclicals, consumer defensive, financial services, and healthcare. This concentration in technology, while capitalizing on the growth of the tech industry, also exposes the portfolio to sector-specific risks, such as regulatory changes or market sentiment shifts.

Regions Info

  • North America
    98%
  • Europe Developed
    1%

Geographically, the portfolio is almost entirely focused on North America, with a negligible allocation to developed Europe and no exposure to emerging markets or other developed regions. This geographic concentration limits diversification benefits and exposure to potential growth in international markets, which could diversify risk and possibly enhance returns.

Market capitalization Info

  • Large-cap
    41%
  • Mega-cap
    32%
  • Mid-cap
    22%
  • Small-cap
    4%
  • Micro-cap
    1%

The market capitalization exposure leans heavily towards big and mega-cap stocks, which constitute 73% of the portfolio. While these companies typically offer stability and steady growth, the underrepresentation of medium, small, and micro-cap stocks limits the portfolio's potential to benefit from the often higher growth rates of smaller companies.

Redundant positions Info

  • Invesco QQQ Trust
    Fidelity® MSCI Information Technology Index ETF
    High correlation

The high correlation between Invesco QQQ Trust and Fidelity® MSCI Information Technology Index ETF indicates overlapping investments within the technology sector, reducing the diversification benefits. Diversification across uncorrelated assets can reduce risk without necessarily sacrificing returns, suggesting a reevaluation of these holdings could be beneficial.

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 risk-return profile could be optimized by addressing the high correlation among certain assets and the lack of diversification across asset classes and geographies. Utilizing the Efficient Frontier concept could help in reallocating investments to achieve a more favorable risk-return balance, potentially improving the portfolio's overall performance without significantly increasing risk.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • Fidelity® MSCI Information Technology Index ETF 0.40%
  • Invesco S&P International Developed Momentum ETF 2.00%
  • Invesco QQQ Trust 0.40%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Vanguard S&P 500 ETF 1.20%
  • Invesco S&P MidCap Momentum ETF 0.70%
  • Weighted yield (per year) 1.89%

The portfolio's total dividend yield stands at 1.89%, with the Schwab U.S. Dividend Equity ETF contributing a significant 3.80%. Dividends can provide a steady income stream and contribute to total return, especially in volatile or declining markets. However, the focus on growth has likely limited higher dividend yields that more conservative investments might offer.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • Fidelity® MSCI Information Technology Index ETF 0.08%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco QQQ Trust 0.20%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Invesco S&P MidCap Momentum ETF 0.34%
  • Weighted costs total (per year) 0.08%

The total expense ratio (TER) of 0.08% is impressively low, enhancing long-term returns by minimizing costs. Keeping investment costs low is critical for maximizing net returns, especially in a growth-oriented portfolio where compounding plays a significant role over time.

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