Growth-focused portfolio with heavy tech exposure and low diversification

Report created on Jul 28, 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 heavily weighted towards technology, comprising 25% in a technology-specific ETF and significant allocations to growth-oriented funds that likely have substantial tech exposure. The remaining assets are in broad-market S&P 500 and total stock market ETFs. This composition reflects a strong growth orientation but exhibits low diversification, with 100% of the portfolio invested in stocks, primarily from North America, and a heavy concentration in mega-cap companies.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 17.72%, the portfolio has historically performed well, likely benefiting from the strong performance of the tech sector. However, the maximum drawdown of -32.39% indicates potential vulnerability to market volatility, particularly within the tech industry. The days contributing to 90% of returns highlight the portfolio's reliance on specific high-growth periods, underscoring its risk profile.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, suggest a wide range of outcomes, with the 50th percentile at a 745.0% increase. While these projections offer optimism, they also reflect the portfolio's high risk, as indicated by a substantial spread between the 5th and 67th percentiles. It's crucial to remember that such simulations are speculative and cannot guarantee future results.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks, without allocation to other asset classes like bonds or real estate, maximizes growth potential at the expense of diversification. This approach is consistent with a high-risk, high-reward strategy but may not suit all investors, especially those with shorter time horizons or a lower tolerance for volatility.

Sectors Info

  • Technology
    55%
  • Consumer Discretionary
    9%
  • Telecommunications
    9%
  • Financials
    8%
  • Health Care
    5%
  • Industrials
    5%
  • Consumer Staples
    3%
  • Real Estate
    1%
  • Energy
    1%
  • Utilities
    1%
  • Basic Materials
    1%

Sector analysis reveals a dominant 55% allocation to technology, with the remainder spread across consumer cyclicals, communication services, and other sectors. This tech-centric focus enhances growth prospects but increases susceptibility to sector-specific downturns. A more balanced sector allocation could mitigate some risk without significantly compromising growth potential.

Regions Info

  • North America
    100%

Geographic allocation is entirely focused on North America, omitting exposure to developed or emerging markets outside this region. This lack of global diversification can limit potential for risk reduction through geographic spread, particularly in times of localized economic downturns or market corrections in the U.S.

Market capitalization Info

  • Mega-cap
    55%
  • Large-cap
    27%
  • Mid-cap
    13%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio's concentration in mega and large-cap stocks (82%) aligns with its growth and risk profile, favoring established companies with proven track records. However, the minimal exposure to small and micro-cap stocks limits opportunities for outsized returns from emerging companies, which could add both risk and growth potential.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Vanguard S&P 500 ETF
    Vanguard Information Technology Index Fund ETF Shares
    Vanguard Growth Index Fund ETF Shares
    Vanguard S&P 500 Growth Index Fund ETF Shares
    High correlation

The high correlation among the portfolio's assets, especially between the total stock market and S&P 500 ETFs, indicates redundancy that does not contribute to diversification. Reducing overlap by reallocating highly correlated assets could enhance the portfolio's risk-adjusted returns without sacrificing growth.

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.

Optimization efforts should initially focus on reducing the portfolio's redundancy by addressing the high correlation among its assets. This could involve reallocating from overlapping ETFs to those offering distinct exposures or adding asset classes that provide diversification benefits, such as fixed income or international equities, to improve the risk-return profile.

Dividends Info

  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Weighted yield (per year) 0.68%

Dividend yields across the portfolio average 0.68%, reflecting the growth-focused strategy that typically features lower dividend payouts. Investors seeking income in addition to growth might consider diversifying into assets with higher dividend yields or specialized dividend-focused funds.

Ongoing product costs Info

  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.06%

The portfolio's overall expense ratio is impressively low at 0.06%, which is beneficial for long-term growth by minimizing the drag on returns due to costs. This cost efficiency is a positive aspect of the portfolio, particularly important for investors focused on maximizing net returns over time.

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