Growth-oriented tech-heavy portfolio with high exposure to US markets and notable sector concentration

Report created on Oct 27, 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 weighted towards technology, with a significant portion allocated to the iShares Core S&P 500 ETF, complemented by specialized tech-focused ETFs like the VanEck Semiconductor ETF, Invesco NASDAQ 100 ETF, and Vanguard Information Technology Index Fund ETF Shares. This composition underscores a clear growth orientation but comes with a high degree of sector concentration risk, particularly within the technology sector. While the heavy tilt towards tech stocks aligns with a growth strategy, it may increase volatility and risk, especially in market downturns.

Growth Info

Historically, this portfolio has demonstrated a robust compound annual growth rate (CAGR) of 20.43%, with a maximum drawdown of -32.21%. These figures indicate strong past performance but also suggest a high level of risk, as evidenced by the significant drawdown. The days contributing most to returns are relatively few, highlighting the portfolio's susceptibility to sharp market movements. Comparing these metrics to a diversified benchmark could provide further insight into performance relative to market volatility.

Projection Info

Monte Carlo simulations project a wide range of outcomes for this portfolio, with a median increase of 1,322.6% and a notable 996 out of 1,000 simulations showing positive returns. These projections, while optimistic, should be approached with caution. Monte Carlo simulations use historical data to forecast future performance, meaning they cannot account for unforeseen market changes or black swan events. Diversification beyond high-growth tech stocks could mitigate some risks not captured in these simulations.

Asset classes Info

  • Stocks
    100%

The portfolio's asset allocation is entirely in stocks, with no exposure to other asset classes such as bonds or real estate. This singular focus on equities, particularly within the tech sector, amplifies both potential returns and volatility. Introducing a variety of asset classes could enhance diversification, potentially reducing volatility without significantly compromising growth prospects.

Sectors Info

  • Technology
    61%
  • Telecommunications
    8%
  • Consumer Discretionary
    7%
  • Financials
    7%
  • Health Care
    5%
  • Industrials
    4%
  • Consumer Staples
    3%
  • Energy
    1%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

With 61% of the portfolio invested in technology, followed by smaller allocations to communication services, consumer cyclicals, and financial services, the sectoral allocation underscores a strong conviction in tech-led growth. However, this concentration increases susceptibility to sector-specific risks. Diversifying across a broader range of sectors could provide a buffer against tech-specific downturns, potentially leading to more stable long-term returns.

Regions Info

  • North America
    96%
  • Asia Developed
    2%
  • Europe Developed
    2%

The geographic distribution is heavily skewed towards North America (96%), with minimal exposure to developed markets in Asia and Europe. This concentration in the U.S. market leverages the growth of American tech giants but also exposes the portfolio to regional economic and political risks. Expanding geographic diversification, especially into emerging markets, could tap into growth opportunities outside the U.S. and reduce geographic risk.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    36%
  • Mid-cap
    13%
  • Small-cap
    2%

The portfolio's market capitalization breakdown shows a preference for mega (48%) and big (36%) cap stocks, indicating a focus on established companies. While this can offer stability and potential dividends, the relatively small allocation to medium, small, and micro-cap stocks limits exposure to higher-growth potential firms. Increasing the variety of market caps could enhance return potential while spreading risk.

Redundant positions Info

  • Invesco NASDAQ 100 ETF
    Vanguard Information Technology Index Fund ETF Shares
    High correlation

The high correlation between the Invesco NASDAQ 100 ETF and Vanguard Information Technology Index Fund ETF Shares suggests redundancy, as they likely hold many of the same stocks. This redundancy does not contribute to diversification and may unnecessarily concentrate risk. Rebalancing to reduce overlap could enhance portfolio efficiency by lowering risk without sacrificing potential returns.

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 composition suggests room for optimization, particularly by addressing the high correlation between certain assets. Utilizing the Efficient Frontier could identify an asset allocation that offers a better risk-return trade-off. However, it's important to remember that this optimization is based on historical data, which may not fully predict future performance. Diversifying beyond highly correlated tech ETFs could improve the portfolio's efficiency by balancing risk and return more effectively.

Dividends Info

  • iShares Core S&P 500 ETF 1.10%
  • Invesco NASDAQ 100 ETF 0.50%
  • VanEck Semiconductor ETF 0.30%
  • Vanguard Information Technology Index Fund ETF Shares 0.40%
  • Weighted yield (per year) 0.74%

The portfolio's overall dividend yield of 0.74% reflects a focus on growth over income. Given the growth orientation and tech sector concentration, this yield is understandable but limits income generation. Investors seeking both growth and income might consider diversifying into assets or sectors with higher dividend yields.

Ongoing product costs Info

  • iShares Core S&P 500 ETF 0.03%
  • Invesco NASDAQ 100 ETF 0.15%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Weighted costs total (per year) 0.12%

With a total expense ratio (TER) of 0.12%, the portfolio benefits from relatively low costs, which is commendable. Keeping costs low is crucial for enhancing long-term returns, as even small differences in fees can compound significantly over time. The selection of low-cost ETFs aligns well with best practices for cost-efficient investing.

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