Highly concentrated tech heavy portfolio with leveraged growth tilt and substantial potential volatility

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Aggressive Investors

This setup fits an investor with very high risk tolerance, a long time horizon, and a clear focus on capital growth rather than income or capital preservation. Suitable goals might include aggressively building wealth for distant retirement, funding ambitious future projects, or seeking outsized upside while accepting the possibility of large temporary losses. Emotionally, this kind of investor needs to be able to endure deep drawdowns and extended periods of underperformance without panicking or abandoning the strategy. It tends to suit someone who follows markets closely, understands the nature of volatility, and can maintain discipline through both euphoric tech booms and painful corrections.

Positions

  • Vanguard Information Technology Index Fund ETF Shares
    VGT - US92204A7028
    42.00%
  • ProShares UltraPro QQQ
    TQQQ - US74347X8314
    29.00%
  • Invesco QQQ Trust
    QQQ - US46090E1038
    20.00%
  • Vanguard S&P 500 ETF
    VOO - US9229083632
    9.00%

This portfolio is extremely concentrated in a small set of growth‑oriented index products, with technology and Nasdaq‑style exposure dominating almost everything. Compared with a broad “all market” benchmark that typically holds many sectors and regions, this setup is single‑focused and intentionally aggressive. That kind of focus can amplify returns when growth themes are in favor, but it also magnifies losses when those same areas fall out of favor. Structurally, the holdings overlap a lot in what they own, so diversification benefits are limited. Aligning the structure more closely with a broad benchmark mix can smooth the ride while still keeping a clear growth tilt, especially if exposure is spread across more independent return drivers.

Growth Info

Based on the data, a hypothetical $10,000 invested historically would have grown at about 32.76% per year (CAGR, or Compound Annual Growth Rate, which is like your average “speed” over the whole trip). That’s an outstanding result and far above typical broad market benchmarks over long periods. The trade‑off is a max drawdown of around ‑66.56%, meaning at one point the portfolio would have been cut to roughly one‑third of its peak value. That level of downside is much steeper than standard broad equity indexes. While this history shows the upside of aggressive growth exposure, it also underlines how emotionally and financially demanding such deep pullbacks can be.

Projection Info

The Monte Carlo analysis runs 1,000 simulated future paths using historical return and volatility patterns, like rolling dice many times to see a range of possible outcomes. The median result of about 2,571% growth and an average simulated annual return near 33.71% reflect the powerful historical tailwind of this style. However, the 5th percentile outcome (roughly 117% growth) shows that in more adverse scenarios, gains could be modest relative to the risks taken. All simulations rely on past data, and markets often change regime, especially for fast‑growing segments. Treat these simulations as a rough weather forecast, not a guarantee, and consider whether the wide range of outcomes fits the comfort level with uncertainty and big swings.

Asset classes Info

  • Stocks
    92%
  • Cash
    8%
  • Other
    0%

The portfolio is almost entirely in stocks (about 92%), with a small 8% in cash and nothing material in other asset classes. Compared to diversified benchmarks that typically hold a mix of stocks, bonds, and sometimes alternatives, this is a very equity‑heavy setup. High stock weight boosts long‑term growth potential but leaves the portfolio fully exposed to equity bear markets without the cushioning effect bonds or other stabilizers can provide. The small cash slice can help with short‑term needs but isn’t a real risk offset. Introducing additional asset classes over time can help lower the impact of major drawdowns while still keeping a clearly growth‑oriented profile.

Sectors Info

  • Technology
    71%
  • Telecommunications
    9%
  • Consumer Discretionary
    7%
  • Health Care
    3%
  • Consumer Staples
    3%
  • Industrials
    2%
  • Financials
    2%
  • Utilities
    1%
  • Basic Materials
    1%
  • Energy
    0%
  • Real Estate
    0%

Sector exposure is dominated by technology at around 71%, with smaller slices in communication services, consumer cyclicals, healthcare, and a thin layer in defensive areas like consumer staples and utilities. This aligns closely with growth benchmarks and explains the strong historic returns. It also means performance is heavily tied to how one broad theme—innovative, growth‑driven companies—behaves. Tech‑heavy portfolios can be especially sensitive when interest rates rise or when markets rotate into value and defensive sectors. The current sector mix is well‑positioned for continued innovation‑led growth, but gradually adding more exposure to traditionally steadier areas can help balance the impact of sector‑specific downturns.

Regions Info

  • North America
    98%
  • Europe Developed
    1%
  • Asia Emerging
    0%
  • Latin America
    0%
  • Asia Developed
    0%

Geographically, roughly 98% of exposure is in North America, with only a token allocation to developed Europe and practically nothing elsewhere. That’s even more home‑biased than many standard US benchmarks, which usually include more non‑US companies. A strong US tilt has worked well over the last decade, as US growth and tech names led global markets. Still, this creates concentration risk if the US market or its dominant industries underperform for an extended stretch. Including more international exposure over time can tap into different economic cycles, currency trends, and policy environments, helping smooth returns without needing to reduce overall growth orientation too dramatically.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    26%
  • Mid-cap
    11%
  • Small-cap
    4%
  • Micro-cap
    1%

Most holdings are in mega and large companies (around 72% combined), with some mid‑cap and very limited small and micro‑cap exposure. That profile looks similar to major growth and broad market benchmarks, which tend to be top‑heavy by design. Large, established companies often provide more stability, liquidity, and transparency compared to smaller firms, which can be more volatile and harder to trade in stressed markets. The tilt toward the biggest names has supported strong historical performance, given how well large growth leaders have done. If more diversification is desired, gradually increasing exposure to mid and smaller companies can add different drivers of return, though it will also slightly increase volatility.

Redundant positions Info

  • Invesco QQQ Trust
    Vanguard Information Technology Index Fund ETF Shares
    ProShares UltraPro QQQ
    High correlation

The main ETFs—Invesco QQQ, Vanguard Information Technology, and ProShares UltraPro QQQ—are highly correlated, meaning they tend to move up and down together most of the time. Correlation measures how synchronized assets are; when it’s high, the benefit of holding multiple funds is mostly about implementation, not risk reduction. This explains why drawdowns are so deep: when one falls, they all tend to fall together, especially the leveraged piece. While the overlap has clearly worked during strong growth periods, trimming redundant, highly correlated exposures can free up space for holdings that behave differently, improving the overall risk mix without necessarily sacrificing long‑term return potential.

Dividends Info

  • Invesco QQQ Trust 0.40%
  • ProShares UltraPro QQQ 0.60%
  • Vanguard Information Technology Index Fund ETF Shares 0.40%
  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 0.52%

The overall dividend yield of about 0.52% is quite low compared with income‑focused or broad equity portfolios that often pay more. That’s typical for growth‑oriented strategies, where companies reinvest profits into expansion rather than paying them out as cash. For investors primarily targeting capital appreciation, this can be perfectly fine and even beneficial, since retained earnings can fuel future growth. However, it means the portfolio offers little natural income to cushion market declines or fund spending needs. If reliable cash flow is ever needed—say for retirement withdrawals—incrementally adding higher‑yielding holdings or a dedicated income component would make the portfolio more aligned with that objective.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • ProShares UltraPro QQQ 0.88%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.34%

At a total expense ratio (TER) around 0.34%, costs are generally low, especially given the presence of an actively traded leveraged ETF. Expense ratio is the annual fee charged by funds, and even small differences compound meaningfully over decades. The very low‑cost core ETFs (like the broad US market fund) are a real strength here and help support better long‑term net returns. The leveraged product’s fee is understandably higher and adds drag, particularly during sideways or choppy markets. Reducing reliance on higher‑cost, high‑turnover products over time while keeping the low‑cost core intact can improve overall efficiency without changing the broad growth orientation.

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.

From a risk‑return standpoint, this portfolio sits far out on the aggressive side of the Efficient Frontier, which is the set of portfolios that offer the best possible trade‑off between risk (volatility) and expected return using a given menu of assets. Right now, overlapping, highly correlated holdings limit how “efficient” the mix can be, because adding more of the same type of risk doesn’t significantly improve the risk‑return ratio. Rebalancing toward a cleaner core and potentially mixing in assets that historically move differently could shift the portfolio closer to the efficient boundary. It’s important to remember that “efficient” here means best risk‑return combo, not necessarily maximum growth or maximum diversification.

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