Growth-focused portfolio with high concentration in tech and major US companies

Report created on Jul 23, 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 ETFs and large-cap tech stocks, with significant positions in the Vanguard S&P 500 ETF and Invesco NASDAQ 100 ETF, complemented by direct investments in NVIDIA, Alphabet, and Apple. The concentration in a few high-performing sectors and stocks, while beneficial during bullish market phases, presents a risk of volatility and underperformance if these sectors falter. The low diversity score indicates a concentrated risk profile, potentially exposing the portfolio to significant fluctuations.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 22.74% and a substantial maximum drawdown, the portfolio has experienced significant volatility but also impressive growth. The days contributing most to returns highlight the portfolio's dependency on specific market events. While past performance is promising, it's crucial to remember that it does not guarantee future results, and the high growth comes with increased risk.

Projection Info

Monte Carlo simulations, using historical data to forecast future outcomes, suggest a wide range of potential portfolio values. The majority of simulations predict positive returns, yet the spread from the 5th to the 67th percentile underscores the high uncertainty and risk involved. These projections offer a glimpse into potential futures but are inherently limited by past market behavior.

Asset classes Info

  • Stocks
    100%

The portfolio's assets are entirely in stocks, lacking diversification across different asset classes like bonds or real estate. This singular focus on equities, particularly within specific sectors, amplifies both potential returns and risks. Diversifying across asset classes can reduce volatility without necessarily sacrificing returns, as different assets react differently to market conditions.

Sectors Info

  • Technology
    44%
  • Telecommunications
    19%
  • Consumer Discretionary
    9%
  • Financials
    8%
  • Health Care
    6%
  • Industrials
    5%
  • Consumer Staples
    4%
  • Energy
    2%
  • Utilities
    2%
  • Basic Materials
    1%
  • Real Estate
    1%

The sectoral allocation reveals a heavy tilt towards technology and communication services, which have been outperformers in recent years. However, this concentration increases the portfolio's sensitivity to these sectors' downturns. Expanding into underrepresented sectors could provide a buffer during tech or communication services slumps.

Regions Info

  • North America
    99%

Almost the entire portfolio is invested in North American assets, particularly U.S.-based companies. This geographic concentration enhances exposure to the U.S. economy's fortunes but limits potential gains from global diversification. Including more international exposure could mitigate region-specific risks and tap into growth opportunities elsewhere.

Market capitalization Info

  • Mega-cap
    62%
  • Large-cap
    25%
  • Mid-cap
    12%
  • Small-cap
    1%

The focus on mega and large-cap companies helps stabilize the portfolio through exposure to established, financially robust companies. However, this emphasis also means missing out on the potentially higher growth rates of mid and small-cap companies, which can offer diversification benefits and outsized returns in different market cycles.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Invesco NASDAQ 100 ETF
    High correlation
  • Vanguard S&P 500 ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation

The high correlation between certain ETFs and individual stocks indicates overlapping exposures, which diminishes diversification benefits. For instance, the Vanguard S&P 500 ETF and the Vanguard Total Stock Market Index Fund ETF Shares likely hold similar positions, as do the Schwab U.S. Large-Cap Growth ETF and the Invesco NASDAQ 100 ETF. Streamlining these holdings could improve the portfolio's efficiency.

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.

Optimizing the portfolio involves addressing the high correlation among holdings to reduce redundancy and enhance diversification. Removing overlapping investments could lower risk without sacrificing potential returns. Adjusting the allocation to include a broader range of sectors, asset classes, and geographies could further optimize the risk-return profile.

Dividends Info

  • Apple Inc 0.50%
  • Alphabet Inc Class A 0.40%
  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 0.78%

The portfolio's dividend yield contributes to its total return, offering a modest income stream in addition to capital appreciation. While not the portfolio's focus, dividends provide a cushion during market downturns. The yields from the various holdings, though not high, add a layer of return that can compound over time.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.04%

The portfolio benefits from low overall costs, with Total Expense Ratios (TERs) for the included ETFs being competitively low. Reducing costs is crucial for enhancing long-term returns, as even small differences in fees can significantly impact compounded returns over time. This cost efficiency is a solid foundation for the portfolio's performance.

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