A tech-focused aggressive portfolio with high growth potential and concentrated risk

Report created on Sep 26, 2025

Risk profile Info

6/7
Aggressive
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is heavily concentrated in the technology sector, with significant positions in ARK Innovation ETF, Vanguard Information Technology Index Fund ETF Shares, and Vanguard S&P 500 ETF, alongside a notable stake in Palantir Technologies Inc. This composition suggests a strong belief in the growth potential of the tech industry and the broader market, as reflected by the S&P 500. However, the heavy concentration in a single sector and limited asset class diversification elevate the portfolio's risk profile, potentially increasing volatility.

Growth Info

With a historical Compound Annual Growth Rate (CAGR) of 22.46% and a maximum drawdown of -49.78%, the portfolio has demonstrated substantial growth potential albeit with significant volatility. The days contributing 90% of returns being so few indicate that the portfolio's performance is highly reliant on specific periods of exceptional gains. This characteristic underscores the importance of timing in investments but also highlights the risk of sharp downturns.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 2,571.9%, signaling strong growth potential. However, the broad spread between the 5th and 67th percentiles (49.4% to 5,218.7%) reflects considerable uncertainty and risk. While the majority of simulations predict positive returns, the variability underscores the portfolio's aggressive nature and the need for careful monitoring.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, eschewing bonds, cash, or alternative investments. This singular focus on equities maximizes growth potential but also increases susceptibility to market volatility. Diversification across asset classes could provide a buffer against downturns in the stock market, potentially smoothing out returns over time.

Sectors Info

  • Technology
    57%
  • Health Care
    9%
  • Financials
    9%
  • Telecommunications
    8%
  • Consumer Discretionary
    8%
  • Industrials
    4%
  • Consumer Staples
    2%
  • Energy
    1%
  • Utilities
    1%
  • Real Estate
    1%

With 57% allocated to technology, the portfolio is heavily skewed towards a sector known for its high growth but also for its volatility. The remaining allocations to healthcare, financial services, and other sectors provide some diversification, but the overwhelming emphasis on tech exposes the portfolio to sector-specific risks, such as regulatory changes or market sentiment shifts.

Regions Info

  • North America
    98%
  • Europe Developed
    2%

The geographic allocation is almost entirely focused on North America (98%), with minimal exposure to developed Europe and no presence in emerging markets or Asia-Pacific. This concentration in a single region, while potentially capitalizing on the growth of the US market, limits global diversification and exposure to potential growth in other parts of the world.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    25%
  • Mid-cap
    17%
  • Small-cap
    7%
  • Micro-cap
    4%

The portfolio's allocation leans heavily towards mega- and large-cap stocks, which typically offer stability and liquidity but may have lower growth potential compared to smaller companies. The presence of medium, small, and micro-cap stocks adds some growth potential but also increases risk.

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 current portfolio's expected return is below the optimal level suggested by the Efficient Frontier analysis, indicating that returns could potentially be increased without assuming additional risk. Adjusting the asset allocation to achieve a more efficient risk-return balance could enhance the portfolio's performance, aligning it more closely with the investor's aggressive risk tolerance while seeking to maximize returns.

Dividends Info

  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 0.48%

The overall dividend yield of the portfolio is relatively low, reflecting its focus on growth rather than income. For investors prioritizing capital appreciation over dividend income, this allocation strategy is appropriate. However, incorporating dividend-paying assets could provide a steady income stream and potentially reduce volatility.

Ongoing product costs Info

  • ARK Innovation ETF 0.75%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.26%

The portfolio's total expense ratio (TER) is modest, largely due to the low costs associated with the Vanguard ETFs. The higher cost of the ARK Innovation ETF is a consideration, but it's justified if the ETF continues to deliver high returns. Keeping costs low is crucial for enhancing long-term returns, and this portfolio balances cost with growth potential effectively.

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