A growth-focused portfolio with strong tech exposure and global diversification

Report created on Aug 2, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is characterized by an equal-weight strategy across four ETFs, focusing on the NASDAQ 100, U.S. large-cap growth stocks, the total U.S. stock market, and international stocks. This structure indicates a growth-oriented approach with a broad diversification across geographies and sectors. However, the significant overlap between the NASDAQ 100 and U.S. large-cap growth ETFs suggests potential for improved diversification. The portfolio's heavy allocation towards technology and its substantial exposure to North America reflect a bias towards high-growth potential but also imply higher volatility and concentration risk.

Growth Info

The portfolio has achieved a Compound Annual Growth Rate (CAGR) of 14.25%, with a maximum drawdown of -30.57%. These figures suggest a strong historical performance, albeit with significant volatility. The days contributing to 90% of returns being concentrated in just 17.0 days highlight the portfolio's reliance on short, sharp gains, typical of growth-oriented investments. While past performance is impressive, it's essential to remember it doesn't guarantee future results, and such volatility underscores the need for risk tolerance in this investment strategy.

Projection Info

Monte Carlo simulations, using historical data to project future outcomes, suggest a wide range of potential future performances for this portfolio. With 989 out of 1,000 simulations showing positive returns, the analysis forecasts a median increase of 479.2%. However, the significant spread between the 5th and 67th percentiles indicates a high level of uncertainty. These projections are useful for understanding potential outcomes but should be approached with caution as they are based on past data and assumptions that may not hold true.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely invested in stocks (99%), with a minimal cash holding (1%). This allocation underscores the portfolio's growth focus but also its exposure to market volatility. Diversifying across different asset classes, including bonds or real estate, could provide a buffer against stock market downturns and reduce overall volatility without necessarily compromising long-term growth potential.

Sectors Info

  • Technology
    37%
  • Consumer Discretionary
    12%
  • Financials
    11%
  • Telecommunications
    11%
  • Industrials
    8%
  • Health Care
    8%
  • Consumer Staples
    5%
  • Basic Materials
    3%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    2%

With 37% allocated to technology and significant investments in consumer cyclicals, financial services, and communication services, the portfolio is positioned to benefit from growth in these dynamic sectors. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or economic downturns that disproportionately affect these industries. Balancing sector exposures can mitigate these risks while still capturing growth opportunities.

Regions Info

  • North America
    76%
  • Europe Developed
    10%
  • Asia Emerging
    4%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The portfolio's geographic allocation is heavily skewed towards North America (76%), with modest exposures to developed Europe, Asia, and emerging markets. This concentration in developed markets, particularly the U.S., aligns with the portfolio's growth orientation but may limit exposure to emerging market growth opportunities. Increasing diversification into underrepresented regions could enhance returns and reduce geopolitical and currency risks.

Market capitalization Info

  • Mega-cap
    51%
  • Large-cap
    29%
  • Mid-cap
    15%
  • Small-cap
    3%
  • Micro-cap
    1%

The emphasis on mega (51%) and big (29%) cap stocks reflects a preference for established, large-scale companies, which typically offer stability and steady growth. However, the relatively small allocation to medium, small, and micro-cap stocks suggests missed opportunities for higher growth rates these segments can offer. A more balanced market cap distribution could improve the portfolio's growth potential and resilience.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Invesco NASDAQ 100 ETF
    High correlation

The high correlation between the Invesco NASDAQ 100 ETF and the Schwab U.S. Large-Cap Growth ETF indicates redundancy, limiting the diversification benefits of holding both. Reducing overlap by reallocating assets from one of these ETFs into less correlated investments could enhance the portfolio's risk-adjusted returns by broadening exposure to different drivers of 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.

The portfolio's current allocation suggests room for optimization, particularly in reducing overlap between highly correlated assets. By reallocating from redundant positions into less correlated or underrepresented assets, the portfolio can achieve a more efficient risk-return profile. This adjustment aligns with the principles of the Efficient Frontier, aiming to maximize returns for a given level of risk by optimizing asset allocation.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 1.25%

The portfolio's average dividend yield of 1.25% contributes to its total return, with the Vanguard Total International Stock Index Fund ETF Shares offering the highest yield at 2.90%. While dividends are not the primary focus of this growth-oriented portfolio, they provide a passive income stream and can offer some cushion during market downturns. Reinvesting dividends can further compound growth over time.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.07%

With a total Expense Ratio (TER) of 0.07%, the portfolio benefits from low costs, which can significantly enhance long-term returns. This efficiency is especially noteworthy given the broad diversification and growth focus of the portfolio. Maintaining low investment costs is crucial for maximizing net returns, particularly in growth-oriented strategies where compounding plays a significant role.

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