High-growth tech-centric portfolio with significant exposure to large-cap stocks

Report created on Jun 8, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is highly concentrated, with 83% allocated to the Invesco QQQ Trust and 17% to the Vanguard S&P 500 ETF. This structure shows a strong focus on the technology sector and large-cap stocks, given QQQ's tech-heavy composition. Such a high concentration in a single ETF, especially one that is sector-specific, indicates a less diversified approach, which can increase volatility and risk.

Growth Info

Historically, this portfolio has exhibited a Compound Annual Growth Rate (CAGR) of 18.27%, with a maximum drawdown of -33.77%. These figures suggest a high-growth trajectory, albeit with significant volatility. The days contributing most to returns highlight the portfolio's susceptibility to short-term market movements, emphasizing the growth-focused, high-risk nature of this investment strategy.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. However, it's crucial to remember that such simulations have limitations and cannot predict future market conditions accurately. The high percentile outcomes suggest potential for substantial growth, aligning with the portfolio's aggressive growth profile.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, with no allocation to other asset classes like bonds or real estate. This lack of diversification across asset classes can increase risk, as the portfolio's performance is solely dependent on the stock market's fluctuations.

Sectors Info

  • Technology
    49%
  • Telecommunications
    15%
  • Consumer Discretionary
    13%
  • Health Care
    6%
  • Consumer Staples
    6%
  • Industrials
    4%
  • Financials
    3%
  • Utilities
    2%
  • Basic Materials
    1%
  • Energy
    1%
  • Real Estate
    1%

Sector allocation is heavily weighted towards technology (49%), followed by communication services and consumer cyclicals. This concentration in high-growth sectors can lead to higher volatility, especially during market downturns or when these sectors underperform. However, it also offers the potential for significant returns during market upswings.

Regions Info

  • North America
    98%
  • Europe Developed
    1%
  • Latin America
    1%

Geographic allocation is predominantly in North America (98%), with minimal exposure to other regions. This concentration in a single geographic region can increase risk from region-specific economic or political events. A more globally diversified portfolio might reduce such risks.

Market capitalization Info

  • Mega-cap
    53%
  • Large-cap
    34%
  • Mid-cap
    12%

The portfolio's focus on mega (53%) and big (34%) cap stocks suggests a preference for established, large companies, which can offer stability and potential for growth. However, the absence of small-cap investments may limit opportunities for higher returns that these companies can sometimes offer.

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.

Given the portfolio's current asset allocation and focus, there's room to optimize for a better risk-return ratio using the Efficient Frontier concept. This might involve diversifying across more asset classes or sectors to reduce volatility while maintaining the potential for high returns.

Dividends Info

  • Invesco QQQ Trust 0.60%
  • Vanguard S&P 500 ETF 1.30%
  • Weighted yield (per year) 0.72%

The portfolio's dividend yield is relatively low at 0.72%, reflecting its growth-focused strategy over income generation. Investors prioritizing long-term capital appreciation over immediate income may find this acceptable, although a diversified income stream can offer benefits during market volatility.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.17%

The total expense ratio (TER) of 0.17% is modest, helping to preserve returns over time. Lower costs are crucial for long-term investment success, especially in growth-oriented portfolios where the compounding effect can significantly impact overall performance.

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