Balanced and diversified portfolio with a strong focus on growth and technology sectors

Report created on Nov 9, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is structured around a mix of target-date funds, broad market ETFs, and sector-specific ETFs, with a heavy emphasis on equities (93%) and a minor allocation to bonds (6%) and cash (1%). The largest holding is the Fidelity Freedom 2040 Fund, which alone constitutes 35% of the portfolio, signaling a long-term retirement focus. The inclusion of broad market ETFs like the Vanguard Total World Stock Index and S&P 500 ETFs provides a solid foundation, while specific ETFs targeting the NASDAQ 100 and U.S. Large-Cap Growth add a growth-oriented tilt.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 15.68%, with a maximum drawdown of -23.84%. This performance suggests a strong growth trajectory, albeit with notable volatility. The days contributing to 90% of returns being concentrated in just 25 days highlights the impact of short-term significant gains, which is characteristic of growth-focused investments. This historical performance, while impressive, should be viewed with the understanding that past results do not guarantee future returns.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of potential future outcomes, suggest a wide variance in potential performance, with a median increase of 685.9%. It's crucial to note that while these projections provide a spectrum of possible future states, they are inherently uncertain and rely on past market behavior, which may not predict future trends accurately.

Asset classes Info

  • Stocks
    93%
  • Bonds
    6%
  • Cash
    1%

The heavy allocation to stocks at 93% positions the portfolio for potential high growth but also exposes it to significant market volatility. The minimal bond and cash holdings offer limited cushion against stock market downturns. This asset class distribution is typical for investors with a higher risk tolerance and a longer investment horizon, aiming for capital appreciation over immediate income or capital preservation.

Sectors Info

  • Technology
    29%
  • Financials
    17%
  • Industrials
    11%
  • Telecommunications
    10%
  • Health Care
    8%
  • Consumer Discretionary
    7%
  • Consumer Staples
    5%
  • Consumer Discretionary
    4%
  • Basic Materials
    3%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocations reveal a strong preference for technology (29%), financial services (17%), and industrials (11%), with technology's large share reflecting a bet on continued innovation and digital transformation. However, this concentration also increases susceptibility to sector-specific downturns, such as regulatory changes or shifts in consumer behavior impacting tech stocks disproportionately.

Regions Info

  • North America
    73%
  • Europe Developed
    13%
  • Asia Emerging
    5%
  • Japan
    4%
  • Asia Developed
    3%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Australasia
    1%

Geographic exposure is predominantly North American (73%), with smaller allocations to developed Europe (13%) and emerging Asian markets (5%). This distribution suggests a confidence in the stability and growth potential of North American markets while still capturing some international diversification benefits. However, the underrepresentation of emerging markets may limit exposure to higher growth opportunities outside of developed economies.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    29%
  • Mid-cap
    15%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown shows a bias towards mega (43%) and big (29%) cap stocks, indicating a preference for established, large companies likely to offer stability and consistent returns. However, this focus may reduce the portfolio's potential for explosive growth from smaller, more agile companies that could emerge as tomorrow's market leaders.

Redundant positions Info

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

The high correlation observed between certain ETFs, such as the Schwab U.S. Large-Cap Growth and Invesco NASDAQ 100 ETFs, suggests redundancy, potentially limiting the diversification benefits of holding both. Similarly, the Vanguard S&P 500 and Total World Stock Index ETFs overlap significantly, indicating an area where the portfolio could be streamlined to reduce redundancy without sacrificing exposure.

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 identified asset correlations to reduce overlap. By reallocating from highly correlated assets to those offering genuine diversification benefits, the portfolio can achieve a more efficient risk-return profile. This step is essential for ensuring that each component of the portfolio contributes to overall performance without unnecessarily duplicating exposure.

Dividends Info

  • FIDELITY FREEDOM 2040 FUND FIDELITY FREEDOM 2040 FUND 7.30%
  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Invesco S&P 500® Momentum ETF 0.70%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 3.42%

The overall dividend yield of 3.42% strikes a balance between generating income and reinvesting for growth. The Fidelity Freedom 2040 Fund's higher yield contributes significantly to this average, providing a steady income stream that can be reinvested to compound growth, while the lower yields from growth-oriented ETFs reflect their focus on capital appreciation.

Ongoing product costs Info

  • FIDELITY FREEDOM 2040 FUND FIDELITY FREEDOM 2040 FUND 0.66%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.27%

With a total Expense Ratio (TER) of 0.27%, the portfolio is efficiently managed in terms of costs, which is crucial for maximizing long-term returns. Lower costs ensure that a higher portion of investment returns is retained by the investor, compounding over time to significantly enhance portfolio growth.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey