High-growth tech-centric portfolio with concentrated exposure to top sectors

Report created on Aug 11, 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 concentrated in technology, with significant allocations to three major ETFs: Vanguard S&P 500 ETF, Invesco QQQ Trust, and Vanguard Information Technology Index Fund ETF Shares. Each holding represents approximately a third of the portfolio. This composition indicates a strong focus on growth, primarily through large-cap technology stocks. The diversification within this portfolio is low, as it leans heavily on a single sector and asset class, with minimal geographic and sectoral spread.

Growth Info

The portfolio has experienced a Compound Annual Growth Rate (CAGR) of 19.15%, with a maximum drawdown of -32.54%. This performance suggests high volatility but also significant growth potential. The days contributing to 90% of returns being limited to 39 indicates that the portfolio's gains are concentrated in short, sharp bursts, typical of high-growth tech stocks. This pattern underscores the risk and reward nature of this investment strategy, which may not suit all investors.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential future outcomes, suggest a wide range of possible future values for this portfolio. With a median projected increase of 1,024.9% and 999 out of 1,000 simulations showing positive returns, the forward-looking scenario appears optimistic. However, it's crucial to remember that such projections are speculative and depend heavily on past market behaviors, which are not guaranteed to repeat.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no presence in other asset classes like bonds or real estate. This allocation supports its growth profile but increases susceptibility to market volatility. Diversifying across different asset classes can help mitigate risk and smooth out returns over time, especially during stock market downturns.

Sectors Info

  • Technology
    62%
  • Telecommunications
    9%
  • Consumer Discretionary
    8%
  • Financials
    5%
  • Health Care
    5%
  • Industrials
    4%
  • Consumer Staples
    4%
  • Utilities
    1%
  • Energy
    1%
  • Basic Materials
    1%
  • Real Estate
    1%

With 62% of the portfolio in technology, followed by smaller allocations to communication services, consumer cyclicals, and other sectors, the sectoral distribution underscores a bet on tech-led growth. While this has historically been a lucrative strategy, it also exposes the portfolio to sector-specific risks, such as regulatory changes or shifts in consumer technology preferences.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

The geographic allocation is heavily skewed towards North America (99%), with a nominal exposure to developed Europe. This concentration in the US market, particularly in tech, has been beneficial in the past decade but limits global diversification. Expanding geographic exposure could reduce potential risks associated with economic or political instability in a single region.

Market capitalization Info

  • Mega-cap
    52%
  • Large-cap
    30%
  • Mid-cap
    13%
  • Small-cap
    3%
  • Micro-cap
    1%

The focus on mega (52%) and big (30%) cap stocks aligns with the portfolio's growth and risk profile, offering stability and potential for significant returns. However, the limited exposure to medium, small, and micro-cap stocks restricts opportunities for higher growth rates that these smaller companies can offer, albeit with increased risk.

Redundant positions Info

  • Vanguard Information Technology Index Fund ETF Shares
    Invesco QQQ Trust
    High correlation

The high correlation between the Vanguard Information Technology Index Fund ETF Shares and Invesco QQQ Trust indicates overlapping investments, reducing the diversification benefits. Diversification across uncorrelated assets can help manage risk more effectively, as it ensures that not all investments are likely to move in the same direction simultaneously.

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 risk-return profile could benefit from diversification beyond highly correlated tech assets. Utilizing the Efficient Frontier concept to balance risk and return more effectively could enhance long-term outcomes. This might involve reallocating some investments to different sectors or asset classes to reduce volatility while maintaining growth potential.

Dividends Info

  • Invesco QQQ Trust 0.50%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.73%

The portfolio's average dividend yield of 0.73% reflects its growth orientation, as tech companies often reinvest earnings rather than pay out dividends. While dividends contribute to total return, the focus here is clearly on capital appreciation. Investors seeking regular income might consider diversifying into assets with higher yield potential.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.11%

The total expense ratio (TER) of 0.11% is relatively low, which is beneficial for long-term growth as it minimizes the drag on returns. Keeping costs low is crucial in maximizing investment returns, especially in growth-focused portfolios where the compounding effect can significantly amplify the impact of fees over time.

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