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Growth-oriented portfolio with high tech exposure and low diversification

Report created on Sep 22, 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 weighted towards equities, with a significant focus on technology and large-cap stocks. The allocation includes several ETFs that overlap in their holdings, particularly within the tech sector and large-cap US equities, suggesting a concentrated risk in these areas. While such concentration can amplify returns in favorable market conditions, it may also increase volatility and risk during downturns. The portfolio's diversification is low, as indicated by its diversification score, with a heavy emphasis on North American stocks and minimal exposure to other geographies or asset classes.

Growth Info

Historically, this portfolio has delivered a Compound Annual Growth Rate (CAGR) of 13.16%, with a maximum drawdown of -27.23%. These figures suggest that the portfolio has experienced significant volatility but has also provided strong returns over time. The days contributing to 90% of returns being concentrated in such a small number highlight the portfolio's reliance on short, strong market rallies, typical of growth-focused investments. While past performance is promising, investors should be aware that such returns may not be sustainable in different market conditions.

Projection Info

Using Monte Carlo simulation, a range of potential future outcomes has been projected, showing a wide variance in possible returns. This method, which forecasts future performance based on historical data, suggests that while the portfolio has a high likelihood of positive returns, the range between the lower and upper percentiles is substantial. This underscores the portfolio's risk level but also its potential for high rewards. However, it's crucial to remember that these projections are hypothetical and cannot guarantee future results.

Asset classes Info

  • Stocks
    97%

The portfolio's asset allocation is heavily skewed towards stocks (97%), with a particular emphasis on the technology sector. This concentration in equities, especially within a specific sector, increases the portfolio's sensitivity to market fluctuations. While such an allocation can offer significant growth potential, it also carries a higher risk level, especially without the balance of other asset classes like bonds or commodities (beyond the minimal gold exposure) to mitigate volatility during market downturns.

Sectors Info

  • Technology
    38%
  • Consumer Discretionary
    10%
  • Telecommunications
    10%
  • Financials
    10%
  • Health Care
    8%
  • Industrials
    7%
  • Consumer Staples
    5%
  • Real Estate
    4%
  • Energy
    3%
  • Utilities
    2%
  • Basic Materials
    1%

The sector allocation reveals a strong focus on technology, consumer cyclicals, and communication services, which are sectors known for their high growth potential. However, this concentration also exposes the portfolio to sector-specific risks, such as regulatory changes or shifts in consumer behavior. Diversifying across a broader range of sectors could help reduce volatility and provide more stable returns over time, especially in varying economic conditions.

Regions Info

  • North America
    95%
  • Europe Developed
    1%

With 95% of assets allocated to North America, the portfolio's geographic exposure is highly concentrated. This focus may limit potential gains from emerging markets or developed markets outside of North America. Expanding geographic diversification could reduce the portfolio's vulnerability to region-specific economic downturns and capitalize on growth opportunities in other parts of the world.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    31%
  • Mid-cap
    17%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's market capitalization exposure is tilted towards mega and big-cap stocks, which typically offer stability and steady growth. However, this focus may limit potential higher returns from medium, small, or micro-cap stocks, which can offer significant growth opportunities, albeit with higher volatility. Incorporating a broader range of market caps could enhance diversification and potential for higher returns, balancing the portfolio's risk and reward.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard Information Technology Index Fund ETF Shares
    Vanguard Total Stock Market Index Fund ETF Shares
    Invesco QQQ Trust
    Vanguard S&P 500 ETF
    High correlation

The high correlation among the portfolio's core holdings, especially within the technology sector and large-cap ETFs, limits its diversification benefits. During market downturns, these assets are likely to move in tandem, increasing the portfolio's risk. Diversifying into less correlated assets or sectors could help mitigate this risk, providing a smoother return profile over time.

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.

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The current portfolio, while growth-oriented, could benefit from optimization to improve its risk-return profile. The recommendation to reduce overlapping assets and increase diversification could lead to a more efficient portfolio, potentially increasing the expected return to 18.03% without proportionately raising risk. This adjustment would align the portfolio more closely with the Efficient Frontier, where the risk-return ratio is optimized.

Dividends Info

  • Invesco QQQ Trust 0.50%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Information Technology Index Fund ETF Shares 0.40%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • WisdomTree New Economy Real Estate ETF 1.80%
  • Weighted yield (per year) 1.04%

The portfolio's dividend yield stands at approximately 1.04%, with individual ETFs offering yields ranging from 0.40% to 3.80%. While dividends contribute to the portfolio's total return, the focus on growth-oriented ETFs means dividend income is not a primary objective. Investors seeking income alongside growth might consider reallocating a portion towards higher-yielding assets or sectors.

Ongoing product costs Info

  • iShares® Gold Trust Micro 0.09%
  • Invesco QQQ Trust 0.20%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • WisdomTree New Economy Real Estate ETF 0.58%
  • Weighted costs total (per year) 0.09%

The portfolio's costs are relatively low, with a total Expense Ratio (TER) of 0.09%. This efficient cost structure supports better long-term performance by minimizing the drag on returns. Keeping costs low is crucial for maximizing investment growth, especially in a growth-focused portfolio where the compounding effect plays a significant role.

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