A tech-focused portfolio with high exposure to US markets and low international diversification

Report created on Sep 11, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards US equities, with 90% of its allocation in two major ETFs tracking the S&P 500 and NASDAQ 100, and only a 10% allocation towards international stocks. This composition suggests a strong focus on large-cap and technology-oriented companies, given the sectoral breakdown showing a 36% allocation to technology. The moderate diversification score reflects a concentrated approach, primarily in US markets and specific sectors, which may limit exposure to global growth opportunities and sectoral balance.

Growth Info

Historically, the portfolio has shown a strong Compound Annual Growth Rate (CAGR) of 15.41%, with a maximum drawdown of -26.75%. These figures indicate robust growth but also highlight periods of significant volatility, particularly given the tech-heavy focus which can be susceptible to market shifts. The days contributing most to returns suggest that gains are heavily reliant on strong market rallies, which may not always be predictable.

Projection Info

Monte Carlo simulations forecast a wide range of outcomes, with a median projected growth of 459.4% over the simulation period. This optimistic median, alongside a high count of simulations with positive returns, underscores potential for substantial growth. However, the broad spread from the 5th to 67th percentiles indicates significant uncertainty, underscoring the portfolio's risk profile and the importance of understanding that past performance may not reliably predict future results.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no presence in other asset classes like bonds or commodities. This singular focus enhances growth potential but also increases susceptibility to market volatility. Diversifying across different asset classes can provide a buffer during stock market downturns, offering a more stable return profile over the long term.

Sectors Info

  • Technology
    36%
  • Financials
    12%
  • Consumer Discretionary
    11%
  • Telecommunications
    11%
  • Health Care
    8%
  • Industrials
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

The sectoral allocation underscores a strong emphasis on technology, financial services, and consumer cyclicals, which are sectors known for their growth potential. However, this concentration also exposes the portfolio to sector-specific risks, such as regulatory changes or economic cycles affecting these industries more acutely than others.

Regions Info

  • North America
    90%
  • Europe Developed
    4%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%

With 90% of assets in North America and minimal exposure to emerging and developed markets outside the US, the portfolio's geographic distribution is heavily skewed. This US-centric approach has historically provided strong returns but may miss out on growth opportunities in other regions, especially in emerging markets that could offer diversification benefits and exposure to different economic growth drivers.

Market capitalization Info

  • Mega-cap
    49%
  • Large-cap
    34%
  • Mid-cap
    16%
  • Small-cap
    1%

The portfolio's emphasis on mega and big-cap stocks aligns with its focus on stability and growth, as these companies often have more established business models. However, the minimal exposure to small and micro-cap stocks limits potential high-growth opportunities in emerging companies and sectors, which could offer significant returns albeit with higher risk.

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 configuration, while strong in growth potential, might not be optimized for risk-adjusted returns, as indicated by its heavy tech orientation and US market concentration. Employing the Efficient Frontier concept could reveal opportunities to adjust asset allocation for a more favorable risk-return balance without necessarily compromising growth objectives.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.21%

The overall dividend yield of 1.21% indicates a modest contribution to total returns from dividends. Given the growth orientation of the portfolio, this yield level is understandable; however, investors seeking income alongside growth might consider a slightly higher allocation to assets with higher dividend yields.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.06%

With a total expense ratio (TER) of 0.06%, the portfolio benefits from low costs, which is commendable. Lower costs translate directly to better net returns over time, especially important in a growth-focused portfolio where compounding plays a significant role in wealth accumulation.

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