Growth-focused portfolio with high tech exposure and low diversification

Report created on Aug 12, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

Your portfolio is composed entirely of ETFs, heavily weighted towards the technology sector and large-cap stocks. This concentration indicates a strong growth orientation but comes with low diversification across sectors and geographies. The significant allocations to the Vanguard Total Stock Market Index Fund ETF Shares and tech-centric ETFs like the Invesco NASDAQ 100 and Schwab U.S. Large-Cap Growth ETFs suggest a bullish outlook on the US market, particularly in technology and large-cap companies.

Growth Info

With a historical Compound Annual Growth Rate (CAGR) of 16.70%, your portfolio has demonstrated strong performance. This is reflective of the robust growth in the technology sector and large-cap stocks over the review period. However, the maximum drawdown of -27.81% signals potential volatility, largely due to the concentrated exposure to high-growth areas that can be sensitive to market shifts.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median simulation suggesting significant growth. This indicates potential for high returns but also underscores the risk associated with the portfolio's lack of diversification. While the simulations are promising, it's important to remember they are based on historical data and cannot guarantee future performance.

Asset classes Info

  • Stocks
    100%

Your portfolio is entirely invested in stocks, with no allocation to bonds, real estate, or other asset classes. This singular focus on equities, particularly within a specific market segment, enhances growth potential but also increases susceptibility to market volatility. Diversifying across asset classes could reduce risk without necessarily compromising long-term growth potential.

Sectors Info

  • Technology
    38%
  • Telecommunications
    12%
  • Consumer Discretionary
    12%
  • Financials
    11%
  • Industrials
    7%
  • Health Care
    7%
  • Consumer Staples
    5%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    1%
  • Basic Materials
    1%

The heavy allocation to technology, alongside significant investments in communication services and consumer cyclicals, positions the portfolio for growth. However, this sector concentration can lead to higher volatility, especially during market downturns or sector-specific shocks. Considering a broader sectoral coverage could mitigate some of these risks.

Regions Info

  • North America
    99%

With 99% of assets allocated to North America, your portfolio lacks international exposure. This geographic concentration increases risk related to regional economic and political events. Expanding into international markets, especially emerging economies, could provide growth opportunities and risk diversification.

Market capitalization Info

  • Mega-cap
    51%
  • Large-cap
    30%
  • Mid-cap
    15%
  • Small-cap
    3%
  • Micro-cap
    1%

The focus on mega and large-cap stocks aligns with the portfolio's growth profile but limits exposure to the potentially higher returns of mid and small-cap stocks. While larger companies tend to be more stable, diversifying into smaller caps could enhance returns and provide balance.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Invesco NASDAQ 100 ETF
    High correlation

The high correlation between the Schwab U.S. Large-Cap Growth ETF and Invesco NASDAQ 100 ETF indicates overlapping investments, reducing the effectiveness of diversification. Reducing exposure to similar assets could help minimize risk without significantly affecting the portfolio's growth potential.

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 could benefit from optimization to improve the risk-return profile. Removing highly correlated assets and diversifying across more sectors, geographies, and asset classes would likely enhance performance. This approach would maintain growth potential while reducing vulnerability to market fluctuations.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 0.78%

The overall dividend yield of 0.78% is relatively modest, reflecting the growth-focused nature of your investments. While dividends contribute to total returns, the emphasis here is clearly on capital appreciation. Investors seeking income alongside growth might consider assets with higher yield potential.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.08%

The average total expense ratio (TER) of 0.08% is impressively low, enhancing net returns. Keeping costs minimal is crucial for long-term investment success, especially in a growth-oriented portfolio where compound growth plays a significant role.

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