Growth-focused portfolio with a strong tilt towards technology and healthcare sectors

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio suits an investor with a growth-oriented mindset, willing to accept moderate to high risk for the potential of higher returns. Ideal for those with a longer-term investment horizon, it caters to individuals comfortable with market fluctuations and sector concentrations. The inclusion of a cryptocurrency asset indicates a tolerance for speculative investments, aligning with those seeking to maximize growth potential.

Positions

  • Vanguard Total Stock Market Index Fund ETF Shares
    VTI - US9229087690
    50.00%
  • Invesco S&P 500® Momentum ETF
    SPMO - US46138E3392
    35.00%
  • Health Care Select Sector SPDR® Fund
    XLV - US81369Y2090
    10.00%
  • iShares Bitcoin Trust
    IBIT - US46438F1012
    5.00%

This portfolio predominantly invests in ETFs, with a significant 50% allocation to a broad stock market index, 35% to a momentum strategy within the S&P 500, 10% in healthcare, and a speculative 5% in a Bitcoin trust. The heavy reliance on ETFs simplifies management and diversification but leans heavily towards large-cap stocks, particularly in technology and healthcare sectors. This composition reflects a growth-oriented strategy with a moderate to high-risk tolerance, given the inclusion of a cryptocurrency asset.

Warning Historical data is limited for this portfolio, which reduces the confidence in the calculated values.

Growth Info

The portfolio has exhibited a remarkable Compound Annual Growth Rate (CAGR) of 27.83%, with a maximum drawdown of -18.73%. The days contributing 90% of returns are notably few, indicating that a small number of days have driven the portfolio's performance significantly. This performance suggests the portfolio's growth strategy has paid off in the past, but it's important to note that such high returns can come with considerable risk and volatility.

Warning Due to limited historical data, this may show extreme values that are not realistic.

Projection Info

Monte Carlo simulations project a wide range of outcomes for this portfolio, with the 50th percentile suggesting a potential 7,124.3% return. While this tool helps visualize possible future scenarios by using historical data, it's essential to remember that these projections are not guarantees. The simulations indicate a bullish outlook but underscore the high-risk nature of the portfolio's strategy.

Asset classes Info

  • Stocks
    95%
  • Other
    5%
  • Cash
    0%

The portfolio is almost entirely invested in stocks (95%), with a small allocation to other assets (5%), presumably the Bitcoin trust. This heavy stock concentration enhances growth potential but also increases volatility and risk. A more diversified asset class allocation, including fixed income or real estate, could provide a buffer against stock market fluctuations.

Sectors Info

  • Technology
    24%
  • Health Care
    16%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    1%

Sector allocation is focused on technology and healthcare, making up 40% of the portfolio. This concentration in high-growth sectors has likely contributed to the portfolio's strong performance but also increases susceptibility to sector-specific downturns. Broadening sector exposure could help mitigate this risk.

Regions Info

  • North America
    95%
  • Europe Developed
    0%
  • Asia Developed
    0%
  • Latin America
    0%
  • Asia Emerging
    0%

With 95% of assets in North America, the portfolio lacks global diversification, which can be a double-edged sword. While focusing on the U.S. market has historically provided strong returns, it also exposes the portfolio to regional economic and political risks. Incorporating international equity could offer additional growth opportunities and risk mitigation.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    34%
  • Mid-cap
    15%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown shows a preference for mega and big-cap stocks, which tend to be more stable than smaller companies but may offer lower growth potential. Including a greater mix of mid, small, and micro-cap stocks could enhance growth prospects and diversification.

Dividends Info

  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Health Care Select Sector SPDR® Fund 1.80%
  • Weighted yield (per year) 0.99%

The portfolio's average dividend yield stands at 0.99%, which is relatively modest. This yield reflects the growth-focused nature of the portfolio, as growth stocks typically reinvest earnings rather than pay dividends. Investors seeking income might consider a higher allocation to assets with higher dividend yields.

Ongoing product costs Info

  • iShares Bitcoin Trust 0.12%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Health Care Select Sector SPDR® Fund 0.09%
  • Weighted costs total (per year) 0.08%

With an average Total Expense Ratio (TER) of 0.08%, the portfolio is cost-efficient, which is beneficial for long-term growth. Lower costs mean more of the investment's return is kept by the investor, a crucial factor in compounding growth 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.

The current allocation shows a strong growth orientation but could benefit from optimization towards the Efficient Frontier, which aims for the best possible risk-return balance. Adjusting allocations to include a wider variety of asset classes and sectors could improve the portfolio's efficiency, potentially offering higher returns for the same level of risk.

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.