A high growth portfolio heavily tilted to semiconductors with strong historical returns and higher risk
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 who is clearly growth‑oriented, comfortable with significant volatility, and focused on long‑term wealth building. They’re likely more excited by innovation and future earnings potential than by steady income, and they can tolerate sharp temporary losses without panicking. A typical horizon might be 10 years or longer, where short‑term drawdowns are acceptable in pursuit of higher eventual value. This kind of investor often tracks themes like semiconductors and advanced technology and is willing to accept that returns may come in bursts, with long stretches of choppiness in between, as part of a high‑octane equity strategy.
Positions
-
VanEck Semiconductor ETF
SMH - US92189F6768 65.00% -
Vanguard S&P 500 ETF
VOO - US9229083632 35.00%
This portfolio is very concentrated: about two thirds in a semiconductor-focused ETF and the rest in a broad large‑cap US fund. That means 100% stocks, with a big tilt to one powerful but cyclical industry. This setup can turbocharge growth when markets and chips are strong, but it also magnifies swings when that theme cools off. Compared with a typical growth benchmark, this is more narrowly focused and more aggressive. Someone using this mix could consider whether such a big single‑industry tilt truly matches their comfort with large ups and downs, and if not, think about gradually blending in more varied holdings over time.
Growth
Historically, this mix has delivered a very high compound annual growth rate (CAGR) of about 28.4%. CAGR is like your “average speed” per year on a long road trip, smoothing out bumps along the way. That’s far above what broad stock markets have typically done, which shows how powerful the semiconductor exposure has been. But the max drawdown of roughly –41.6% means at one point the portfolio was down that much from a previous peak, which is emotionally and financially tough. Past numbers are impressive, but they’re not a promise; markets change, and relying on such high returns forever can lead to unrealistic expectations.
Projection
The Monte Carlo analysis, which runs 1,000 random “alternate history” paths based on past behavior, shows a wide range of possible futures. Monte Carlo is basically a powerful calculator rolling the dice thousands of times using historical volatility and correlations to see many potential outcomes. The median (50th percentile) scenario suggests very strong long‑term growth, and even the lower 5th percentile ends much higher than today. That said, all these simulations lean heavily on the idea that the future will rhyme with the past. Structural shifts, regulation, or new technologies can break those patterns, so projections should be used as a planning tool, not as a guarantee.
Asset classes
- Stocks 100%
- Cash 0%
- Other 0%
All investable money is in stocks, with no allocation to bonds, cash, or alternative assets. That’s perfectly consistent with a growth‑oriented profile and can make sense for long horizons, because stocks historically have offered the highest potential returns but also the largest swings. Compared with more balanced benchmarks that mix in bonds or other stabilizers, this portfolio is clearly on the aggressive side. Anyone holding a 100% stock mix like this might want to think through how they’d feel in a deep bear market and whether they’d ever need to tap this money in the short term, since there’s no built‑in cushion from steadier asset classes.
Sectors
- Technology 77%
- Financials 5%
- Telecommunications 4%
- Consumer Discretionary 4%
- Health Care 3%
- Industrials 3%
- Consumer Staples 2%
- Energy 1%
- Utilities 1%
- Real Estate 1%
- Basic Materials 1%
The sector picture is dominated by technology at about 77%, with smaller slices in financials, communication services, consumer areas, healthcare, and industrials. This tech‑heavy stance has been a strong tailwind in recent years, especially with the boom in semiconductors and related themes. But it also creates a big vulnerability: tech‑driven portfolios tend to drop faster when interest rates rise or when growth expectations cool. The smaller allocations to other sectors do add some diversification, but they can’t fully offset such a big tech bet. Anyone using this mix could check if they’re intentionally choosing this concentration or if a more balanced sector spread would feel steadier.
Regions
- North America 88%
- Asia Developed 7%
- Europe Developed 5%
- Asia Emerging 0%
Geographically, the exposure is heavily tilted toward North America at 88%, with modest positions in developed Asia and Europe and practically nothing in emerging regions. This is quite similar to many US‑centric growth portfolios and has actually been a strength over the last decade, since US markets—especially large tech names—have often outperformed. The trade‑off is that results become very tied to a single economic region, policy environment, and currency. If the US or North American tech stumbles while other regions shine, this portfolio won’t fully benefit. Some investors choose to slowly broaden regional exposure to reduce that single‑region dependency over the very long term.
Market capitalization
- Large-cap 46%
- Mega-cap 44%
- Mid-cap 10%
- Small-cap 1%
Market‑cap exposure is dominated by mega and big companies (roughly 90% combined), with only a small slice in mid and tiny in small caps. Large and mega caps tend to be global leaders with more stable cash flows and deeper liquidity, which can reduce company‑specific risk. This positioning aligns well with many mainstream benchmarks and is a positive sign of quality focus. The flip side is that smaller companies, which can provide different growth drivers, barely move the needle here. For someone seeking more varied growth sources, a slightly larger but still controlled allocation to mid and small companies could add another dimension without completely changing the risk profile.
Dividends
- VanEck Semiconductor ETF 0.30%
- Vanguard S&P 500 ETF 1.10%
- Weighted yield (per year) 0.58%
The combined dividend yield is around 0.58%, which is low compared with many income‑focused portfolios but pretty normal for a high‑growth, tech‑heavy mix. Dividends are the regular cash payments companies make to shareholders; here they’re a relatively small part of total return, with most of the punch coming from price appreciation. This is well aligned with a growth‑first approach where companies reinvest profits instead of paying them out. For someone not relying on this money for current income, that can be perfectly fine. If reliable cash flow ever becomes a priority, tilting a slice of the portfolio toward higher‑yielding holdings could complement this growth engine.
Ongoing product costs
- VanEck Semiconductor ETF 0.35%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.24%
The total ongoing cost (TER) is about 0.24%, driven mainly by the semiconductor ETF at 0.35%, while the broad US ETF is extremely cheap at 0.03%. Overall, this is a competitive fee level for such a focused theme plus a core index fund, and the low‑cost anchor is a real strength. Costs quietly chip away at returns every year, so keeping them under control is a big win over long periods. Here, fees look quite reasonable relative to the specialized exposure gained. If a similar risk profile could be maintained with even lower costs in the future, that might further boost long‑term compounding at the margin.
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.
On a risk‑versus‑return (Efficient Frontier) basis, there may be room to tweak the split between the two ETFs to get a better trade‑off. The Efficient Frontier is the set of portfolios that give the most expected return for each level of volatility, using only the existing building blocks. Because the semiconductor slice adds both return potential and volatility, shifting the weights slightly could move the portfolio closer to that “best possible” line for the chosen risk level. It’s important to note that “efficient” just means best risk‑return ratio; it doesn’t necessarily mean the calmest ride or the most diversified portfolio in broader terms.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
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.
