A growth-focused portfolio with high exposure to technology and large-cap stocks

Report created on Aug 17, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards the SPDR® Portfolio S&P 500 ETF at 60%, with significant allocations in the VanEck Semiconductor ETF and Invesco S&P 500® Momentum ETF, each at 20%. The concentration in these ETFs suggests a strong focus on growth, particularly within the technology sector, which is evident from the sector allocation. The portfolio's diversification is moderate, given its exclusive investment in stocks, with no presence in other asset classes like bonds or real estate. This composition aligns with a growth-oriented strategy but exposes the portfolio to higher volatility and sector-specific risks.

Growth Info

The historical performance showcases an impressive Compound Annual Growth Rate (CAGR) of 22.54%, though it has experienced a significant maximum drawdown of -32.54%. This volatility is characteristic of growth-focused portfolios, especially those with substantial allocations to sectors like technology. The days contributing to 90% of returns being concentrated in a relatively small number indicates the portfolio's returns are heavily reliant on short, strong market rallies, a common trait for growth-driven investments.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential future outcomes, suggest a wide range of possible performance scenarios for this portfolio. With a 5th percentile outcome at a 348.8% increase and a median (50th percentile) outcome at a 2,391.8% increase, the projections indicate significant growth potential. However, it's important to remember that such simulations are speculative and depend heavily on past market behavior, which is not always a reliable predictor of future performance.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, showcasing a lack of diversification across asset classes. While this can lead to higher growth in bullish markets, it also increases the risk during market downturns. Diversification across different asset classes can help mitigate this risk, as bonds and real estate, for example, often move differently than stocks, providing a buffer against stock market volatility.

Sectors Info

  • Technology
    26%
  • Financials
    12%
  • Consumer Discretionary
    9%
  • Telecommunications
    9%
  • Industrials
    7%
  • Health Care
    6%
  • Consumer Staples
    5%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    1%
  • Basic Materials
    1%

The sector allocation is heavily skewed towards technology, which comprises 26% of the portfolio. This is complemented by allocations to financial services, consumer cyclicals, and communication services. While this sectoral focus can capitalize on growth opportunities, especially in technology, it also increases susceptibility to sector-specific downturns. Balancing sector exposure can help manage this risk, ensuring that the portfolio is not overly reliant on the performance of a single sector.

Regions Info

  • North America
    96%
  • Asia Developed
    2%
  • Europe Developed
    1%

Geographically, the portfolio is overwhelmingly focused on North America (96%), with minimal exposure to Asia Developed (2%) and Europe Developed (1%). This concentration enhances exposure to the economic and market conditions of the North American region, particularly the US, but limits potential benefits from global diversification. Including more geographical diversity could reduce risk and tap into growth opportunities in other regions.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    36%
  • Mid-cap
    14%
  • Small-cap
    1%

The portfolio's market capitalization breakdown shows a strong preference for mega (48%) and big (36%) cap stocks, with less exposure to medium (14%) and small (1%) cap stocks. This bias towards larger companies is typical for growth-focused portfolios seeking stability and consistent performance. However, incorporating more small and medium cap stocks could offer higher growth potential, albeit with increased volatility.

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 structure suggests it is positioned towards the higher end of the risk-return spectrum, as indicated by its risk score. While it demonstrates a strong potential for growth, there may be opportunities to optimize its risk-return profile further. Employing the Efficient Frontier concept could help identify an optimal asset allocation that maximizes returns for a given level of risk. However, this would require a more diversified asset base, including different asset classes and geographic exposures.

Dividends Info

  • VanEck Semiconductor ETF 0.40%
  • SPDR® Portfolio S&P 500 ETF 1.20%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Weighted yield (per year) 0.92%

The dividend yields from the ETFs contribute to the portfolio's total yield of 0.92%, which is modest but can offer a steady income stream in addition to capital appreciation. While growth-focused portfolios often prioritize reinvestment of earnings over immediate income, dividends can provide a buffer during market volatility and contribute to total return over the long term.

Ongoing product costs Info

  • VanEck Semiconductor ETF 0.35%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.11%

The portfolio's total expense ratio (TER) of 0.11% is relatively low, enhancing its attractiveness by minimizing costs that can erode returns over time. The individual ETF expense ratios range from 0.02% to 0.35%, indicating a cost-effective approach to growth investing. Keeping costs low is crucial for maximizing long-term growth, especially in a growth-oriented portfolio where compound returns play a significant role.

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