A growth-focused portfolio with strong tech exposure and moderate diversification

Report created on Jul 20, 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 characterized by a significant tilt towards technology and growth, with 60% of its allocation in ETFs that focus on the US market's large-cap and tech sectors. The Vanguard S&P 500 ETF, Invesco QQQ Trust, and Vanguard Growth Index Fund ETF Shares collectively form a core that is heavily skewed towards growth stocks. The inclusion of the ARK Innovation ETF and VanEck Semiconductor ETF further emphasizes the portfolio's growth and tech orientation. The Schwab U.S. Dividend Equity ETF and Vanguard Total International Stock Index Fund ETF Shares provide a modicum of diversification, but the overall composition remains focused on high-growth potential sectors.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 16.86%, with a maximum drawdown of -37.24%. This performance is indicative of a high-growth, high-volatility strategy where significant gains are possible but come with substantial risk. The days contributing most to returns highlight the portfolio's reliance on specific high-performing periods, suggesting volatility and concentration risk. When compared to a more diversified benchmark, these figures underscore the trade-off between high potential returns and the risk of significant drawdowns.

Projection Info

Utilizing Monte Carlo simulations, which forecast future performance based on historical data and random variations, the portfolio shows a wide range of outcomes. The 50th percentile projection suggests a substantial return potential, with the majority of simulations yielding positive results. However, the reliance on historical data and the inherent unpredictability of markets mean these projections are not guarantees. They serve as a useful tool for understanding potential risk and return profiles but should be interpreted with caution.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, demonstrating a clear growth-oriented strategy with no hedging or income-focused assets like bonds or real estate. This allocation aligns with the portfolio's risk classification but limits its ability to mitigate losses during market downturns. Diversifying across asset classes could provide a buffer against volatility and reduce the portfolio's overall risk profile.

Sectors Info

  • Technology
    38%
  • Consumer Discretionary
    11%
  • Financials
    10%
  • Telecommunications
    10%
  • Health Care
    9%
  • Industrials
    7%
  • Consumer Staples
    6%
  • Energy
    5%
  • Basic Materials
    2%
  • Utilities
    1%
  • Real Estate
    1%

With 38% allocated to technology and significant investments in consumer cyclicals and financial services, the portfolio is positioned to benefit from growth in these sectors. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or economic shifts that disproportionately affect these industries. Balancing sector exposure could help mitigate these risks while still capturing growth opportunities.

Regions Info

  • North America
    88%
  • Europe Developed
    6%
  • Asia Developed
    2%
  • Asia Emerging
    2%
  • Japan
    2%

The portfolio's geographic allocation is heavily weighted towards North America (88%), with minimal exposure to international markets. This concentration in a single region increases vulnerability to local economic and political events. Expanding into more diverse international holdings could provide exposure to global growth trends and reduce region-specific risks.

Market capitalization Info

  • Mega-cap
    40%
  • Large-cap
    37%
  • Mid-cap
    19%
  • Small-cap
    3%
  • Micro-cap
    1%

The focus on mega and big-cap stocks (77% combined) suggests a preference for established, large companies, which typically offer stability and steady growth. However, the relatively small allocation to medium, small, and micro-cap stocks limits the portfolio's exposure to potentially higher-growth opportunities in smaller companies. Increasing diversification across market capitalizations could enhance return potential while managing risk.

Redundant positions Info

  • Invesco QQQ Trust
    Vanguard Growth Index Fund ETF Shares
    Vanguard S&P 500 ETF
    High correlation

The high correlation among the Invesco QQQ Trust, Vanguard Growth Index Fund ETF Shares, and Vanguard S&P 500 ETF indicates redundancy in the portfolio, limiting diversification benefits. By reallocating from overlapping assets to less correlated options, the portfolio could achieve a more efficient risk-return profile, enhancing its ability to withstand market fluctuations.

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.

Optimizing the portfolio involves addressing the high correlation among its largest holdings to enhance diversification without compromising growth potential. This can be achieved by reducing exposure to overlapping ETFs and reallocating to assets with lower correlation. Such adjustments would move the portfolio closer to the Efficient Frontier, improving the risk-return trade-off by maximizing returns for a given level of risk.

Dividends Info

  • Invesco QQQ Trust 0.40%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • VanEck Semiconductor ETF 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.35%

The portfolio's dividend yield of 1.35% contributes to its total return, with the Schwab U.S. Dividend Equity ETF and Vanguard Total International Stock Index Fund ETF Shares providing the highest yields. While dividends are not the primary focus of this growth-oriented strategy, they offer a source of income and potential for reinvestment, complementing capital gains.

Ongoing product costs Info

  • ARK Innovation ETF 0.75%
  • Invesco QQQ Trust 0.20%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.17%

The portfolio's total expense ratio (TER) of 0.17% is relatively low, which is beneficial for long-term growth as costs can significantly impact net returns. The ARK Innovation ETF has the highest individual cost, but its inclusion is justified by its targeted growth strategy. Keeping costs in check is crucial, especially in a growth-focused portfolio where the compound effect of expenses can erode significant returns over time.

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.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey