Growth-oriented portfolio with a strong focus on US equities and technology sector

Report created on Sep 12, 2025

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.

Positions

This portfolio is heavily weighted towards U.S. equities, comprising 85% of its geographic allocation, with a significant emphasis on the technology sector, which represents 33% of the sectoral allocation. The asset mix is entirely in stocks, with no diversification into bonds, cash, or alternative asset classes. This composition suggests a growth-focused strategy, albeit with a high concentration in a single country and sector, which could introduce specific risks related to market volatility and sector-specific downturns.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 15.39%, with a maximum drawdown of -32.62%. These figures indicate strong past performance but also highlight the portfolio's vulnerability to significant market corrections. The days contributing to 90% of returns being concentrated in just 36 days suggest that the portfolio's performance is highly reliant on short periods of exceptional gains, a characteristic of growth-focused investments.

Projection Info

Monte Carlo simulations, using 1,000 iterations, predict a wide range of outcomes, with the median scenario suggesting a 492.6% increase. However, the 5th percentile outcome at 78.0% underscores the risk of lower-than-expected returns. These projections, while useful for understanding potential volatility and outcomes, should be viewed with caution as they rely on historical data, which may not accurately predict future market movements.

Asset classes Info

  • Stocks
    100%

The portfolio is exclusively invested in stocks, indicating a high-risk, high-reward strategy. While stocks have historically offered superior long-term returns compared to bonds or cash, they also come with increased volatility and risk of loss, particularly in the short to medium term. This asset class concentration fits a growth-oriented investment strategy but lacks the risk mitigation that diversification across different asset classes can provide.

Sectors Info

  • Technology
    33%
  • Financials
    11%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Health Care
    9%
  • Industrials
    8%
  • Consumer Staples
    7%
  • Energy
    5%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    1%

A third of the portfolio is invested in the technology sector, followed by allocations to financial services and consumer cyclicals. This sectoral focus on technology aligns with a growth investment strategy, given the sector's potential for high returns. However, it also exposes the portfolio to sector-specific risks, such as regulatory changes or technological disruptions, which could impact performance more than a more diversified sectoral approach.

Regions Info

  • North America
    85%
  • Europe Developed
    6%
  • Asia Emerging
    3%
  • Japan
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

The geographic allocation is heavily skewed towards North America (85%), with minimal exposure to emerging markets and other developed regions. This concentration in a single region, while potentially capitalizing on the growth of the U.S. economy and its dominant tech industry, limits global diversification and exposes the portfolio to regional economic downturns or geopolitical risks.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    34%
  • Mid-cap
    18%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's exposure is primarily to mega and big-cap stocks, which constitute 77% of the market capitalization allocation. This focus on larger companies may provide some stability compared to smaller caps, given their established market positions and typically more stable earnings. However, it may also limit potential upside from smaller, faster-growing companies.

Redundant positions Info

  • Schwab U.S. Broad Market ETF
    Invesco QQQ Trust
    Schwab U.S. Large-Cap Growth ETF
    High correlation

The high correlation among the 'Schwab U.S. Broad Market ETF', 'Invesco QQQ Trust', and 'Schwab U.S. Large-Cap Growth ETF' suggests redundancy in the portfolio, reducing the benefits of diversification. In periods of market downturn, especially within the tech sector or the broader U.S. market, these assets are likely to move in tandem, potentially amplifying losses.

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 presence of highly correlated assets suggests an opportunity for optimization to enhance diversification and potentially improve the risk-return profile. Removing or reducing exposure to overlapping assets could make the portfolio more resilient to sector-specific or market-wide downturns, aligning it closer to the Efficient Frontier, where the highest possible return is achieved for a given level of risk.

Dividends Info

  • Invesco QQQ Trust 0.50%
  • Schwab U.S. Broad Market ETF 1.10%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • Schwab Emerging Markets Equity ETF 2.50%
  • Schwab International Equity ETF 2.40%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Weighted yield (per year) 1.46%

The portfolio's total dividend yield stands at 1.46%, with the Schwab U.S. Dividend Equity ETF contributing the highest yield at 3.70%. While dividends provide a source of income and can contribute to total return, the overall yield is relatively low, reflecting the growth-oriented nature of the portfolio where capital appreciation is the primary goal rather than income generation.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • Schwab U.S. Broad Market ETF 0.03%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab Emerging Markets Equity ETF 0.11%
  • Schwab International Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Weighted costs total (per year) 0.07%

The portfolio benefits from low overall costs, with a Total Expense Ratio (TER) of 0.07%. Lower investment costs can significantly enhance long-term returns by reducing the drag on performance. This efficient cost structure is a positive aspect, especially important for a growth-oriented strategy where every percentage point of return can compound significantly over time.

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