A growth-oriented portfolio with a tech-heavy tilt and low diversification

Report created on Jul 21, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is heavily concentrated in three ETFs, each representing a significant third of the total investment. This structure leans heavily towards equities, specifically within the technology sector, and lacks diversification across asset classes and geographic regions. While such a composition aligns with a growth-focused strategy, it exposes the portfolio to sector-specific risks and volatility. The heavy weighting in technology, though potentially lucrative, could be a double-edged sword in market downturns.

Growth Info

Historical performance showcases a Compound Annual Growth Rate (CAGR) of 16.33%, with a maximum drawdown of -33.01%. This indicates a strong return profile but also underscores the portfolio's vulnerability to significant losses during market corrections. The days contributing to 90% of returns being limited to 36 suggests high volatility and concentration of gains, which might not be suitable for all investors.

Projection Info

Monte Carlo simulations, using 1,000 iterations, project a wide range of outcomes with a median increase of 665.4% in portfolio value. While 995 simulations resulted in positive returns, indicating a high likelihood of growth, the significant spread between the 5th and 67th percentiles (116.3% to 964.4%) highlights potential volatility and risk. These projections, while useful, are based on historical data and cannot guarantee future performance.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is exclusively in stocks, offering no buffer against equity market downturns through bonds or other asset classes. This singular focus on equities enhances growth potential but also increases the portfolio's risk profile, especially in turbulent markets. Diversifying across asset classes could provide a more balanced risk-return profile.

Sectors Info

  • Technology
    47%
  • Health Care
    9%
  • Consumer Staples
    8%
  • Financials
    8%
  • Energy
    8%
  • Consumer Discretionary
    7%
  • Industrials
    7%
  • Telecommunications
    5%
  • Basic Materials
    1%
  • Real Estate
    1%
  • Utilities
    1%

With 47% of the portfolio in technology, there's a clear sectoral concentration. While the tech sector has historically provided robust growth, it's also prone to volatility. The remaining allocation spans various sectors, but this does not fully mitigate the risk associated with the tech-heavy focus. Considering a broader sectoral distribution could decrease risk and smooth out returns over time.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

The geographic allocation is highly concentrated in North America (99%), with minimal exposure to developed Europe and no presence in emerging or other developed markets. This concentration in a single region, while potentially capitalizing on U.S. market growth, limits global diversification and exposure to other growth opportunities.

Market capitalization Info

  • Large-cap
    38%
  • Mega-cap
    31%
  • Mid-cap
    21%
  • Small-cap
    7%
  • Micro-cap
    2%

The market capitalization breakdown shows a preference for large (38%) and mega-cap (31%) stocks, which typically offer stability and steady growth. However, the portfolio's limited exposure to small (7%) and micro-cap (2%) stocks restricts potential for high growth rates these smaller companies can offer, albeit with higher risk.

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.

Considering the Efficient Frontier, the portfolio may benefit from optimization to achieve a better risk-return balance. While the current allocation has favored growth, especially through technology stocks, a more diversified approach across sectors, asset classes, and geographies could improve the portfolio's efficiency, potentially offering similar returns with reduced volatility.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.80%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 1.83%

The overall dividend yield of 1.83% contributes to the portfolio's total return, offering a modest income stream on top of potential capital gains. However, the significant variation in yields among the ETFs, from 0.50% to 3.80%, indicates a trade-off between growth potential and income generation. Balancing these aspects could align the portfolio more closely with the investor's income needs and risk tolerance.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.06%

The portfolio's total expense ratio (TER) of 0.06% is impressively low, enhancing net returns by minimizing costs. This efficient cost structure is a strong aspect of the portfolio, ensuring that a larger portion of investment returns is retained by the investor.

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