Aggressive growth portfolio with a strong focus on technology and US markets

Report created on Jul 19, 2025

Risk profile Info

6/7
Aggressive
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards technology and US markets, with significant allocations in ETFs that track major indices like the NASDAQ 100 and the S&P 500, each comprising 20% of the portfolio. The inclusion of individual tech stocks like Lucid Group and Rivian Automotive, alongside the Vanguard Information Technology Index Fund ETF, further emphasizes the tech orientation. This configuration suggests a strategy aiming for high growth, leveraging the tech sector's dynamic potential, but it also introduces a notable concentration risk.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 10.52%, with a maximum drawdown of -48.94%. These figures reflect the aggressive growth strategy's inherent volatility and potential for significant fluctuations. The days contributing to 90% of returns being limited to seven indicates that the portfolio's performance is highly dependent on a few key days, underscoring the importance of remaining invested through market cycles to capture potential gains.

Projection Info

Monte Carlo simulations, which project future performance based on historical data, suggest a wide range of outcomes for this portfolio. While the median outcome indicates a decrease, the 67th percentile shows substantial growth potential. However, it's crucial to note that such simulations are based on past trends and cannot account for unforeseen market shifts. The significant spread in projected outcomes highlights the portfolio's high risk and potential for both substantial gains and losses.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely invested in stocks (99%), with a minimal cash holding (1%). This allocation aligns with the portfolio's aggressive growth objective but comes with higher volatility and risk. The lack of diversification across asset classes can amplify the impact of stock market fluctuations on the portfolio's overall performance.

Sectors Info

  • Technology
    35%
  • Consumer Discretionary
    27%
  • Industrials
    11%
  • Financials
    7%
  • Telecommunications
    6%
  • Health Care
    5%
  • Consumer Staples
    4%
  • Basic Materials
    2%
  • Energy
    2%
  • Utilities
    1%
  • Real Estate
    1%

The sectoral allocation further underscores the portfolio's aggressive stance, with a heavy emphasis on technology (35%) and consumer cyclicals (27%). While these sectors can offer substantial growth opportunities, they are also more susceptible to market volatility. The portfolio's limited exposure to traditionally defensive sectors like healthcare and consumer defensive suggests a higher risk tolerance and a focus on capital appreciation over stability.

Regions Info

  • North America
    81%
  • Europe Developed
    8%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

With 81% of assets allocated to North America, the portfolio has a strong bias towards the US market. This concentration can offer significant growth opportunities, given the US market's historical performance, but it also increases exposure to country-specific risks. The modest allocation to developed Europe and emerging markets in Asia provides some geographic diversification, though it remains limited.

Market capitalization Info

  • Large-cap
    37%
  • Mega-cap
    34%
  • Mid-cap
    20%
  • Small-cap
    7%

The portfolio's market capitalization breakdown shows a balanced mix between big (37%), mega (34%), and medium (20%) cap stocks, with a smaller allocation to small caps (7%). This distribution supports the portfolio's growth objectives while mitigating some risks associated with smaller, more volatile companies. However, the focus on larger companies, particularly in the tech sector, may limit exposure to high-growth potential in emerging firms.

Redundant positions Info

  • Invesco NASDAQ 100 ETF
    Vanguard Information Technology Index Fund ETF Shares
    Vanguard S&P 500 ETF
    High correlation

The portfolio contains highly correlated assets, particularly among the ETFs tracking major indices and technology stocks. This correlation diminishes the diversification benefits, as these assets are likely to move in tandem during market shifts. Reducing overlap by diversifying across less correlated assets or sectors could enhance the portfolio's resilience to market 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 analysis suggests that optimizing for a more efficient risk-return ratio could significantly enhance expected returns while maintaining the current risk level. By addressing the portfolio's high correlation among assets, particularly in the technology sector and overlapping ETFs, and diversifying more broadly, the portfolio could achieve a better balance between risk and reward.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 0.95%

The portfolio's dividend yield is relatively low, with a total yield of 0.95%, reflecting its growth-focused strategy. While dividends can provide a steady income stream and contribute to total returns, the portfolio's emphasis on capital appreciation over income generation is consistent with its aggressive growth profile.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.06%

The portfolio benefits from relatively low costs, with a total Expense Ratio (TER) of 0.06%. This efficiency is advantageous for long-term growth, as lower costs directly translate to higher net returns. Keeping costs minimal is crucial in maximizing the compounding effect on investment growth over time.

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