A growth-focused portfolio with heavy tech exposure and a blend of ETFs and stocks

Report created on Jul 29, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

The portfolio is predominantly invested in equities, with a significant focus on technology through both ETFs and individual stocks. The largest holdings include major ETFs like the Vanguard S&P 500 and Invesco NASDAQ 100, complemented by high-growth tech stocks such as NVIDIA, Tesla, and Netflix. This composition suggests a growth-oriented strategy, heavily reliant on the performance of the tech sector and large-cap companies. The minor allocation to bonds via the Vanguard Total Bond Market Index Fund provides a slight diversification, but the overall risk profile is tilted towards equities, making it sensitive to stock market fluctuations.

Growth Info

With a historical Compound Annual Growth Rate (CAGR) of 24.54%, the portfolio has demonstrated strong performance. This high return rate is accompanied by significant volatility, as indicated by a maximum drawdown of -38.53%, which underscores the risks associated with a growth-focused investment strategy. It's important to note that while past performance is impressive, it's not a guaranteed indicator of future results. The days contributing most to returns highlight the portfolio's dependency on short-term gains, which may not be sustainable in the long term.

Projection Info

Monte Carlo simulations, which use historical data to project future portfolio performance, suggest a wide range of potential outcomes. With key percentiles indicating a possible annualized return of 23.57%, the optimistic scenario shows substantial growth. However, the simulations also reveal scenarios with negative returns, emphasizing the inherent risks. It's crucial to understand that these projections are speculative and depend on past market behavior, which may not repeat in the future.

Asset classes Info

  • Stocks
    95%
  • Bonds
    4%

The portfolio's asset allocation leans heavily towards stocks (95%), with a minor allocation to bonds (4%). This distribution aligns with a growth-oriented investment approach but comes with higher volatility and risk. The almost negligible bond holding offers limited cushioning against stock market downturns. Diversifying across more asset classes, including real estate or commodities, could help mitigate risks without significantly compromising growth potential.

Sectors Info

  • Technology
    35%
  • Consumer Discretionary
    15%
  • Telecommunications
    15%
  • Financials
    13%
  • Consumer Staples
    6%
  • Health Care
    4%
  • Industrials
    3%
  • Energy
    1%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

Sector allocation highlights a strong emphasis on technology, consumer cyclicals, and communication services, which are sectors known for their growth potential. However, this concentration also increases susceptibility to sector-specific downturns. For instance, tech stocks are particularly volatile during interest rate hikes. Balancing this with investments in more stable sectors, like healthcare or utilities, might reduce volatility while still allowing for growth.

Regions Info

  • North America
    95%

The geographic concentration in North America (95%) underscores a lack of international diversification. While the U.S. market has historically offered robust growth opportunities, this concentration exposes the portfolio to regional economic and political risks. Expanding into developed European or emerging Asian markets could provide additional growth avenues and reduce the portfolio's vulnerability to North American market fluctuations.

Market capitalization Info

  • Mega-cap
    62%
  • Large-cap
    23%
  • Mid-cap
    10%
  • Small-cap
    1%

The portfolio's focus on mega (62%) and big-cap (23%) companies is consistent with its growth and risk profile, as these firms often offer more stability and growth potential than smaller companies. However, this focus may miss out on the higher growth potential of mid and small-cap companies. Introducing a more balanced market cap allocation could enhance returns while managing 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.

The analysis suggests that an optimized portfolio with the same risk level could potentially achieve a higher expected return of 35.22%. This implies that there are opportunities to reallocate assets to enhance the risk-return profile. Optimization might involve adjusting the sector, geographic, and asset class mix to align more closely with the Efficient Frontier, which represents the ideal balance between risk and return.

Dividends Info

  • Vanguard Total Bond Market Index Fund ETF Shares 3.80%
  • Estee Lauder Companies Inc 1.80%
  • Alphabet Inc Class A 0.40%
  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard Financials Index Fund ETF Shares 1.70%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.84%

The portfolio's overall dividend yield is relatively low, which is typical for growth-focused investments prioritizing capital appreciation over income. However, dividends can provide a steady income stream and contribute to total returns, especially during market volatility. Considering investments with higher dividend yields might offer a balance between growth and income, adding a layer of stability to the portfolio.

Ongoing product costs Info

  • Vanguard Total Bond Market Index Fund ETF Shares 0.03%
  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard Financials Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.04%

The portfolio benefits from low overall costs, with a Total Expense Ratio (TER) of just 0.04%. Low costs are crucial for enhancing long-term returns, as they directly impact net performance. The choice of low-cost ETFs is commendable and should be maintained as part of the investment strategy. However, continuously monitoring and optimizing for costs, including transaction fees, can further improve returns.

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