A concentrated growth portfolio with strong us large cap tilt and notable tech exposure

Report created on Sep 4, 2024

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily tilted to individual US stocks with a quarter in a broad large cap ETF and the rest in a handful of names. That creates a core “market” base with a strong satellite of stock picks layered on top. Structurally, it’s more concentrated than a typical growth benchmark that would usually hold hundreds or thousands of positions. That concentration matters because returns will be driven by a small number of companies rather than the wider market. If the aim is smoother long‑term growth, gradually nudging more toward broad funds and slightly reducing single‑stock weights could help stabilize the ride without abandoning a growth profile.

Growth Info

Historically, this mix has delivered very strong numbers, with a compound annual growth rate (CAGR) above 30%. CAGR is just the “average yearly speed” of growth over time, smoothing out ups and downs like averaging a car’s speed on a long trip. The max drawdown of about –26% shows that it has had some meaningful drops, but not extreme for a growth‑oriented stock portfolio. Be careful, though: past performance only shows what worked in the environment we already had, especially a huge run in certain growth names. Using these numbers as context rather than a promise and planning for lower future returns would keep expectations realistic.

Projection Info

The Monte Carlo results suggest a very wide range of possible futures, from modest gains to eye‑popping growth. Monte Carlo is a tool that runs thousands of “what if” paths using patterns from past data to see how things might play out. It’s useful for showing uncertainty, but it still leans heavily on history, so it can overstate returns if the past period was unusually strong. The high median simulated return and many positive paths look impressive, but it’s wise to treat them as optimistic scenarios. When planning, it may be smarter to budget around much lower long‑term growth and view the simulations as best‑case upside rather than a base case.

Asset classes Info

  • Stocks
    100%

Everything here is in stocks, with no meaningful allocation to cash or other assets. That lines up with a growth profile but is more aggressive than a typical benchmark that might blend in bonds or other stabilizers. A 100% stock mix can compound very well over long horizons but can also fall sharply in bad markets, sometimes for several years. This allocation is fine for someone comfortable with big swings and a long runway, but it leaves no built‑in safety buffer. If more balance or flexibility is desired in the future, even a small addition to more stable assets could help cushion drawdowns without completely diluting the growth focus.

Sectors Info

  • Technology
    34%
  • Industrials
    17%
  • Financials
    8%
  • Consumer Discretionary
    8%
  • Health Care
    7%
  • Consumer Staples
    6%
  • Energy
    6%
  • Utilities
    6%
  • Real Estate
    5%
  • Telecommunications
    3%

Sector exposure is dominated by technology plus a noticeable tilt to industrials, with the rest spread across financials, cyclicals, healthcare, defensives, energy, utilities, real estate, and communications. This sector mix is somewhat in line with many modern growth portfolios, but technology at roughly a third of the total means performance will lean heavily on that part of the market. Tech‑heavy portfolios often shine in low‑rate, innovation‑friendly environments but can be hit hard when rates rise or sentiment shifts. Keeping an intentional cap on how much total exposure comes from a single theme and ensuring each sector has a clear role could smooth out returns over cycles.

Regions Info

  • North America
    100%

Geographically, everything is in North America, essentially all in the US. That’s very common for US investors and has been rewarded over the past decade, as US large caps have led global returns. Being so home‑biased, though, does tie outcomes closely to one economy, one currency, and one regulatory system. When the US outperforms, this feels great; when it lags or faces specific headwinds, there’s little offset from other regions. Global benchmarks normally include a meaningful share of developed and sometimes emerging markets. Gradually adding even a modest slice of international exposure could provide an extra diversification layer over the very long run.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    44%
  • No data
    5%
  • Mid-cap
    4%

This portfolio leans heavily into mega and big‑cap companies, with almost no true small‑cap representation. Large caps tend to be more established, easier to research, and generally less volatile than small caps, which can make them a solid core for growth investors. The flip side is that some of the dynamism and potential long‑term return premium associated with smaller companies is missing. Many broad benchmarks include a meaningful small and mid‑cap slice, which can help diversify sources of growth. If the goal is to keep a growth tilt but spread risk, gradually folding in a bit more mid or small‑cap exposure via diversified vehicles could broaden the opportunity set.

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.

From a risk‑return standpoint, this portfolio sits on the aggressive side, with high historical returns and notable drawdowns. The Efficient Frontier is a concept that maps the best possible risk‑return trade‑offs you could get using only the existing ingredients, just by changing their weights. “Efficient” here doesn’t mean safest or most diversified; it just means getting the most expected return per unit of risk. Shifting some weight from the most volatile and concentrated names toward the broader ETF and any stabilizing assets could move it closer to that efficient region. That would still keep a strong growth tilt but aim for a smoother relationship between risk taken and returns pursued.

Dividends Info

  • Apple Inc 0.40%
  • AbbVie Inc 2.90%
  • Broadcom Inc 0.70%
  • Carpenter Technology Corporation 0.20%
  • Diamondback Energy Inc 2.60%
  • JPMorgan Chase & Co. 5.80%
  • Nextera Energy Inc 2.80%
  • Realty Income Corporation 5.50%
  • Vanguard S&P 500 ETF 1.10%
  • Waste Management Inc 1.10%
  • Walmart Inc 0.60%
  • Weighted yield (per year) 1.42%

The overall yield is modest, around the low single digits, with meaningful contributions from a few high‑payout names and a REIT, and much lower or no yield from the more growth‑focused holdings. That setup matches a growth‑oriented style that prioritizes price appreciation over immediate income. Dividends can still be important, though, because they provide a steady cash flow that can be reinvested, especially during downturns when prices are lower. For someone not needing current income, automatically reinvesting dividends is usually a strong long‑term habit. If regular cash flow ever becomes a priority, slowly tilting toward more consistent dividend payers could support that goal without entirely giving up on growth.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.01%

The explicit costs here are impressively low, especially with the very cheap broad ETF at the core, which supports better long‑term compounding. Ongoing fees eat into returns quietly over time, so every fraction of a percent saved can make a real difference over decades. Individual stocks do not have ongoing management fees, but they can involve trading costs and tax impacts if bought and sold frequently. Keeping turnover modest and continuing to emphasize low‑cost vehicles where possible helps maintain this cost advantage. This area is genuinely a strong point, and maintaining that discipline will likely pay off over the long run.

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