Growth-focused portfolio with heavy tech exposure and low diversification

Report created on Aug 19, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

Your portfolio is heavily weighted towards technology, with 60% in the Vanguard S&P 500 ETF, 30% in the Invesco NASDAQ 100 ETF, and 10% in Microsoft Corporation shares. This composition indicates a strong focus on growth, particularly within the tech sector, which comprises 46% of your portfolio. While this sectoral concentration can offer significant growth opportunities, it also exposes you to higher volatility and sector-specific risks.

Growth Info

Historically, your portfolio has achieved a Compound Annual Growth Rate (CAGR) of 16.67%. This impressive performance is reflective of the tech sector's strong returns over recent years. However, the maximum drawdown of -28.39% underscores the potential volatility and risk associated with this concentration. It's crucial to understand that while past performance can guide future expectations, it doesn't guarantee them, especially in a portfolio with high sector concentration.

Projection Info

Using Monte Carlo simulations, which project future returns based on historical data, your portfolio shows potential for significant growth, with a median projected increase of 840%. However, it's important to note that these simulations, while useful for planning, are based on past performance and cannot predict future market conditions with certainty. Diversification could help mitigate some of the risks highlighted by the wide range of outcomes in these simulations.

Asset classes Info

  • Stocks
    100%

Your portfolio is entirely composed of stocks, offering no asset class diversification. This allocation aligns with a growth-focused strategy but increases risk compared to portfolios that include bonds or other asset classes. Diversifying across asset classes can reduce volatility and provide a buffer against stock market downturns, potentially leading to more stable long-term returns.

Sectors Info

  • Technology
    46%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Financials
    8%
  • Health Care
    7%
  • Industrials
    6%
  • Consumer Staples
    5%
  • Energy
    2%
  • Utilities
    2%
  • Basic Materials
    1%
  • Real Estate
    1%

The sectoral allocation highlights a significant tilt towards technology, followed by consumer cyclicals and communication services. This concentration in high-growth sectors has likely contributed to your portfolio's strong performance but also increases susceptibility to sector-specific downturns. Considering a more balanced sectoral distribution could help manage risk without significantly compromising growth potential.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

With 99% of assets in North America, your portfolio has minimal geographic diversification. This concentration in a single region can expose you to country-specific economic risks. Expanding into developed European or emerging markets could offer additional growth opportunities and risk mitigation through geographic diversification.

Market capitalization Info

  • Mega-cap
    55%
  • Large-cap
    30%
  • Mid-cap
    14%
  • Small-cap
    1%

The majority of your portfolio is invested in mega and large-cap stocks, which tend to be more stable than smaller companies but may offer lower growth potential. Including a broader range of market capitalizations could enhance diversification and potentially increase returns, as medium and small-cap stocks often outperform their larger counterparts over long periods.

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.

Your portfolio's current risk-return profile suggests there may be room for optimization towards the Efficient Frontier, where the highest possible return is achieved for a given level of risk. This could involve diversifying across more sectors, asset classes, and geographies. Such adjustments aim to maintain or enhance returns while reducing volatility, aligning your portfolio more closely with the Efficient Frontier.

Dividends Info

  • Microsoft Corporation 0.50%
  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.92%

Your portfolio's dividend yield of 0.92% contributes to total returns, particularly in a low-interest-rate environment. While growth stocks typically offer lower dividends, the income they provide can offer a steady cash flow and help mitigate volatility. Reinvesting dividends can also compound growth over time, enhancing long-term returns.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.06%

The total expense ratio (TER) of 0.06% is impressively low, which is beneficial for long-term growth as it minimizes the drag on performance. Keeping costs low is a crucial aspect of maximizing returns, especially in growth-oriented portfolios where compound interest plays a significant role.

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