A growth-focused portfolio with high tech exposure and strategic diversification

Report created on Aug 3, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is characterized by a heavy emphasis on technology and growth sectors, with 60% of its allocation in tech-centric ETFs, including the Invesco QQQ Trust, Schwab U.S. Large-Cap Growth ETF, and VanEck Semiconductor ETF. The inclusion of the Vanguard Energy Index Fund and Vanguard Value Index Fund introduces sectoral and thematic balance, while the SPDR® Gold Shares ETF adds a non-stock asset class for diversification. The portfolio's structure reflects a growth-oriented strategy with a moderate level of diversification across sectors and asset classes.

Growth Info

Historically, the portfolio has demonstrated robust performance with a Compound Annual Growth Rate (CAGR) of 18.05%. The maximum drawdown experienced was -31.85%, indicating a relatively high level of volatility, typical of growth-focused investments. The days contributing to 90% of returns were notably concentrated, suggesting that the portfolio's performance has been driven by strong gains on specific days, a characteristic of volatile, high-growth assets.

Projection Info

Utilizing Monte Carlo simulations, which forecast future performance based on historical data, the portfolio shows a wide range of potential outcomes. The median projection suggests a significant increase in value, with a 50th percentile outcome of 641.0% growth. However, it's crucial to remember that these projections are speculative and depend heavily on past market conditions repeating themselves, which is never guaranteed.

Asset classes Info

  • Stocks
    90%
  • Other
    10%

The portfolio's asset allocation leans heavily towards stocks (90%), with a 10% investment in gold through the SPDR® Gold Shares ETF. This mix supports the portfolio's growth orientation but limits its exposure to other diversifying asset classes like bonds or real estate. The absence of cash holdings indicates a fully invested stance, aiming to maximize market exposure and potential returns.

Sectors Info

  • Technology
    42%
  • Energy
    16%
  • Telecommunications
    6%
  • Consumer Discretionary
    6%
  • Financials
    5%
  • Health Care
    5%
  • Industrials
    3%
  • Consumer Staples
    3%
  • Utilities
    1%
  • Basic Materials
    1%
  • Real Estate
    1%

Sector allocation highlights a strong preference for technology (42%), energy (16%), and a mix of other sectors including communication services and consumer cyclicals. This concentration in tech and energy sectors may increase volatility but also offers substantial growth potential. The diversified sector exposure outside of these areas helps mitigate some risk, though the focus remains on growth rather than defensive sectors.

Regions Info

  • North America
    86%
  • Asia Developed
    2%
  • Europe Developed
    2%

Geographically, the portfolio is heavily weighted towards North America (86%), with minimal exposure to developed markets in Asia and Europe. This concentration in the U.S. market aligns with the portfolio's growth strategy, given the significant presence of tech giants and energy companies. However, this geographic focus may increase susceptibility to regional economic fluctuations.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    32%
  • Mid-cap
    16%
  • No data
    10%
  • Small-cap
    2%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown shows a preference for mega (39%) and large-cap (32%) stocks, which is consistent with the growth and stability goals of the portfolio. Medium-cap stocks represent 16%, offering some potential for higher growth albeit with increased risk. The allocation to unknown, small, and micro-cap stocks is minimal, reflecting a cautious approach to risk.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Invesco QQQ Trust
    High correlation

The high correlation observed between the Schwab U.S. Large-Cap Growth ETF and Invesco QQQ Trust indicates overlapping investments, which may limit the portfolio's diversification benefits. Reducing exposure to similar assets could enhance the portfolio's risk-adjusted performance by lowering volatility without significantly compromising potential returns.

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.

To optimize risk versus return, considering the portfolio's current configuration, reducing overlap in highly correlated assets could improve diversification. The optimal portfolio, with an expected return of 18.88% at a risk level of 15.46%, suggests that slight adjustments in asset allocation could enhance performance. This involves balancing growth potential with risk management, possibly through diversifying into less correlated sectors or asset classes.

Dividends Info

  • Invesco QQQ Trust 0.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • VanEck Semiconductor ETF 0.40%
  • Vanguard Energy Index Fund ETF Shares 3.20%
  • Vanguard Value Index Fund ETF Shares 2.20%
  • Weighted yield (per year) 1.07%

The portfolio's dividend yield, averaging 1.07%, reflects its growth focus, with lower emphasis on income generation. The Vanguard Energy Index Fund and Vanguard Value Index Fund contribute higher yields, providing some income alongside growth potential. This balanced approach allows for reinvestment of dividends to compound growth or as a modest income source.

Ongoing product costs Info

  • SPDR® Gold Shares 0.40%
  • Invesco QQQ Trust 0.20%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard Energy Index Fund ETF Shares 0.10%
  • Vanguard Value Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.18%

The portfolio's total expense ratio (TER) of 0.18% is impressively low, enhancing its long-term return potential by minimizing cost drag. The varied expense ratios among the ETFs, from the low-cost Schwab and Vanguard funds to the slightly higher-cost SPDR and VanEck funds, demonstrate a strategic selection of instruments that balance cost efficiency with targeted sector exposure.

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