High-growth tech-focused portfolio with speculative risk and concentrated exposure

Report created on Jun 23, 2025

Risk profile Info

7/7
Speculative
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

Your portfolio is heavily weighted towards technology, with a significant portion allocated to leveraged and broad market ETFs. The ProShares UltraPro QQQ, making up half of your portfolio, is a leveraged ETF that aims to deliver three times the daily performance of its underlying index. The Vanguard Total Stock Market Index Fund ETF Shares provide broad market exposure but still, your portfolio leans heavily towards tech through this and the Invesco QQQ Trust. This composition suggests a strategy focused on high-growth sectors but comes with increased volatility and risk, especially given the speculative risk profile and the single-focused diversification classification.

Growth Info

Historically, your portfolio has shown impressive growth, with a Compound Annual Growth Rate (CAGR) of 32.52%. However, this comes with a significant Max Drawdown of -74.35%, indicating a high level of risk and potential for substantial losses. The days contributing to 90% of returns are notably few, suggesting that the portfolio's performance is heavily reliant on specific, high-impact trading days, which adds to the speculative nature of the investment strategy.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential future outcomes, indicate a wide range of possible performances for your portfolio. While the median outcome shows substantial growth, the 5th percentile indicates potential for loss, highlighting the speculative risk inherent in your current asset allocation. It's crucial to understand that these projections are based on past data and cannot guarantee future performance.

Asset classes Info

  • Stocks
    85%
  • Cash
    15%

Your portfolio's asset allocation is focused on stocks (85%) with a minor cash holding (15%). This allocation underscores your aggressive growth strategy but also reflects a lack of diversification across asset classes, which could expose you to higher volatility. Diversifying across different asset classes can help mitigate risk and reduce the impact of market downturns on your portfolio.

Sectors Info

  • Technology
    44%
  • Telecommunications
    13%
  • Consumer Discretionary
    12%
  • Health Care
    7%
  • Financials
    6%
  • Industrials
    6%
  • Consumer Staples
    6%
  • Utilities
    2%
  • Basic Materials
    2%
  • Energy
    2%
  • Real Estate
    1%

The sector allocation reveals a heavy emphasis on technology (44%), followed by communication services and consumer cyclicals. While tech sectors have historically provided strong returns, they also experience higher volatility. The concentration in a few sectors increases the portfolio's sensitivity to sector-specific risks. Diversifying across a broader range of sectors could reduce risk and stabilize returns over time.

Regions Info

  • North America
    98%
  • Europe Developed
    1%

Geographically, your portfolio is almost entirely invested in North America (98%), with minimal exposure to other regions. This concentration in a single geography increases the risk of regional economic downturns affecting your portfolio's performance. Expanding into international markets could provide additional diversification benefits and access to growth opportunities outside the US.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    26%
  • Mid-cap
    12%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown shows a strong preference for mega (39%) and big (26%) cap stocks, with limited exposure to medium, small, and micro-cap stocks. This skew towards larger companies may provide some stability but also limits potential for high growth rates that smaller companies can offer. Incorporating a broader mix of market caps could enhance diversification and potential for higher returns.

Redundant positions Info

  • ProShares UltraPro QQQ
    Invesco QQQ Trust
    High correlation

The high correlation between ProShares UltraPro QQQ and Invesco QQQ Trust indicates redundancy within your portfolio, as these investments tend to move in tandem. This redundancy does not contribute to diversification and instead amplifies risk. Considering the replacement or reduction of overlapping assets could improve your portfolio's overall risk profile.

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.

Optimizing your portfolio involves addressing the high correlation between certain assets and reassessing the heavy focus on technology and North American stocks. Using the Efficient Frontier could help identify a more balanced asset allocation that maximizes returns for a given level of risk. However, remember that optimization based on historical data does not guarantee future performance.

Dividends Info

  • Invesco QQQ Trust 0.60%
  • ProShares UltraPro QQQ 1.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Weighted yield (per year) 1.28%

The dividend yields from your holdings contribute to the portfolio's total yield of 1.28%. While not the primary focus of your investment strategy, dividends offer a source of income and can provide a cushion during market downturns. Given the speculative nature of your portfolio, it may be beneficial to consider balancing high-growth investments with assets that offer higher dividend yields for income stability.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • ProShares UltraPro QQQ 0.88%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.47%

The total expense ratio (TER) of 0.47% is relatively moderate, considering the inclusion of a leveraged ETF, which typically carries higher fees. Keeping costs low is crucial for enhancing long-term returns, especially in a high-risk portfolio. Continuously monitoring and minimizing investment costs will support better net performance over time.

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