High-risk tech-focused portfolio with significant exposure to speculative stocks

Report created on Aug 12, 2025

Risk profile Info

7/7
Speculative
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards technology stocks, with a significant concentration in NVIDIA Corporation and Ondas Holdings Inc., making up over 60% of the portfolio. Such a high concentration in a few positions increases the portfolio's volatility and risk. The inclusion of two Vanguard ETFs provides some diversification, but their focus on technology and growth sectors does little to mitigate sector-specific risks. The portfolio's speculative nature is underscored by its risk score of 7 out of 7, indicating a very high-risk tolerance.

Growth Info

With a reported CAGR of 493.08%, the portfolio has experienced exceptional growth. However, this comes with a substantial maximum drawdown of -75.71%, highlighting the portfolio's high volatility. It's important to note that such high returns are typically accompanied by significant risk, as evidenced by the days contributing to 90% of returns being concentrated in just three days. This pattern suggests that the portfolio's performance is highly erratic, which may not be sustainable over the long term.

Projection Info

The Monte Carlo simulation, despite its limitations in predicting future returns, indicates a split outcome with 509 out of 1,000 simulations showing positive returns. This suggests a nearly balanced chance of gaining or losing, reflective of the portfolio's speculative nature. It's crucial to understand that while historical data can guide expectations, it cannot guarantee future performance, especially with such a high degree of volatility and risk.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, with no allocation to other asset classes like bonds or cash. This lack of diversification across asset classes can amplify risk, especially during market downturns when stocks are generally negatively impacted. Diversifying across different asset classes can help mitigate these risks by spreading exposure.

Sectors Info

  • Technology
    84%
  • Basic Materials
    5%
  • Telecommunications
    5%
  • Health Care
    3%
  • Financials
    2%
  • Consumer Discretionary
    1%

With 84% of the portfolio allocated to technology, the sector concentration is remarkably high. While the tech sector can offer significant growth opportunities, it also comes with higher volatility and susceptibility to market sentiment shifts. The minimal exposure to other sectors such as basic materials, communication services, and healthcare does little to balance this concentration, leaving the portfolio vulnerable to tech-specific market movements.

Regions Info

  • North America
    93%
  • Asia Emerging
    6%
  • Europe Developed
    1%

The geographic allocation is heavily skewed towards North America (93%), with minimal exposure to Asia Emerging and Europe Developed markets. This concentration in a single region, while potentially capitalizing on the U.S. market's growth, limits global diversification and exposure to potential gains in other markets, increasing the portfolio's vulnerability to regional economic shifts.

Market capitalization Info

  • Mega-cap
    56%
  • Small-cap
    37%
  • Large-cap
    3%
  • Mid-cap
    3%

The portfolio's exposure is predominantly in mega (56%) and small-cap (37%) stocks, with minimal allocations to big and medium caps. This mix of very large and small companies can lead to higher volatility, as small-cap stocks often experience greater price swings, while mega-cap stocks can provide some stability. However, the overall balance leans towards higher risk and potential for significant fluctuation in value.

Redundant positions Info

  • Vanguard Information Technology Index Fund ETF Shares
    Vanguard S&P 500 Growth Index Fund ETF Shares
    High correlation

The high correlation between the Vanguard Information Technology Index Fund ETF Shares and the Vanguard S&P 500 Growth Index Fund ETF Shares indicates redundancy, reducing the diversification benefits. Both ETFs focus on growth-oriented sectors, particularly technology, which may lead to overlapping holdings and increased exposure to sector-specific risks.

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 the risk-return profile, consider reducing the high correlation between certain assets and diversifying across more sectors and asset classes. While the portfolio shows a penchant for high growth, balancing with lower-risk investments could improve the risk-adjusted returns. The Efficient Frontier can guide reallocating investments to achieve a more favorable risk-return balance, though it's based on historical data and assumptions about future performance.

Dividends Info

  • Alphabet Inc Class A 0.40%
  • Taiwan Semiconductor Manufacturing 1.10%
  • Vanguard Information Technology Index Fund ETF Shares 0.40%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.50%
  • Weighted yield (per year) 0.12%

The portfolio's dividend yield is relatively low, with a total yield of 0.12%, which is typical for growth-focused and technology-heavy portfolios. While dividends are not the primary goal in such portfolios, they can provide a source of income and potential reinvestment opportunities, contributing to compounding growth over time.

Ongoing product costs Info

  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.10%
  • Weighted costs total (per year) 0.01%

The portfolio benefits from low costs, with Total Expense Ratios (TER) for the Vanguard ETFs at just 0.10%, contributing to an overall low portfolio cost. Lower costs are crucial for long-term investment performance, as they directly enhance net returns by reducing the drag on investment growth.

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