Growth-oriented portfolio with a strong tech focus and global exposure

Report created on Jul 20, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards ETFs, with significant allocations in the Invesco QQQ Trust and Vanguard Total Stock Market Index Fund, each comprising 30% of the portfolio. This structure indicates a growth-focused strategy, leveraging broad market exposure alongside specific sector bets. However, the heavy concentration in a few ETFs, particularly those with overlapping holdings, raises questions about true diversification despite the portfolio's classification as broadly diversified.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 17.10% and a maximum drawdown of -36.95%, the portfolio demonstrates strong growth potential tempered by considerable volatility. The days that make up 90% of returns highlight the impact of significant market movements on performance. This historical performance, while impressive, underscores the portfolio's risk level, aligning with its growth profile and higher risk score.

Projection Info

The Monte Carlo simulation, projecting a wide range of outcomes from conservative to optimistic scenarios, suggests a robust growth trajectory. However, the reliance on historical data in these projections means future returns could deviate, especially given market uncertainties and the portfolio's tech-heavy focus. It's crucial to understand the limitations of simulated forecasts, as they cannot account for unforeseen market shifts.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely invested in stocks (99%), with a minimal cash holding. This asset allocation is typical for growth-oriented portfolios seeking higher returns, albeit at increased risk. The absence of bonds or alternative investments limits the portfolio's ability to hedge against stock market volatility, suggesting a need for diversification across asset classes.

Sectors Info

  • Technology
    43%
  • Consumer Discretionary
    11%
  • Telecommunications
    11%
  • Financials
    9%
  • Health Care
    7%
  • Industrials
    7%
  • Consumer Staples
    4%
  • Basic Materials
    2%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    1%

The technology sector dominates the portfolio at 43%, followed by consumer cyclicals and communication services. This sectoral concentration enhances growth prospects but also exposes the portfolio to sector-specific risks, such as regulatory changes or technological disruptions. Diversifying across more sectors could reduce volatility without significantly compromising growth potential.

Regions Info

  • North America
    83%
  • Europe Developed
    7%
  • Asia Developed
    3%
  • Asia Emerging
    3%
  • Japan
    2%
  • Australasia
    1%
  • Latin America
    1%
  • Africa/Middle East
    1%

With 83% of assets in North America, the portfolio is heavily biased towards the US market. While this concentration has historically offered strong growth opportunities, it also exposes investors to regional economic and political risks. Increasing exposure to developed and emerging markets outside the US could provide better global diversification and risk management.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    32%
  • Mid-cap
    15%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio's focus on mega and big cap stocks (80% combined) aligns with its growth and risk profile, providing stability and potential for significant returns. However, the relatively small allocation to medium, small, and micro-cap stocks limits exposure to high-growth opportunities in these segments, which could offer diversification benefits and potentially higher returns.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Invesco QQQ Trust
    Vanguard Growth Index Fund ETF Shares
    High correlation

The high correlation among the Vanguard Total Stock Market Index Fund, Invesco QQQ Trust, and Vanguard Growth Index Fund ETF Shares indicates redundancy, limiting diversification benefits. Reducing overlap by reallocating assets among less correlated options could enhance portfolio efficiency without significantly altering its growth orientation.

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 the portfolio along the Efficient Frontier could enhance risk-return efficiency, especially by addressing the high correlation among certain assets. This process involves adjusting allocations to achieve the best possible balance between risk and return, focusing on diversification and cost efficiency. Given the portfolio's current composition, such optimization could involve reducing overlap and exploring underrepresented asset classes or sectors.

Dividends Info

  • Invesco QQQ Trust 0.40%
  • VanEck Semiconductor ETF 0.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 0.98%

The overall dividend yield of 0.98% is modest, reflecting the portfolio's growth focus over income generation. For investors prioritizing growth, this yield is appropriate, but those seeking income might consider reallocating a portion towards higher-yielding assets without significantly compromising growth potential.

Ongoing product costs Info

  • ARK Innovation ETF 0.75%
  • Invesco QQQ Trust 0.20%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.15%

The portfolio's total expense ratio (TER) of 0.15% is relatively low, enhancing its attractiveness by minimizing costs. The varying expense ratios among the ETFs underline the importance of cost awareness in portfolio construction, especially for long-term growth strategies where even small differences in costs can have a significant impact on net returns.

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