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A high-octane portfolio that thinks diversification is a town in Nevada

Report created on Aug 20, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

At first glance, this portfolio seems to have mistaken the concept of diversification for a 'buy what you know and then some more of it' strategy. With nearly half of the pie taken up by just three stocks (NVIDIA, Constellation Energy, Coca-Cola) and a heavy leaning on US large-cap ETFs, it's like putting most of your eggs in one basket and then sitting on it. The lack of variety isn't just a missed opportunity; it's a recipe for a roller coaster ride where the highs are thrilling but the lows could send you to the chiropractor.

Growth Info

Historically, this portfolio has been the financial equivalent of a rocket ship, boasting a CAGR that would make even the most stoic investor's eyebrows raise. But let's remember, rocket ships are built for space, not for navigating the earthly terrain of market volatility. With a max drawdown that's a hair-raising -33.93%, it's clear this portfolio has been playing fast and loose. Sure, it's fun until someone gets a margin call.

Projection Info

Monte Carlo simulations suggest this portfolio has the potential to either fund a small country or barely scrape together enough for a decent car, depending on the day. While the optimistic projections might have you daydreaming of early retirement, it's crucial to remember these simulations are as reliable as a weather forecast during hurricane season. Betting the farm on the 50th percentile might leave you farming in retirement instead.

Asset classes Info

  • Stocks
    100%

Stocks. Stocks everywhere and not a bond in sight. With 100% of the portfolio in equities, it's clear this investor thinks bonds are about as exciting as watching paint dry. However, a little boredom might be welcome during the next market downturn. Without any bonds or alternative assets to act as a financial airbag, this portfolio is like driving a sports car without seatbelts—thrilling but unnecessarily risky.

Sectors Info

  • Technology
    39%
  • Utilities
    16%
  • Consumer Staples
    11%
  • Financials
    6%
  • Consumer Discretionary
    6%
  • Health Care
    6%
  • Telecommunications
    5%
  • Industrials
    4%
  • Energy
    4%
  • Basic Materials
    1%
  • Real Estate
    1%

Tech addiction detected. With 39% in technology, it's like betting on black because it hit once. The heavy tilt toward utilities and consumer defensive sectors does add a sprinkle of stability, but it's akin to putting a Band-Aid on a broken leg. This sector concentration magnifies risk, leaving the portfolio vulnerable to sector-specific downturns. Remember, even tech giants can catch a cold.

Regions Info

  • North America
    100%

This portfolio screams 'America First' with every fiber of its being, featuring 100% allocation to North America. While patriotic, this geographic concentration ignores the growth potential and diversification benefits of international markets. It's like going to an all-you-can-eat buffet and only hitting the burger bar. Sure, burgers are great, but have you tried sushi?

Market capitalization Info

  • Mega-cap
    51%
  • Large-cap
    36%
  • Mid-cap
    12%
  • Small-cap
    1%

The portfolio's love affair with mega and big caps is like only watching blockbuster movies and ignoring indie films. Sure, the Avengers are entertaining, but there's a whole world of cinema out there. With 51% in mega-caps and 36% in big caps, the portfolio misses out on the growth potential (and admittedly, the volatility) of smaller companies. It's playing it safe, but perhaps too safe.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Schwab U.S. Large-Cap Growth ETF
    High correlation

The high correlation between the Vanguard S&P 500 ETF and the Schwab U.S. Large-Cap Growth ETF is like buying two different brands of vanilla ice cream and expecting a flavor explosion. In a market downturn, this portfolio will learn the hard way that diversification isn't just about owning different things; it's about owning different things that behave differently. Time to mix in some chocolate or even rocky road.

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.

Efficient Frontier? More like Distant Horizon. This portfolio's approach to risk vs. return optimization seems to have taken a detour through the Wild West. While the high-octane growth strategy has its thrills, the lack of diversification and heavy reliance on correlated assets is like juggling dynamite—spectacular until it's not. A balanced approach with a sprinkle of bonds and international exposure might dull the highs but will cushion the falls.

Dividends Info

  • Constellation Energy Corp 0.40%
  • The Coca-Cola Company 2.80%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.16%

The portfolio's dividend yield strategy is like finding loose change under the couch cushions; it's nice to have but won't fund your retirement. With a total yield of 1.16%, it's clear that income generation wasn't a priority, but even growth-focused portfolios can benefit from the compounding power of reinvested dividends. A little more focus on income could add some cushion for the volatility ahead.

Ongoing product costs Info

  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.02%

In a surprising twist of fiscal responsibility, the portfolio's costs are lower than a limbo stick at a contortionist convention. With total expenses averaging out to a mere 0.02%, it's one of the few areas where this portfolio demonstrates restraint. It's like flying budget airline when you're used to private jets—uncomfortably sensible.

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