High-growth tech-focused portfolio with significant semiconductor exposure

Report created on Aug 7, 2025

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio suits an investor with a high risk tolerance and a long-term investment horizon, who is primarily seeking capital growth. The significant exposure to the technology sector, particularly semiconductors, suggests the investor is comfortable with the volatility and sector-specific risks inherent in these markets. Ideal for those bullish on tech's future, this portfolio demands a proactive, informed approach to manage potential downturns and capitalize on growth opportunities.

Positions

This portfolio is heavily weighted towards technology, with a significant emphasis on semiconductors, represented by a 27.27% investment in the VanEck Semiconductor ETF. The inclusion of broad-market ETFs like the SPDR S&P 500 and specialized tech ETFs such as the Vanguard Information Technology Index Fund, both at 27.27%, alongside direct stock holdings in tech giants Broadcom Inc and Microsoft Corporation, each at 9.09%, underscores a clear focus on the tech sector. This concentration enhances growth potential but also increases sector-specific risk.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 24.80%, outpacing many traditional benchmarks. However, it's important to note the significant maximum drawdown of -36.87%, which indicates high volatility. The days contributing to 90% of returns being concentrated in just 48 days further highlights the portfolio's susceptibility to short-term market movements, underscoring the need for investors to have a high risk tolerance and a long-term perspective.

Projection Info

Monte Carlo simulations, running 1,000 scenarios, predict a wide range of outcomes but lean heavily towards positive growth, with 998 simulations ending in gains. The median outcome suggests an impressive 3,136.9% increase, signaling strong potential for future growth. However, the reliance on historical data in these projections means past performance is not a reliable indicator of future results, emphasizing the importance of continuous monitoring and adjustment.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no diversification into other asset classes like bonds or real estate. This singular focus on equities, particularly in high-growth sectors, maximizes potential returns but also exposes the portfolio to higher market volatility and sector-specific downturns. Diversifying across asset classes could reduce risk without significantly compromising potential growth.

Sectors Info

  • Technology
    82%
  • Financials
    4%
  • Consumer Discretionary
    3%
  • Telecommunications
    3%
  • Health Care
    3%
  • Industrials
    2%
  • Consumer Staples
    1%
  • Energy
    1%
  • Utilities
    1%
  • Real Estate
    1%

With 82% of the portfolio concentrated in technology, the sector allocation reflects a strong belief in tech's growth prospects. However, this focus comes at the expense of diversification, as financial services and other sectors represent only a small fraction of the portfolio. While tech has historically provided substantial returns, sector concentration increases vulnerability to industry-specific risks.

Regions Info

  • North America
    95%
  • Asia Developed
    3%
  • Europe Developed
    2%

The geographic allocation is heavily skewed towards North America (95%), with minimal exposure to developed markets in Asia and Europe. This concentration benefits from the robust performance of the U.S. tech sector but limits global diversification. Expanding into emerging markets or increasing allocations to developed markets outside North America could offer new growth opportunities and risk mitigation.

Market capitalization Info

  • Mega-cap
    58%
  • Large-cap
    29%
  • Mid-cap
    10%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown, with a focus on mega (58%) and big (29%) cap stocks, aligns with its growth profile and risk classification. While this concentration in larger companies may offer stability relative to smaller caps, the limited exposure to mid, small, and micro-cap stocks restricts potential for outsized gains from emerging companies.

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.

The current allocation demonstrates a marked preference for high-growth potential, albeit with considerable risk, particularly from a sector-specific perspective. Utilizing the Efficient Frontier concept could identify opportunities to adjust allocations for an optimal risk-return balance. However, given the portfolio's strong historical performance and growth orientation, any adjustments should be carefully considered to maintain the strategic focus.

Dividends Info

  • Broadcom Inc 0.80%
  • Microsoft Corporation 0.60%
  • VanEck Semiconductor ETF 0.40%
  • SPDR S&P 500 ETF Trust 1.10%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Weighted yield (per year) 0.67%

The portfolio's dividend yield averages 0.67%, reflecting a moderate income component. Given the growth orientation, this yield is in line with expectations, as the focus is on capital appreciation rather than income generation. Investors seeking higher income might consider diversifying into assets with higher dividend yields without significantly compromising growth potential.

Ongoing product costs Info

  • VanEck Semiconductor ETF 0.35%
  • SPDR S&P 500 ETF Trust 0.10%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Weighted costs total (per year) 0.15%

The portfolio's total expense ratio (TER) of 0.15% is impressively low, especially given the specialized nature of some holdings. This cost efficiency supports better long-term performance by minimizing the drag on returns. Keeping costs low while maintaining strategic focus is commendable and should be a continued priority.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey