Growth-oriented portfolio with high exposure to US equities and a touch of cryptocurrency
Report created on Jun 11, 2025Risk profile
5/7
Diversification profile
1/5
Positions
-
QQ Invesco NASDAQ 100 ETF
QQQM - US46138G6492 50.00% -
VO Vanguard S&P 500 ETF
VOO - US9229083632 40.00% -
SG iShares® 0-3 Month Treasury Bond ETF
SGOV - US46436E7186 7.00% -
IB iShares Bitcoin Trust
IBIT - US46438F1012 3.00%
The portfolio is heavily weighted towards US equities, with a significant allocation in the Invesco NASDAQ 100 ETF and Vanguard S&P 500 ETF, making up 90% of the portfolio. This concentration in large-cap stocks, particularly in the technology sector, suggests a growth-focused strategy. The inclusion of a small percentage in short-duration Treasury bonds and a nascent position in cryptocurrency via the iShares Bitcoin Trust adds a layer of diversification, albeit modestly.
Growth
Historically, this portfolio has demonstrated strong performance with a Compound Annual Growth Rate (CAGR) of 21.51%. Its maximum drawdown of -19.76% indicates resilience during market volatility, though the concentration in high-growth equities could amplify risks. The days contributing to 90% of returns highlight the portfolio's dependence on significant market movements, underscoring the importance of timing in this investment strategy.
Projection
Monte Carlo simulations project a wide range of potential outcomes, with the median scenario suggesting substantial growth. However, the reliance on historical data in these simulations means past performance is not a reliable indicator of future results. The high annualized return projection from all simulations emphasizes the portfolio's aggressive growth potential but also hints at high volatility.
Asset classes
- Stocks 90%
- Cash 7%
- Other 3%
The asset class allocation with 90% in stocks, 7% in cash equivalents, and 3% in other (cryptocurrency) reflects a growth-oriented approach with limited downside protection. This allocation aligns with the portfolio's risk classification but may benefit from increased diversification across more asset classes to mitigate risk.
Sectors
- Technology 39%
- Telecommunications 12%
- Consumer Discretionary 11%
- Health Care 7%
- Financials 6%
- Consumer Staples 5%
- Industrials 5%
- Utilities 2%
- Energy 2%
- Basic Materials 1%
- Real Estate 1%
The sectoral distribution is heavily skewed towards technology, communication services, and consumer cyclicals, sectors known for their volatility but also for significant growth potential. While this concentration may have bolstered past performance, it exposes the portfolio to sector-specific risks, suggesting a review of sector balance could enhance stability.
Regions
- North America 89%
- Europe Developed 1%
Geographic allocation is predominantly in North America (89%), with minimal exposure to developed Europe and no direct investment in emerging markets or Asia. This geographic concentration in developed markets, particularly the US, has historically provided stability and growth but may limit exposure to potential gains in emerging markets.
Market capitalization
- Mega-cap 46%
- Large-cap 31%
- Mid-cap 12%
The focus on mega and large-cap stocks (77% combined) aligns with the portfolio's growth and risk profile, offering stability and potential for significant returns. However, the lack of small-cap exposure could mean missing out on higher-growth opportunities in emerging companies.
Redundant positions
-
High correlationInvesco NASDAQ 100 ETFVanguard S&P 500 ETF
The high correlation between the Invesco NASDAQ 100 ETF and Vanguard S&P 500 ETF indicates overlapping investments that may not provide the diversification benefits expected. Reducing similar holdings could enhance portfolio efficiency by lowering risk without sacrificing potential returns.
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 portfolio's risk-return profile could be improved by addressing the high correlation between its largest holdings. An optimized portfolio with the same risk level could potentially offer a higher expected return of 4.87%, suggesting that a reallocation could enhance performance without increasing risk.
Dividends
- Invesco NASDAQ 100 ETF 0.60%
- iShares® 0-3 Month Treasury Bond ETF 4.60%
- Vanguard S&P 500 ETF 1.30%
- Weighted yield (per year) 1.14%
The portfolio's total dividend yield of 1.14% suggests that income generation is not a primary goal. Given the growth orientation, this is appropriate, but investors seeking income in addition to growth might consider diversifying into assets with higher yield potential.
Ongoing product costs
- iShares Bitcoin Trust 0.12%
- Invesco NASDAQ 100 ETF 0.15%
- iShares® 0-3 Month Treasury Bond ETF 0.07%
- Vanguard S&P 500 ETF 0.03%
- Weighted costs total (per year) 0.10%
With a Total Expense Ratio (TER) of 0.10%, the portfolio is efficiently managed cost-wise, supporting better long-term performance. Keeping costs low is crucial in maximizing returns, particularly in a growth-focused portfolio where compound growth plays a significant role.
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