Growth-focused portfolio with heavy tech exposure and low diversification

Report created on Aug 11, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is highly concentrated, with 70% allocated to the Vanguard Information Technology Index Fund ETF Shares and 30% to the Vanguard Total Stock Market Index Fund ETF Shares. This structure indicates a strong focus on the technology sector, which comprises 78% of the portfolio. The remaining assets are spread across various sectors, but with minimal representation. This composition suggests a growth-oriented strategy, albeit with low diversification, as indicated by a diversification score of 2 out of 5.

Growth Info

Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 20.22%, with a maximum drawdown of -33.23%. These figures highlight the portfolio's high growth potential, albeit with significant volatility. The days contributing to 90% of returns being concentrated in just 40 days further underscores the portfolio's susceptibility to short-term market movements. Comparing this performance to broader market benchmarks would be essential for understanding its relative risk and return profile.

Projection Info

Monte Carlo simulations, using 1,000 iterations, project a wide range of outcomes for this portfolio. The 50th percentile outcome suggests a potential 904.0% return, with a high degree of variability around this median. The 5th and 67th percentiles indicate returns of 160.2% and 1,256.2%, respectively. These projections, while optimistic, are based on historical data and should be viewed with caution as past performance is not indicative of future results.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is nearly entirely in stocks (99%), with a minimal cash holding (1%). This allocation aligns with a growth-focused strategy but exposes the portfolio to higher market volatility. The lack of diversification across asset classes, such as bonds or real estate, can increase risk during market downturns.

Sectors Info

  • Technology
    78%
  • Financials
    5%
  • Consumer Discretionary
    3%
  • Telecommunications
    3%
  • Industrials
    3%
  • Health Care
    3%
  • Consumer Staples
    2%
  • Energy
    1%
  • Real Estate
    1%
  • Utilities
    1%
  • Basic Materials
    1%

With 78% of the portfolio concentrated in technology, the sector allocation heavily leans towards growth industries. However, such concentration also increases susceptibility to sector-specific risks. The minimal allocations to other sectors, like Financial Services and Healthcare, do not substantially mitigate this risk. Diversifying across more sectors could help balance the portfolio's risk profile.

Regions Info

  • North America
    99%

Geographically, the portfolio is almost exclusively invested in North America (99%), with no exposure to developed Europe, emerging Asia, or Latin America. This concentration in a single region can limit opportunities for global diversification and increase vulnerability to region-specific economic and political risks.

Market capitalization Info

  • Mega-cap
    49%
  • Large-cap
    26%
  • Mid-cap
    14%
  • Small-cap
    8%
  • Micro-cap
    3%

The portfolio's market capitalization exposure is predominantly in mega (49%) and big (26%) cap stocks, with smaller allocations to medium, small, and micro caps. This indicates a preference for established, large-scale companies, which can offer stability but may also limit growth potential compared to smaller, more agile firms.

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.

Considering the portfolio's current composition and risk-return profile, optimizing towards the Efficient Frontier could enhance its performance. This might involve adjusting the asset allocation to achieve a better balance between risk and return, without necessarily compromising the growth focus. Such adjustments should be based on a comprehensive analysis of potential trade-offs between different asset classes and sectors.

Dividends Info

  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 0.71%

The portfolio's dividend yield, at an average of 0.71%, reflects its growth orientation over income generation. The technology sector, which dominates the portfolio, typically reinvests profits into further growth, resulting in lower dividend payouts. Investors seeking income may need to consider a more balanced approach.

Ongoing product costs Info

  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.08%

The portfolio's total expense ratio (TER) of 0.08% is impressively low, which is beneficial for long-term growth as it minimizes the drag on returns. Keeping costs low is crucial in maximizing investment returns, especially over extended periods.

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