Growth-oriented portfolio with high tech exposure and a focus on large-cap stocks

Report created on Jul 19, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is heavily concentrated in growth-oriented assets, with 80% allocated to a mutual fund and an ETF both targeting growth opportunities, primarily in large-cap U.S. equities. The remaining 20% is invested in a dividend-focused ETF, adding a slight income component. This composition reflects a strong preference for growth over value, with a minor emphasis on income through dividends. The portfolio's diversification is low, with a significant concentration in technology and communication services sectors, indicating a high exposure to market volatility associated with these sectors.

Growth Info

Historical performance indicates a Compound Annual Growth Rate (CAGR) of 17.63%, which is impressive. However, the maximum drawdown of -35.63% suggests a high level of risk, likely due to the portfolio's concentration in volatile sectors such as technology. The minimal number of days contributing to the majority of returns highlights the portfolio's susceptibility to significant market movements, underscoring the importance of timing in investment decisions for this portfolio.

Projection Info

The Monte Carlo simulation, projecting future performance based on historical data, suggests a wide range of outcomes with a median increase of 672.7%. While the majority of simulations predict positive returns, the broad spread from the 5th to 67th percentile underscores the uncertainty and risk inherent in this growth-focused strategy. It's crucial to remember that these projections are speculative, relying on past trends that may not predict future movements accurately.

Asset classes Info

  • Stocks
    97%
  • Cash
    2%
  • Other
    1%

With 97% of the portfolio in stocks, the asset class allocation underscores a strong growth orientation at the expense of diversification across asset classes such as bonds or real estate. The minimal cash and 'other' holdings provide limited liquidity and risk mitigation. This high equity concentration aligns with the portfolio's growth profile but increases susceptibility to market fluctuations.

Sectors Info

  • Technology
    39%
  • Telecommunications
    17%
  • Health Care
    8%
  • Consumer Discretionary
    7%
  • Financials
    7%
  • Consumer Staples
    6%
  • Industrials
    5%
  • Consumer Discretionary
    5%
  • Energy
    4%
  • Utilities
    1%
  • Basic Materials
    1%

The sector allocation reveals a heavy tilt towards technology and communication services, comprising 56% of the portfolio. While this reflects a common growth-oriented strategy, it also exposes the portfolio to sector-specific risks, such as regulatory changes or market sentiment shifts. The presence of healthcare, consumer cyclicals, and financial services offers some balance, but the overall sector distribution remains skewed towards high-growth, high-volatility areas.

Regions Info

  • North America
    97%
  • Asia Developed
    1%
  • Latin America
    1%
  • Europe Developed
    1%

Geographic exposure is predominantly North American (97%), with minimal diversification into developed markets in Asia, Latin America, and Europe. This concentration in the U.S. market may limit exposure to global growth opportunities and increase vulnerability to region-specific economic downturns or geopolitical tensions.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    28%
  • Mid-cap
    15%
  • Small-cap
    4%

The market capitalization breakdown, with 50% in mega-cap stocks, indicates a bias towards stability and established companies, which is typical for growth-oriented portfolios seeking to mitigate risk through investment in large, reliable firms. However, the presence of medium and small-cap stocks (19%) introduces potential for higher growth at increased risk.

Redundant positions Info

  • FIDELITY ADVISOR GROWTH OPPORTUNITIES FUND CLASS Z
    Schwab U.S. Large-Cap Growth ETF
    High correlation

The high correlation between the Fidelity Advisor Growth Opportunities Fund and the Schwab U.S. Large-Cap Growth ETF suggests redundancy, limiting the portfolio's diversification benefits. Diversifying into assets with lower correlations could reduce risk without necessarily 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.

Optimizing the portfolio for risk vs. return using the Efficient Frontier could involve reducing the overlap in highly correlated assets, thereby enhancing diversification without compromising growth potential. This approach aims to achieve the most favorable risk-return balance by adjusting asset allocations within the existing portfolio framework.

Dividends Info

  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Weighted yield (per year) 0.92%

The dividend yield from the Schwab U.S. Dividend Equity ETF contributes to the portfolio's income, albeit modestly. With a total yield of 0.92%, the portfolio's income component is overshadowed by its growth focus. For investors seeking income, increasing the allocation to higher-yielding assets could provide a better balance between growth and income.

Ongoing product costs Info

  • FIDELITY ADVISOR GROWTH OPPORTUNITIES FUND CLASS Z 0.37%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Weighted costs total (per year) 0.18%

The total expense ratio (TER) of 0.18% is relatively low, enhancing net returns. The cost efficiency is a positive aspect of this portfolio, with the bulk of expenses coming from the actively managed mutual fund. Lowering costs further, though challenging, could involve reallocating from the mutual fund to lower-cost ETFs without significantly altering the portfolio's risk-return profile.

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