High-growth tech-focused portfolio with significant exposure to top US companies

Report created on Jul 22, 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 heavily concentrated in the technology sector, with 100% of its assets in stocks, primarily through ETFs tracking the S&P 500, NASDAQ 100, and the Information Technology sector. The significant overlap between these ETFs, especially between the NASDAQ 100 and the Information Technology ETF, contributes to the portfolio's low diversification score. This concentration in tech and large-cap companies from North America underscores a high-growth but high-risk strategy, given the sector's volatility.

Growth Info

Historically, this portfolio has demonstrated a robust Compound Annual Growth Rate (CAGR) of 17.22%, with a notable maximum drawdown of -31.40%. These figures reflect the high-risk, high-reward nature of tech investments. The days contributing most significantly to returns highlight the volatility and the potential for rapid gains or losses. Comparing this performance to benchmarks would typically show a higher volatility but potentially greater returns, emphasizing the growth-focused strategy.

Projection Info

The Monte Carlo simulation, projecting future performance, suggests a wide range of outcomes, with a median increase of 708.6% in portfolio value. This underscores the high-risk nature of the portfolio, with a significant portion of simulations indicating substantial growth. However, it's crucial to remember that such projections are based on historical data, which does not guarantee future performance.

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 allocation strategy maximizes growth potential but also increases risk, especially in market downturns. Diversifying across different asset classes can help mitigate this risk while still aiming for growth.

Sectors Info

  • Technology
    61%
  • Telecommunications
    9%
  • Consumer Discretionary
    8%
  • Financials
    5%
  • Health Care
    5%
  • Industrials
    4%
  • Consumer Staples
    4%
  • Utilities
    1%
  • Energy
    1%
  • Basic Materials
    1%
  • Real Estate
    1%

With 61% of the portfolio in technology, followed by smaller allocations to communication services and consumer cyclicals, the sectoral allocation reflects a focus on growth sectors. However, this concentration increases susceptibility to sector-specific risks. Diversifying into underrepresented sectors could provide a buffer against tech-centric market fluctuations.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

The geographic allocation is almost entirely in North America, with a negligible exposure to developed Europe and no presence in emerging markets or Asia. This geographic concentration enhances the portfolio's exposure to US market performance but limits potential gains from global diversification.

Market capitalization Info

  • Mega-cap
    51%
  • Large-cap
    31%
  • Mid-cap
    14%
  • Small-cap
    3%
  • Micro-cap
    1%

The portfolio's focus on mega and big-cap stocks (82% combined) aligns with its growth and risk profile, leveraging the stability and potential of large companies. However, the limited exposure to medium, small, and micro-cap stocks restricts opportunities for outsized returns from smaller, high-growth companies.

Redundant positions Info

  • Invesco NASDAQ 100 ETF
    Vanguard Information Technology Index Fund ETF Shares
    High correlation

The high correlation between the Invesco NASDAQ 100 ETF and the Vanguard Information Technology Index Fund ETF Shares indicates redundancy, limiting diversification benefits. Diversifying into less correlated assets could reduce portfolio volatility without significantly compromising growth potential.

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 portfolio's risk-return profile could be optimized by addressing the high correlation between its core holdings. Reducing overlap and introducing assets from different sectors or asset classes could enhance diversification, potentially improving the portfolio's efficiency on the Efficient Frontier by offering a more favorable risk-return trade-off.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.74%

The overall dividend yield of 0.74% shows a moderate contribution to total returns, typical for growth-focused portfolios where the emphasis is on capital appreciation rather than income. Considering the portfolio's strategy, the dividend yield aligns with expectations, though investors seeking income might look for higher-yielding opportunities.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.09%

The portfolio benefits from low total expense ratios (TER), averaging 0.09%, which is advantageous for long-term growth by minimizing cost drag on investment returns. This cost efficiency is a strong point, ensuring more of the portfolio's gains are retained by the investor.

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