Growth-oriented portfolio with heavy tech exposure and a focus on large-cap equities

Report created on Jul 31, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

Your portfolio is heavily concentrated in three ETFs: Vanguard Total World Stock Index Fund ETF Shares, Invesco QQQ Trust, and Vanguard S&P 500 ETF, each representing a significant portion of your investment. This structure suggests a strong focus on equities across global and US markets, with a notable tilt towards technology. While this composition leverages the growth potential of the stock market, it also exposes you to sector-specific and market-wide fluctuations. Diversification within the equity asset class is moderately achieved, but the absence of other asset classes like bonds or real estate limits the portfolio's ability to hedge against stock market volatility.

Growth Info

Historically, your portfolio has shown a Compound Annual Growth Rate (CAGR) of 15.08%, with a maximum drawdown of -31.62%. These figures indicate a strong performance trend, albeit with significant volatility. The days contributing most to the returns highlight the portfolio's sensitivity to market highs and lows. While past performance is impressive, it's crucial to remember that it doesn't guarantee future results. The high growth comes with increased risk, as evidenced by the substantial drawdown, suggesting the need for a balanced approach to risk management.

Projection Info

Monte Carlo simulations, a tool for estimating future portfolio performance based on historical data, suggest a wide range of potential outcomes. With the majority of simulations indicating positive returns, there's a strong likelihood of future growth. However, the broad spread between the 5th and 67th percentiles underscores the portfolio's risk. These projections are hypothetical and should be used as one of many tools in decision-making, acknowledging that they cannot predict unforeseen market shifts.

Asset classes Info

  • Stocks
    100%

Your portfolio is exclusively invested in stocks, showcasing a high-risk, high-reward strategy aligned with growth objectives. While stocks offer the potential for significant returns, they also come with higher volatility compared to other asset classes like bonds or commodities. This singular focus on equities increases your portfolio's sensitivity to market swings. Diversifying across different asset classes can reduce risk and smooth out returns over time, potentially offering a more stable growth trajectory.

Sectors Info

  • Technology
    37%
  • Consumer Discretionary
    12%
  • Telecommunications
    11%
  • Financials
    11%
  • Health Care
    8%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Energy
    2%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

The sectoral allocation of your portfolio reveals a heavy emphasis on technology, followed by consumer cyclicals, communication services, and financial services. This tech-centric approach has historically driven high returns but also increases susceptibility to sector-specific downturns. The concentration in a few sectors can amplify the impact of market corrections within those industries. Broadening the sectoral distribution could mitigate risks and capitalize on growth opportunities across the broader economy.

Regions Info

  • North America
    87%
  • Europe Developed
    6%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%
  • Australasia
    1%
  • Latin America
    1%

With 87% of assets in North America, your portfolio is heavily weighted towards the US market. This concentration benefits from the robust performance of US equities but also limits geographic diversification. Expanding into more developed and emerging markets outside of North America could reduce exposure to region-specific economic downturns and tap into growth opportunities globally, enhancing the portfolio's resilience and potential for returns.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    33%
  • Mid-cap
    16%
  • Small-cap
    2%

The focus on mega and big-cap stocks underscores a preference for established, large-scale companies, likely chosen for their stability and growth potential. While these companies generally offer lower volatility than their smaller counterparts, they also might present limited upside compared to mid or small-cap stocks. Incorporating a broader mix of market capitalizations could introduce more growth potential and diversification, balancing stability with opportunities for higher returns.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Vanguard Total World Stock Index Fund ETF Shares
    High correlation

The high correlation between the Vanguard S&P 500 ETF and Vanguard Total World Stock Index Fund ETF Shares indicates overlapping investments, which may limit the diversification benefits of holding both. This redundancy suggests an opportunity to streamline the portfolio by reducing overlap, thereby potentially enhancing its efficiency without sacrificing performance. Considering assets with lower correlation could improve diversification and risk management.

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 Efficient Frontier, your portfolio's current allocation suggests room for optimization to achieve a better risk-return balance. The high correlation among assets indicates potential inefficiency, where diversification could be improved without necessarily sacrificing returns. Adjusting the asset mix to include less correlated investments could move the portfolio closer to the Efficient Frontier, optimizing performance for the level of risk you're willing to accept.

Dividends Info

  • Invesco QQQ Trust 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 1.14%

The dividend yields from your ETFs contribute to the portfolio’s total return, providing a stream of income alongside capital appreciation. With a total yield of 1.14%, your portfolio balances growth with income generation. In a growth-oriented strategy, dividends play a secondary role to capital gains but offer the added benefit of compounding returns when reinvested. Regularly reviewing dividend performance in the context of overall portfolio goals can ensure alignment with your long-term objectives.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.10%

The portfolio's total expense ratio (TER) of 0.10% is impressively low, maximizing the potential for net returns. Keeping costs low is crucial for long-term investment success, as even small differences in fees can significantly impact cumulative returns. Your choice of low-cost ETFs aligns well with best practices for cost-efficient investing. Continual monitoring of investment costs remains important, especially as the portfolio evolves.

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