Growth-oriented portfolio with a strong focus on US equities and technology sector

Report created on Oct 27, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards US equity ETFs, with a significant emphasis on technology through the Invesco QQQ Trust. This ETF, along with the Vanguard S&P 500 ETF, constitutes 75% of the portfolio, indicating a strong bias towards large-cap US equities. The inclusion of the Schwab U.S. Dividend Equity ETF and the Vanguard Total International Stock Index Fund ETF Shares introduces some diversification, but the overall exposure remains predominantly in the US market. This composition suggests a growth-focused strategy with moderate diversification across sectors and geographies.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 16.43%, with a maximum drawdown of -30.62%. The days contributing to 90% of returns number just 38, highlighting the portfolio's reliance on specific high-growth periods. While past performance is impressive, it's crucial to remember that it doesn't guarantee future results. This performance metric indicates a portfolio that has benefitted significantly from the bullish US equity market, particularly in technology and large-cap stocks.

Projection Info

Using a Monte Carlo simulation, which projects future performance based on historical data, the portfolio shows a wide range of outcomes. The 50th percentile outcome suggests a 488% return, indicating strong growth potential. However, the significant variance between the 5th and 67th percentiles (88.3% to 714.7%) underscores the portfolio's high risk. While simulations provide valuable insights, they're based on past trends and cannot predict future market movements with certainty.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no exposure to cash, bonds, or alternative investments. This allocation aligns with a growth-focused investment strategy but lacks the balance that other asset classes can provide. Diversifying across different asset classes can reduce volatility and mitigate risk, especially during market downturns.

Sectors Info

  • Technology
    38%
  • Telecommunications
    12%
  • Consumer Discretionary
    12%
  • Health Care
    8%
  • Financials
    8%
  • Consumer Staples
    7%
  • Industrials
    7%
  • Energy
    4%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    1%

The sector allocation is heavily skewed towards technology, which comprises 38% of the portfolio. Other significant sectors include communication services and consumer cyclicals. This concentration in growth-oriented sectors can offer high returns but also increases susceptibility to sector-specific risks. Balancing sector exposure could help stabilize returns during tech sector downturns.

Regions Info

  • North America
    90%
  • Europe Developed
    5%
  • Asia Emerging
    2%
  • Japan
    2%
  • Asia Developed
    1%

Geographic exposure is heavily concentrated in North America (90%), with minimal investments in developed Europe and emerging Asian markets. This concentration enhances exposure to US market performance but limits global diversification benefits. Increasing exposure to international markets could provide additional growth opportunities and reduce the portfolio's vulnerability to US-centric economic cycles.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    37%
  • Mid-cap
    17%
  • Small-cap
    2%

The portfolio's market capitalization exposure leans heavily towards mega and big-cap stocks, which constitute 80% of the allocation. This focus on larger companies is typical for growth-oriented portfolios seeking stability and consistent returns. However, incorporating medium to small-cap stocks could enhance potential for higher growth rates, albeit with increased risk.

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 allocation emphasizes growth with a strong focus on the US equity market, particularly within the technology sector. While this has historically provided robust returns, exploring the Efficient Frontier could reveal opportunities to optimize the risk-return profile. Adjusting allocations among the current assets might enhance the portfolio's efficiency by improving the balance between risk and return, without necessarily compromising growth objectives.

Dividends Info

  • Invesco QQQ Trust 0.30%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Vanguard S&P 500 ETF 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.30%

The portfolio's overall dividend yield is 1.30%, with the Schwab U.S. Dividend Equity ETF providing the highest yield at 3.80%. While the focus on growth stocks often results in lower dividend yields, dividends can contribute to total return and provide a source of income, which can be particularly beneficial during market volatility.

Ongoing product costs Info

  • Invesco QQQ Trust 0.20%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.11%

The portfolio's total expense ratio (TER) is relatively low at 0.11%, which is beneficial for long-term growth as lower costs translate to higher net returns. Keeping costs low is a prudent strategy, particularly for a portfolio with a significant allocation to passive index ETFs.

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