Growth-focused portfolio with strong tech orientation and low diversification

Report created on Aug 1, 2025

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

Positions

This portfolio is heavily concentrated in the stock market, with a significant emphasis on technology, as indicated by a 50% allocation to the Vanguard Total Stock Market Index Fund ETF Shares and a combined 50% in the Invesco S&P 500® Momentum ETF and Vanguard Information Technology Index Fund ETF Shares. Such a composition suggests a strong growth orientation but comes with low diversification across asset classes, concentrating risk in specific sectors and market behaviors.

Growth Info

The portfolio has shown impressive historical performance with a Compound Annual Growth Rate (CAGR) of 21.04%. However, it's essential to note that past performance is not indicative of future results. The significant drawdown of -33.01% illustrates the level of risk associated with this growth-focused strategy. Days contributing to 90% of returns being limited suggests high volatility and the importance of timing in market exposure.

Projection Info

Monte Carlo simulations, employing thousands of randomized trials to predict future performance, suggest a wide range of outcomes for this portfolio. With all simulations showing positive returns and a median increase of 1,685%, the forward projection is optimistic. However, the reliance on historical data in these simulations means they cannot account for unforeseeable market changes or black swan events.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no presence in bonds, real estate, or alternative investments. This singular focus on equities enhances growth potential but also increases susceptibility to market volatility. Diversifying across different asset classes can help mitigate risk without necessarily compromising long-term growth prospects.

Sectors Info

  • Technology
    46%
  • Financials
    12%
  • Consumer Discretionary
    9%
  • Telecommunications
    8%
  • Industrials
    7%
  • Health Care
    6%
  • Consumer Staples
    5%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    1%

The sector allocation reveals a heavy tilt towards technology, followed by financial services and consumer cyclicals. While the tech sector can offer substantial growth, it also exposes the portfolio to sector-specific risks, such as regulatory changes or shifts in consumer behavior. Balancing sector exposure can reduce volatility and improve resilience against market downturns.

Regions Info

  • North America
    100%

Geographic allocation is entirely focused on North America, missing out on potential opportunities and risk mitigation offered by international markets. Global diversification can provide access to growth in emerging markets and reduce the impact of regional economic downturns on the portfolio's overall performance.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    30%
  • Mid-cap
    15%
  • Small-cap
    5%
  • Micro-cap
    2%

The portfolio's market capitalization exposure leans heavily towards mega and big cap stocks, which are typically less volatile than smaller companies but might offer lower growth potential in the long run. Including a broader mix of market caps could enhance returns while managing 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.

Considering the Efficient Frontier, this portfolio could benefit from optimization to achieve a better risk-return ratio. While the current allocation emphasizes growth, introducing assets with lower correlation and different risk profiles could enhance overall portfolio efficiency, potentially delivering similar or improved returns with reduced volatility.

Dividends Info

  • Invesco S&P 500® Momentum ETF 0.60%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Weighted yield (per year) 0.88%

The dividend yield of the portfolio stands at 0.88%, which contributes to total returns and provides a modest income stream. Given the growth orientation, dividends play a secondary role but can offer a cushion during market dips. Reviewing dividend policies in the context of total return expectations is advisable.

Ongoing product costs Info

  • Invesco S&P 500® Momentum ETF 0.13%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Weighted costs total (per year) 0.07%

The overall portfolio cost, represented by the Total Expense Ratio (TER) of 0.07%, is impressively low, maximizing the potential for net returns. Keeping costs low is crucial for long-term investment success, especially in growth-oriented portfolios where every percentage point counts towards compounding returns.

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