Growth-oriented portfolio with heavy tech exposure and limited international diversification

Report created on Aug 23, 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 leans heavily towards the U.S. stock market, with a significant concentration in technology through ETFs and a notable position in Amazon.com Inc. The asset allocation shows a strong bias towards growth stocks, as evidenced by the heavy weighting in the Vanguard S&P 500 ETF, Invesco NASDAQ 100 ETF, and Schwab U.S. Large-Cap Growth ETF. The inclusion of a dividend-focused ETF and an equity premium income ETF indicates a strategy to balance growth with income generation. However, the low diversity score and high risk score suggest a narrow focus that could benefit from broader diversification.

Growth Info

Historical performance, with a Compound Annual Growth Rate (CAGR) of 16.00% and a maximum drawdown of -19.59%, illustrates a portfolio that has experienced significant growth but also faces substantial volatility. The concentration in high-growth sectors like technology has likely contributed to these figures. While past performance is impressive, it's essential to remember that it does not guarantee future results, especially in a portfolio with high sector concentration.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of over 600%. This suggests potential for substantial growth but also underscores the high level of uncertainty and risk inherent in this portfolio. It's important to interpret these projections with caution, as they are based on historical data and cannot account for unforeseen market changes.

Asset classes Info

  • Stocks
    98%
  • No data
    1%

The portfolio's asset allocation is almost entirely in stocks (98%), with a minimal amount not classified. This high equity exposure aligns with the portfolio's growth profile but also increases its sensitivity to market fluctuations. Diversifying across more asset classes, including fixed income or real estate, could help mitigate risk without significantly compromising growth potential.

Sectors Info

  • Technology
    36%
  • Consumer Discretionary
    14%
  • Telecommunications
    10%
  • Financials
    10%
  • Health Care
    9%
  • Industrials
    7%
  • Consumer Staples
    6%
  • Energy
    4%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    1%

With 36% in technology and significant investments in consumer cyclicals and communication services, the portfolio is positioned to benefit from growth in these dynamic sectors. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or economic downturns affecting consumer spending. Broadening the sectoral coverage could enhance resilience.

Regions Info

  • North America
    96%
  • Europe Developed
    2%
  • Asia Emerging
    1%

The portfolio's geographic exposure is heavily skewed towards North America (96%), with minimal exposure to international markets. This concentration enhances exposure to U.S. market performance but limits potential gains from global diversification. Expanding into more developed and emerging markets could reduce geographic risk and tap into global growth opportunities.

Market capitalization Info

  • Mega-cap
    47%
  • Large-cap
    33%
  • Mid-cap
    16%
  • Small-cap
    2%

The focus on mega (47%) and big (33%) cap stocks suggests a preference for established companies with a history of stability and growth. While this can offer some protection during market downturns, incorporating more medium and small-cap stocks might provide higher growth potential and further diversification benefits.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund ETF Shares
    Vanguard S&P 500 ETF
    Schwab U.S. Large-Cap Growth ETF
    JPMorgan Nasdaq Equity Premium Income ETF
    Invesco NASDAQ 100 ETF
    High correlation

The high correlation among the ETFs focused on the U.S. stock market indicates overlapping exposures that may not provide the intended diversification benefits. This redundancy can amplify risks during market corrections. Rebalancing to include less correlated assets could enhance the portfolio's risk-adjusted 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.

The current portfolio could benefit from optimization to improve its risk-return profile. Removing overlapping assets and increasing diversification across asset classes, sectors, and geographies could enhance performance. While the Efficient Frontier suggests an ideal mix, practical adjustments should consider personal risk tolerance and investment goals.

Dividends Info

  • JPMorgan Nasdaq Equity Premium Income ETF 11.10%
  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.70%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 2.06%

The portfolio's dividend yield of 2.06% contributes to its total return, combining growth and income. The JPMorgan Nasdaq Equity Premium Income ETF stands out with an 11.10% yield, providing a significant income stream. However, focusing solely on high-yield investments can introduce risks; balancing yield with growth and stability is crucial.

Ongoing product costs Info

  • JPMorgan Nasdaq Equity Premium Income ETF 0.35%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.07%

The portfolio's total expense ratio (TER) of 0.07% is impressively low, maximizing return potential by minimizing costs. Keeping costs low is a fundamental principle of investing that supports better long-term performance. This aspect of the portfolio is well-optimized and aligned with best practices.

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