A growth-focused portfolio with high concentration in tech and large-cap U.S. equities

Report created on Jan 5, 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 ETFs, comprising over 70% of the total allocation, with a significant portion in large-cap U.S. equities. Common stocks form about 27% of the portfolio, with notable positions in Tesla and Amazon. This composition aligns with a growth-oriented strategy. Such a focus can offer substantial growth potential but may also expose the portfolio to higher volatility. Consider adding more diverse asset types like bonds or international equities to balance risk and achieve a more stable performance over time.

Growth Info

With a historical Compound Annual Growth Rate (CAGR) of 19.82%, the portfolio has demonstrated strong growth. However, the max drawdown of -31.06% highlights significant volatility. The performance is impressive compared to standard benchmarks, indicating effective asset selection. Despite this, past performance is not a guarantee of future results. It’s crucial to regularly review and adjust the portfolio to maintain alignment with growth objectives and risk tolerance.

Projection Info

Monte Carlo simulations, which use historical data to predict future outcomes, show a wide range of potential returns. The median projected return is 967.56%, suggesting strong growth potential. However, it's important to remember that these projections are based on historical data and cannot account for future market changes. Regularly reassessing your portfolio's risk exposure and adjusting allocations can help capitalize on favorable market conditions while mitigating potential downturns.

Asset classes Info

  • Stocks
    97%
  • No data
    2%

The portfolio is predominantly invested in stocks, accounting for over 97% of the allocation, with minimal exposure to bonds and cash. This heavy stock allocation aligns with a growth strategy but may increase vulnerability to market volatility. Diversifying into other asset classes, such as bonds or real estate, could provide stability and reduce risk. Balancing growth with security can enhance long-term performance and safeguard against market fluctuations.

Sectors Info

  • Technology
    30%
  • Consumer Discretionary
    18%
  • Industrials
    14%
  • Health Care
    8%
  • Consumer Staples
    8%
  • Telecommunications
    8%
  • Financials
    7%
  • No data
    2%
  • Energy
    1%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

Technology dominates the sector allocation at nearly 30%, followed by consumer cyclicals and industrials. This concentration in tech suggests potential for high returns but also increased exposure to sector-specific risks, such as regulatory changes or tech market downturns. While a tech-heavy portfolio can benefit from innovation-driven growth, consider diversifying into less volatile sectors like healthcare or utilities to mitigate risk and achieve a more balanced sector allocation.

Regions Info

  • North America
    94%
  • Europe Developed
    3%
  • No data
    2%

The portfolio's geographic exposure is heavily concentrated in North America, representing over 93% of the allocation. This focus can benefit from the stability and growth of U.S. markets but limits exposure to international opportunities. To enhance diversification and capture global growth potential, consider increasing allocations in emerging markets or developed regions outside North America. Global diversification can reduce regional risks and improve overall portfolio resilience.

Redundant positions Info

  • Vanguard S&P 500 Growth Index Fund ETF Shares
    Vanguard S&P 500 ETF
    Invesco NASDAQ 100 ETF
    Vanguard Mega Cap Index Fund ETF Shares
    Vanguard Growth Index Fund ETF Shares
    iShares Core Aggressive Allocation ETF
    Fidelity® Blue Chip Growth ETF
    Schwab U.S. Large-Cap Growth ETF
    SPDR® Portfolio S&P 500 Growth ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    High correlation
  • Alphabet Inc Class A
    Alphabet Inc Class C
    High correlation

The portfolio contains several highly correlated assets, particularly among large-cap U.S. ETFs. High correlation means these assets tend to move in tandem, which can limit diversification benefits and increase risk during market downturns. Reducing overlap by selecting ETFs or stocks with lower correlation can improve diversification and enhance risk management. This strategy may lead to a more resilient portfolio that performs well across various market conditions.

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 could be optimized for a better risk-return ratio using the Efficient Frontier concept. This approach focuses on achieving the best possible returns for a given level of risk through optimal asset allocation. However, the current portfolio's high correlation among assets limits diversification benefits. Reducing correlated holdings and reallocating to less correlated assets can enhance efficiency and potentially increase returns without increasing risk.

Dividends Info

  • AAON Inc 0.20%
  • Apple Inc 0.40%
  • iShares Core Aggressive Allocation ETF 1.30%
  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Bank of America Corp 2.20%
  • BAE Systems PLC 2.80%
  • Best Buy Co. Inc 3.40%
  • BlackRock Resources & Commodities Strategy Trust 7.30%
  • Carrier Global Corp 0.80%
  • Fidelity® Blue Chip Value ETF 1.30%
  • Alphabet Inc Class C 0.30%
  • Alphabet Inc Class A 0.30%
  • Garmin Ltd 1.40%
  • SPDR® S&P MIDCAP 400 ETF Trust 0.80%
  • Vanguard Mega Cap Index Fund ETF Shares 0.80%
  • Invesco NASDAQ 100 ETF 0.60%
  • Raytheon Technologies Corp 2.10%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Fidelity® Government Money Market Fund 4.50%
  • SPDR® Portfolio S&P 500 Growth ETF 0.60%
  • Vanguard Consumer Staples Index Fund ETF Shares 1.80%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 1.70%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.30%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.30%
  • Vanguard Growth Index Fund ETF Shares 0.50%
  • Weighted yield (per year) 0.93%

The portfolio's dividend yield is relatively low at 0.93%, indicating a focus on growth rather than income generation. While dividends can provide steady income and help cushion against market volatility, a growth-focused portfolio may prioritize capital appreciation. If income is a goal, consider increasing exposure to high-dividend sectors or funds. Balancing growth and income can provide a more comprehensive approach to achieving financial objectives.

Ongoing product costs Info

  • iShares Core Aggressive Allocation ETF 0.15%
  • Avantis® U.S. Small Cap Value ETF 0.25%
  • BlackRock Resources & Commodities Strategy Trust 1.10%
  • Fidelity® Blue Chip Growth ETF 0.59%
  • Fidelity® Blue Chip Value ETF 0.59%
  • SPDR® S&P MIDCAP 400 ETF Trust 0.24%
  • Vanguard Mega Cap Index Fund ETF Shares 0.07%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • First Trust Cloud Computing ETF 0.60%
  • SPDR® Portfolio S&P 500 Growth ETF 0.04%
  • Vanguard Consumer Staples Index Fund ETF Shares 0.10%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard S&P 500 Growth Index Fund ETF Shares 0.10%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.08%

The portfolio benefits from a low total expense ratio (TER) of 0.08%, which is favorable for long-term returns. Lower costs mean more of your investment gains remain in your portfolio rather than being eaten up by fees. This efficient cost structure supports better performance over time. Continually monitoring and minimizing fees can enhance returns, so consider replacing any high-cost funds with more affordable alternatives to maintain cost efficiency.

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