A highly aggressive growth portfolio using leverage and concentrated exposure to large cap US technology

Report created on Aug 2, 2024

Risk profile Info

6/7
Aggressive
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

This portfolio is heavily tilted toward US stock index ETFs with a strong growth and leverage flavor. A big positive is that the core holding is a broad US index fund, which aligns well with common benchmarks and gives solid baseline diversification. Around half the holdings are leveraged ETFs, which magnify daily moves and can create very sharp swings in value. This structure makes the portfolio more like a turbocharged version of a standard stock allocation. If the goal is long-term compounding, it can help to decide how much of the portfolio truly needs leverage and how much could sit in simpler, broad-market vehicles that are easier to hold through big drawdowns.

Growth Info

Historically, this mix has delivered very strong performance, with a compound annual growth rate (CAGR) above 26%. CAGR is the “average speed” of growth per year, smoothing out the bumps along the way like an average speed on a road trip. The flip side is a max drawdown of about -42%, meaning at one point the portfolio would have been down that much from a prior peak. It’s also notable that 90% of returns came from just 24 trading days, which is typical of aggressive, equity-heavy portfolios. That pattern underscores how missing a few big up days can meaningfully change long-term outcomes.

Projection Info

The Monte Carlo analysis, which simulates many possible future paths using historical patterns, shows a very wide range of outcomes. In simple terms, Monte Carlo throws “what if” dice thousands of times to see how the portfolio might behave under different market sequences. The median result looks extremely strong, but the lower percentile outcomes are modest, reminding that high-return profiles come with meaningful downside risk. These simulations assume that future volatility and relationships between assets resemble the past, which may not hold. It can be useful to treat the aggressive projections as an upside scenario, while actively stress-testing whether an investor could stay invested through the tougher paths.

Asset classes Info

  • Stocks
    91%
  • Cash
    8%
  • Other
    1%

The portfolio is overwhelmingly in stocks, with only a small slice in cash and other assets. This stock dominance is what drives both the impressive growth potential and the large swings. Compared with a more mixed portfolio that might blend in bonds, real assets, or alternatives, this one is clearly designed for capital growth rather than capital preservation or income. This alignment with an aggressive risk profile is consistent and intentional. Still, even a growth-focused approach can benefit from a small “stability bucket” to help weather downturns emotionally, whether that’s cash or another low-volatility asset that doesn’t move in lockstep with equities.

Sectors Info

  • Technology
    44%
  • Consumer Discretionary
    11%
  • Financials
    10%
  • Telecommunications
    10%
  • Health Care
    7%
  • Industrials
    7%
  • Consumer Staples
    4%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    1%

Sector exposure leans very heavily toward technology, with nearly half the portfolio concentrated there and additional exposure via semiconductors and growth-oriented indices. This kind of tech tilt has been rewarded over the last decade, which is reflected in the strong historical returns, and it aligns with many modern growth benchmarks. The trade-off is that tech-heavy portfolios can be especially sensitive to changes in interest rates, market sentiment, or regulation. When growth sectors fall out of favor, the drawdowns can be steeper than in more balanced sector mixes. It can help to decide how intentional this tech concentration is and whether a slightly broader sector mix would better match long-term comfort.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

Geographically, the portfolio is almost entirely tied to North America, primarily the US. That tight focus has been a tailwind in recent decades because US markets, especially large-cap growth, have outperformed many international regions. This alignment with a US-centric benchmark makes the portfolio easy to understand and follow. The flipside is missing potential diversification benefits from foreign markets, which can sometimes outperform when US stocks lag. Global diversification doesn’t guarantee smoother returns, but it can reduce dependence on one country’s economy, currency, and policy direction. Periodically reassessing whether a pure US approach still fits long-term goals and risk comfort can be helpful.

Market capitalization Info

  • Mega-cap
    40%
  • Large-cap
    29%
  • Mid-cap
    12%
  • Small-cap
    5%
  • Micro-cap
    4%

Market cap exposure leans strongly toward mega and big companies, with more modest slices in mid, small, and micro caps. This skew toward large, well-known firms typically reduces idiosyncratic risk (company-specific blowups) and aligns closely with major indices, which is a plus for tracking overall market behavior. The smaller allocation to small and micro caps, partly via a value tilt, adds some return and diversification potential, but not enough to dramatically change the large-cap dominance. If the aim is to capture the full “market” opportunity set, a slightly larger exposure to smaller companies could be considered, but only if the extra volatility they bring is acceptable.

Redundant positions Info

  • Vanguard S&P 500 ETF
    ProShares Ultra S&P500
    High correlation

Most holdings in this portfolio move in very similar ways, especially the broad S&P 500 ETF and its leveraged counterpart. Correlation measures how often assets move together; high correlation means they tend to rise and fall at the same time, limiting diversification benefits. Here, several ETFs track overlapping indexes, with some simply doing so with leverage. That’s why the diversification score is low despite multiple positions. Reducing overlap by consolidating into fewer, broader vehicles can keep the desired market exposure while simplifying the structure. It’s often more effective to vary the underlying drivers of return than to own multiple versions of the same theme.

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.

From a risk–return standpoint, this portfolio sits far out on the aggressive end, with leverage amplifying both upside and downside. The Efficient Frontier is a concept that maps combinations of the existing holdings that give the best possible trade-off between risk (volatility) and expected return. Optimization here would focus less on adding new assets and more on adjusting weights among the current ones, especially reducing highly overlapping leveraged positions. “Efficient” in this context doesn’t mean safest; it means getting the most expected return for each unit of risk taken. Even small reallocations toward the core broad-market ETF can significantly improve that ratio.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • ProShares Ultra Dow30 0.80%
  • Invesco QQQ Trust 0.50%
  • ProShares Ultra S&P500 0.70%
  • ProShares Ultra Semiconductors 0.30%
  • ProShares Ultra Russell2000 1.00%
  • Vanguard S&P 500 ETF 1.10%
  • Weighted yield (per year) 0.84%

The overall dividend yield of this portfolio is quite low, under 1%, which is completely in line with a growth-focused, tech-heavy, and leveraged setup. Dividends are the cash payments companies make to shareholders; they can provide a “paycheck-like” component to returns. Here, most of the return expectation clearly comes from price appreciation rather than income. That’s perfectly reasonable for someone in an accumulation phase who reinvests gains and doesn’t need regular cash flow. If steady income ever becomes a higher priority, the mix would likely need to tilt toward higher-yielding holdings and away from leverage, since leveraged products typically prioritize price movement over payouts.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • ProShares Ultra Dow30 0.95%
  • Invesco QQQ Trust 0.20%
  • ProShares Ultra S&P500 0.91%
  • ProShares Ultra Semiconductors 0.95%
  • ProShares Ultra Russell2000 0.95%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.36%

For such a specialized, leverage-heavy portfolio, the overall cost level is surprisingly reasonable, with a total expense ratio (TER) around 0.36%. TER is the annual fee charged by funds, expressed as a percentage; lower costs leave more return in your pocket over time. The presence of ultra-low-cost core holdings offsets the higher fees of leveraged ETFs, which often sit near 1%. This cost profile is actually quite efficient given the strategy. Over many years, trimming unnecessary duplication and favoring lower-cost vehicles where they serve the same role can further improve net returns without changing the basic risk exposure.

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