A tech-heavy aggressive portfolio with significant exposure to leading US companies

Report created on Aug 2, 2025

Risk profile Info

6/7
Aggressive
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is predominantly invested in technology and consumer cyclical sectors, with a substantial concentration in a few high-growth companies like NVIDIA, Amazon, and Meta Platforms. This concentration in tech giants, alongside the inclusion of the Vanguard S&P 500 ETF, suggests a strategy focused on growth through market leaders in innovation and e-commerce. However, this approach also introduces a high level of risk, given the volatility associated with tech stocks and the limited diversification across other sectors and asset classes.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 34.35%, the portfolio has demonstrated impressive growth, significantly outperforming many traditional benchmarks. This high return rate is indicative of the strong performance of tech stocks in recent years. However, the maximum drawdown of -57.31% signals a high volatility and potential for substantial losses, which is characteristic of aggressive growth portfolios. The days contributing to 90% of returns highlight the portfolio's susceptibility to sharp, short-term gains, underscoring the importance of timing in such strategies.

Projection Info

Monte Carlo simulations project a wide range of outcomes, from a 5th percentile loss of -74.2% to a 67th percentile gain of 1,842.9%. This significant variance underscores the high-risk, high-reward nature of the portfolio. While 85% of simulations predict positive returns, the potential for extreme losses cannot be ignored. These projections, while useful, are based on historical data and cannot guarantee future performance, especially in a portfolio heavily weighted in volatile sectors.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no diversification into other asset classes such as bonds or real estate. This singular focus on equities, particularly in high-growth sectors, maximizes potential returns but also increases risk. Diversifying across different asset classes can mitigate risk by providing a buffer against stock market volatility, as different asset classes often move independently of one another.

Sectors Info

  • Technology
    47%
  • Consumer Discretionary
    26%
  • Telecommunications
    16%
  • Financials
    3%
  • Health Care
    2%
  • Industrials
    2%
  • Consumer Staples
    1%
  • Energy
    1%
  • Utilities
    1%

The sectoral allocation reveals a heavy emphasis on technology (47%) and consumer cyclicals (26%), with minimal exposure to other sectors. This concentration in sectors known for their growth potential aligns with the portfolio's aggressive stance but also exposes it to sector-specific risks, such as regulatory changes or shifts in consumer behavior. Broadening the sectoral exposure could reduce volatility and improve the portfolio's resilience to sector-specific downturns.

Regions Info

  • North America
    97%
  • Asia Emerging
    2%

Geographically, the portfolio is heavily skewed towards North American markets, particularly the US, with minimal exposure to emerging markets or other developed regions. This focus on the US market leverages the country's technological leadership and innovation but also limits global diversification. Expanding geographic exposure could mitigate risks associated with regional economic downturns or political instability.

Market capitalization Info

  • Mega-cap
    84%
  • Large-cap
    12%
  • Mid-cap
    4%

The portfolio's emphasis on mega-cap stocks (84%) reflects a strategy aimed at investing in established, high-growth companies. While these companies often offer stability and strong growth potential, their large market capitalizations mean they have less room for explosive growth compared to smaller companies. Incorporating a mix of mid and small-cap stocks could introduce higher growth potential at the cost of increased volatility.

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 portfolio's aggressive growth focus and high-risk profile, optimizing for the Efficient Frontier could improve the risk-return ratio. This optimization involves adjusting the allocation between the current assets to achieve the best possible balance of risk and return. While the portfolio already demonstrates strong growth, there may be opportunities to reduce volatility without significantly compromising potential returns, thereby moving closer to the Efficient Frontier.

Dividends Info

  • Intel Corporation 0.60%
  • Meta Platforms Inc. 0.30%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.32%

The portfolio's overall dividend yield is relatively low at 0.32%, reflecting its focus on growth over income. In aggressive growth strategies, reinvesting earnings rather than distributing them as dividends can fuel further expansion. However, incorporating dividend-paying assets could provide a steady income stream, which can be particularly beneficial during market downturns or for investors seeking regular income.

Ongoing product costs Info

  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.01%

The portfolio benefits from low costs, with the Vanguard S&P 500 ETF featuring a very low expense ratio of 0.03%, contributing to a total portfolio expense ratio (TER) of just 0.01%. This efficient cost structure enhances net returns, a crucial factor in long-term investment performance. Maintaining low costs is vital, especially in a high-growth strategy where the impact of fees on compounded returns can be significant.

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