A growth-focused portfolio with strong tech exposure and moderate diversification

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.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio suits an investor with a high risk tolerance seeking substantial growth. It is ideal for those with a long-term investment horizon, willing to accept short-term volatility for the potential of higher returns. The focus on technology and Bitcoin indicates a preference for innovative sectors, appealing to investors who are comfortable with market fluctuations. This approach is well-suited for individuals aiming to maximize capital appreciation, though they should be prepared for periods of significant market swings.

Positions

  • Fidelity Wise Origin Bitcoin Trust
    FBTC
    22.42%
  • Vanguard S&P 500 ETF
    VOO - US9229083632
    20.02%
  • Invesco NASDAQ 100 ETF
    QQQM - US46138G6492
    11.41%
  • VanEck Semiconductor ETF
    SMH - US92189F6768
    11.23%
  • Schwab U.S. Dividend Equity ETF
    SCHD - US8085247976
    9.96%
  • Vanguard Small-Cap Value Index Fund ETF Shares
    VBR - US9229086114
    8.83%
  • Vanguard Total International Stock Index Fund ETF Shares
    VXUS - US9219097683
    5.71%
  • Avantis® U.S. Small Cap Value ETF
    AVUV - US0250728773
    4.71%
  • Invesco PHLX Semiconductor ETF
    SOXQ - US46138G6153
    3.76%
  • iShares Bitcoin Trust
    IBIT
    1.95%

The portfolio is primarily composed of ETFs, with notable allocations to technology and Bitcoin-related assets. The largest holdings include the Fidelity Wise Origin Bitcoin Trust and the Vanguard S&P 500 ETF, making up over 40% of the portfolio. This composition leans towards growth, with a significant portion in high-volatility sectors. Compared to a typical balanced portfolio, this one is more aggressive, focusing on potential high returns rather than stability. To enhance diversification, consider increasing exposure to less represented asset classes or sectors, potentially reducing risk.

Warning The historical data covers less than 2 years, which reduces the confidence in the calculated values.

Growth Info

Historically, the portfolio has demonstrated impressive performance with a Compound Annual Growth Rate (CAGR) of 38.12%. The maximum drawdown of -13.27% indicates a notable level of volatility, common in growth-focused portfolios. This suggests that while the portfolio has achieved high returns, it has also experienced significant fluctuations. Comparing this to benchmarks, the portfolio has outperformed typical market indices. However, it's important to remember that past performance doesn't guarantee future results. Consider maintaining a balance between high growth and stability to manage potential risks better.

Warning Due to limited historical data, this may show extreme values that are not realistic.

Projection Info

Forward projections using Monte Carlo simulations suggest a wide range of potential outcomes, with a median return of 6,052.05%. Monte Carlo analysis uses historical data to simulate future performance, providing insight into possible portfolio trajectories. The high variability in projections reflects the portfolio's risk profile, highlighting both opportunities for substantial gains and risks of significant losses. These projections underscore the importance of a long-term investment horizon and the need to periodically reassess the portfolio's risk alignment with personal goals.

Asset classes

  • Stocks
    75%
  • Other
    24%
  • Cash
    0%
  • No data
    0%

The asset allocation is heavily weighted towards stocks at over 75%, with the remainder in alternative investments like Bitcoin. This stock-heavy composition is typical for growth-oriented portfolios but may limit diversification benefits. Compared to a more balanced allocation, this portfolio is positioned for higher potential returns, albeit with increased risk. To enhance diversification, consider incorporating bonds or other asset classes, which can provide stability and potentially reduce portfolio volatility, especially during market downturns.

Sectors

  • Technology
    30%
  • Financials
    9%
  • Consumer Discretionary
    7%
  • Industrials
    7%
  • Health Care
    5%
  • Telecommunications
    5%
  • Consumer Staples
    4%
  • Energy
    3%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Utilities
    1%

The portfolio is heavily concentrated in the technology sector, which constitutes over 30% of the total allocation. This significant tech exposure aligns well with growth strategies but can increase volatility, especially during periods of market uncertainty or rising interest rates. While other sectors like financial services and consumer cyclicals are represented, their smaller allocations may not provide sufficient diversification. To mitigate risk, consider gradually increasing exposure to underrepresented sectors, which can enhance stability and potentially smooth returns over time.

Regions

  • North America
    67%
  • Europe Developed
    4%
  • Asia Developed
    2%
  • Asia Emerging
    1%
  • Japan
    1%
  • Australasia
    0%
  • Latin America
    0%
  • Africa/Middle East
    0%
  • Europe Emerging
    0%

Geographically, the portfolio is predominantly focused on North America, with over 66% of assets allocated there. This concentration exposes the portfolio to regional economic and political risks, potentially affecting performance. While there is some exposure to developed and emerging markets in Europe and Asia, these allocations are minimal. To improve geographic diversification, consider increasing investments in international markets. This can help balance regional risks and take advantage of growth opportunities in other parts of the world, aligning with a global investment strategy.

Redundant positions

  • Avantis® U.S. Small Cap Value ETF
    Vanguard Small-Cap Value Index Fund ETF Shares
    High correlation
  • Fidelity Wise Origin Bitcoin Trust
    iShares Bitcoin Trust
    High correlation
  • Invesco PHLX Semiconductor ETF
    VanEck Semiconductor ETF
    High correlation

The portfolio includes several highly correlated asset pairs, such as small-cap value ETFs and Bitcoin-related trusts. High correlation means these assets tend to move in tandem, which can limit diversification benefits. During market downturns, this could result in increased volatility and potential losses. To enhance diversification, consider replacing some correlated assets with those that have lower correlations. This adjustment can help mitigate risk by ensuring that not all assets react similarly to market changes, potentially smoothing out the portfolio's overall performance.

Dividends

  • Avantis® U.S. Small Cap Value ETF 1.60%
  • Invesco NASDAQ 100 ETF 0.60%
  • Schwab U.S. Dividend Equity ETF 3.60%
  • Invesco PHLX Semiconductor ETF 0.70%
  • Vanguard Small-Cap Value Index Fund ETF Shares 1.40%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 3.30%
  • Weighted yield (per year) 1.08%

The portfolio's overall dividend yield is relatively low at 1.08%, reflecting its growth-oriented nature. While dividends can provide a steady income stream, growth portfolios typically focus on capital appreciation. The Schwab U.S. Dividend Equity ETF contributes a higher yield of 3.6%, offering some income stability. If income generation is a goal, consider increasing allocation to dividend-paying assets. However, for growth-focused investors, maintaining a balance between high-yield and growth stocks can help achieve both capital appreciation and income objectives.

Ongoing product costs

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • iShares Bitcoin Trust 0.12%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • VanEck Semiconductor ETF 0.35%
  • Invesco PHLX Semiconductor ETF 0.19%
  • Vanguard Small-Cap Value Index Fund ETF Shares 0.07%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.08%
  • Weighted costs total (per year) 0.10%

The portfolio's total expense ratio (TER) is impressively low at 0.1%, indicating efficient cost management. Low costs are crucial for enhancing long-term returns, as high fees can erode gains over time. This low TER aligns well with best practices in portfolio management, ensuring that more of the portfolio's returns are retained. Regularly review and compare expense ratios to ensure they remain competitive. If any high-fee assets are identified, consider replacing them with lower-cost alternatives to further optimize cost efficiency.

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.

The portfolio could benefit from risk-return optimization using the Efficient Frontier, which identifies the best possible risk-return ratio for a given set of assets. This process involves adjusting asset weights to achieve the most efficient balance between risk and return. It's important to note that optimization is based on current assets and doesn't necessarily imply diversification. Consider using tools to simulate different allocations and find the optimal balance for your risk tolerance and return expectations, potentially enhancing overall portfolio performance.

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