Growth-focused portfolio with a strong tilt towards technology and US equities

Report created on Jul 9, 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 in U.S. equities, with a significant focus on technology and large-cap stocks. It includes a mix of growth, dividend, and small to mid-sized company exposure through ETFs. The allocation towards the VanEck Semiconductor ETF and a substantial portion in U.S. large-cap growth and dividend-paying stocks suggests a strategy leaning towards growth with an eye on income. However, the international exposure is limited, concentrated in a single ETF. This composition aligns with a growth-oriented investment strategy but may benefit from greater diversification across geographies and sectors.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 16.79% and a maximum drawdown of -34.20%, the portfolio has demonstrated strong growth potential albeit with significant volatility. The days contributing most to returns indicate that the portfolio's performance is likely driven by a few strong market days. While past performance is impressive, it's crucial to remember that it does not guarantee future results. The high growth rate is typical for portfolios with a heavy emphasis on technology and growth stocks, which can be more volatile.

Projection Info

The Monte Carlo simulation, using historical data to project future performance, suggests a wide range of outcomes with a median increase of 753.3%. However, it's important to note that such simulations have limitations and depend heavily on past market conditions. They do not account for unexpected future events that could significantly impact the market. Therefore, while these projections provide a helpful insight into potential future performance, they should be considered as part of a broader investment strategy review.

Asset classes Info

  • Stocks
    100%
  • Cash
    1%

The portfolio is almost entirely invested in stocks, with a negligible cash position. This allocation supports a growth-focused strategy but comes with higher risk, especially in market downturns. Diversifying across different asset classes, such as bonds or real estate, could reduce volatility without necessarily compromising long-term growth potential. The current asset class distribution matches the portfolio's growth profile but may not adequately protect against market fluctuations.

Sectors Info

  • Technology
    33%
  • Financials
    12%
  • Consumer Discretionary
    10%
  • Industrials
    10%
  • Health Care
    9%
  • Consumer Staples
    7%
  • Telecommunications
    7%
  • Energy
    6%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Utilities
    1%

The technology sector dominates the portfolio, representing a third of the allocation. While this has likely contributed to the portfolio's high historical returns, it also increases vulnerability to sector-specific risks. The presence of financial services, consumer cyclicals, and industrials provides some diversification, but the heavy technology tilt suggests a risk of high volatility during tech sector downturns. Broadening sector exposure could mitigate this risk and potentially smooth out returns over time.

Regions Info

  • North America
    88%
  • Europe Developed
    5%
  • Asia Developed
    2%
  • Asia Emerging
    2%
  • Japan
    2%

The geographic allocation heavily favors North America, particularly the U.S., with minimal exposure to international markets. This concentration enhances the portfolio's exposure to the performance of the U.S. economy and its currency, potentially missing out on growth opportunities in emerging markets and other developed economies. Increasing international diversification could reduce geographic risk and tap into growth outside the U.S.

Market capitalization Info

  • Large-cap
    31%
  • Mega-cap
    31%
  • Mid-cap
    19%
  • Small-cap
    14%
  • Micro-cap
    4%

The portfolio's market capitalization exposure is balanced between big and mega-cap stocks, with smaller allocations to medium, small, and micro-caps. This balance leans towards more stable, established companies but may limit potential high-growth opportunities found in smaller companies. Considering a slight increase in small to mid-cap exposure could enhance growth prospects, albeit with added risk.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    SPDR® Portfolio S&P 500 ETF
    High correlation

The high correlation between the Schwab U.S. Large-Cap Growth ETF and the SPDR® Portfolio S&P 500 ETF indicates redundancy, which may not be adding value in terms of diversification. Reducing overlap by reallocating assets from one of these ETFs to underrepresented sectors or geographies could enhance portfolio diversification and potentially reduce volatility without sacrificing growth.

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's current risk-return profile could be optimized by addressing the overlap between highly correlated assets. Utilizing the Efficient Frontier concept could help in reallocating assets to achieve a better risk-return balance. This process involves adjusting the portfolio to a point where no additional expected return can be achieved without taking on more risk. Considering diversification across more asset classes and geographies could also move the portfolio towards an optimal position on the Efficient Frontier.

Dividends Info

  • Fidelity Small-Mid Factor 1.30%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • VanEck Semiconductor ETF 0.40%
  • SPDR® Portfolio S&P 500 ETF 1.20%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 1.66%

The portfolio's overall dividend yield of 1.66% contributes to its total return, balancing between growth and income. The Schwab U.S. Dividend Equity ETF's higher yield is a significant contributor, supporting income alongside capital appreciation. For investors valuing income, maintaining or slightly increasing exposure to high-dividend ETFs could be beneficial, especially in volatile markets where dividends can provide a steady income stream.

Ongoing product costs Info

  • Fidelity Small-Mid Factor 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • VanEck Semiconductor ETF 0.35%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.09%

The portfolio's total expense ratio (TER) of 0.09% is impressively low, maximizing the potential for net returns. Keeping costs low is crucial for long-term investment success, as high fees can significantly erode returns over time. The portfolio's cost efficiency is a strong point, suggesting careful selection of low-cost ETFs.

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