A speculative growth-focused portfolio with high tech exposure and speculative assets

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

Speculative Investors

This portfolio suits an investor with a speculative mindset, prioritizing high growth potential over stability or income. Such an investor likely has a high risk tolerance, understanding and accepting the volatility and potential for significant drawdowns in pursuit of outsized returns. This profile fits someone with a long-term investment horizon, allowing time to recover from market fluctuations and capitalize on the growth trajectories of high-risk, high-reward assets.

Positions

  • Vanguard Total Stock Market Index Fund ETF Shares
    VTI - US9229087690
    30.51%
  • Vanguard Total International Stock Index Fund ETF Shares
    VXUS - US9219097683
    17.78%
  • NVIDIA Corporation
    NVDA - US67066G1040
    13.38%
  • Alphabet Inc Class C
    GOOG - US02079K1079
    12.22%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF
    JAAA - US47103U8457
    5.82%
  • Eli Lilly and Company
    LLY - US5324571083
    3.75%
  • Invesco NASDAQ 100 ETF
    QQQM - US46138G6492
    3.09%
  • UnitedHealth Group Incorporated
    UNH - US91324P1021
    2.62%
  • Vanguard Emerging Markets Government Bond Index Fund ETF Shares
    VWOB - US9219468850
    1.86%
  • Nebius Group N.V.
    NBIS - NL0009805522
    1.76%
  • Ast Spacemobile Inc
    ASTS - US00217D1000
    1.58%
  • Rocket Lab USA Inc.
    RKLB - US7731221062
    1.35%
  • Rithm Capital Corp.
    RITM - US64828T2015
    1.29%
  • VanEck Semiconductor ETF
    SMH - US92189F6768
    1.24%
  • Achieve Life Sciences Inc
    ACHV - US0044685008
    1.18%
  • Crispr Therapeutics AG
    CRSP - CH0334081137
    0.57%

The portfolio is characterized by a heavy allocation towards technology stocks and ETFs, comprising a significant portion of its composition. It includes a mix of broad market ETFs, individual tech giants, and speculative stocks, with a notable lean towards growth-oriented assets. The diversification across major stock markets and sectors is commendable, yet the portfolio's concentration in technology and communication services presents both opportunities and risks. This structure suggests an aggressive pursuit of growth, leveraging the potential high returns from tech and emerging markets.

Growth Info

Historically, this portfolio has demonstrated an exceptionally high Compound Annual Growth Rate (CAGR) of 68.90%, though it's crucial to note that such performance is accompanied by substantial volatility, as evidenced by a maximum drawdown of -25.37%. The days contributing most to returns are notably few, indicating that much of the portfolio's gains are concentrated in short, significant bursts. This pattern underscores the speculative nature of the investments and suggests that past performance, especially of this caliber, may not be sustainable or indicative of future results.

Projection Info

Monte Carlo simulations, which project future portfolio performance based on historical data, present a wide range of outcomes for this portfolio. The simulations predict potential extreme losses up to -100% in the worst-case scenarios, yet also suggest the possibility of substantial gains, with a median projection of -42.6% and a more optimistic 67th percentile at 312.2%. These projections highlight the speculative nature of the portfolio, emphasizing the high risk and potential for significant reward. However, it's important to remember that these simulations are not guarantees of future performance.

Asset classes Info

  • Stocks
    92%
  • Bonds
    8%
  • Cash
    1%
  • Other
    0%
  • No data
    0%

The portfolio's asset allocation is heavily skewed towards stocks (92%), with a minor allocation in bonds (8%) and a negligible cash position. This composition underscores the investor's high-risk tolerance and growth orientation. While such an allocation can offer substantial growth opportunities, especially in bullish market conditions, it also exposes the portfolio to higher volatility and drawdown risks during market downturns. A more balanced allocation could help mitigate these risks without substantially compromising growth potential.

Sectors Info

  • Technology
    31%
  • Telecommunications
    18%
  • Health Care
    12%
  • Financials
    8%
  • Industrials
    7%
  • Consumer Discretionary
    5%
  • Consumer Staples
    3%
  • Real Estate
    3%
  • Basic Materials
    2%
  • Energy
    2%
  • Utilities
    1%

Sector allocation reveals a significant concentration in technology (31%) and communication services (18%), aligning with the portfolio's growth-focused strategy. While tech sectors have historically provided high returns, this concentration increases sensitivity to sector-specific risks, such as regulatory changes or market sentiment shifts. Diversifying into underrepresented sectors could reduce volatility and provide more stable returns across different market conditions.

Regions Info

  • North America
    73%
  • Europe Developed
    9%
  • Asia Emerging
    3%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    0%
  • Europe Emerging
    0%

Geographically, the portfolio is heavily weighted towards North America (73%), with modest exposure to developed Europe (9%) and emerging markets. This allocation benefits from the stability and growth potential of developed markets but may miss out on the diversification and growth opportunities available in emerging markets. Increasing exposure to underrepresented regions could enhance diversification and potentially capture higher growth rates offered by these markets.

Market capitalization Info

  • Mega-cap
    55%
  • Large-cap
    21%
  • Mid-cap
    11%
  • Small-cap
    3%
  • Micro-cap
    2%

The portfolio's emphasis on mega (55%) and big-cap (21%) stocks aligns with its growth and stability objectives, leveraging the potential of established companies for substantial returns. However, this focus may limit exposure to the higher growth potential of medium, small, and micro-cap stocks, which can offer diversification benefits and outsized returns in bullish phases. Consideration of a more varied market cap distribution could enhance portfolio growth prospects while managing risk.

Redundant positions Info

  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF
    NVIDIA Corporation
    Eli Lilly and Company
    High correlation
  • Invesco NASDAQ 100 ETF
    Vanguard Total Stock Market Index Fund ETF Shares
    VanEck Semiconductor ETF
    High correlation

The analysis identifies highly correlated asset groups within the portfolio, suggesting redundancy that may not contribute to diversification. For instance, overlaps between certain ETFs and individual tech stocks amplify exposure to specific market segments without necessarily spreading risk. Reducing redundancy by reallocating or diversifying away from highly correlated assets could improve the portfolio's overall risk profile.

Dividends Info

  • Alphabet Inc Class C 0.30%
  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 4.90%
  • Eli Lilly and Company 0.40%
  • Invesco NASDAQ 100 ETF 0.50%
  • Rithm Capital Corp. 8.80%
  • VanEck Semiconductor ETF 0.30%
  • UnitedHealth Group Incorporated 2.50%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Emerging Markets Government Bond Index Fund ETF Shares 5.90%
  • Vanguard Total International Stock Index Fund ETF Shares 2.70%
  • Weighted yield (per year) 1.46%

The portfolio's total dividend yield stands at 1.46%, reflecting a focus on growth over income. While dividends contribute to total returns, especially in more conservative or income-focused strategies, this portfolio prioritizes capital appreciation. Investors should consider their income needs and whether a slightly higher allocation to dividend-yielding assets could provide a beneficial balance between growth and income, particularly in volatile or bearish market conditions.

Ongoing product costs Info

  • Janus Detroit Street Trust - Janus Henderson AAA CLO ETF 0.21%
  • Invesco NASDAQ 100 ETF 0.15%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Emerging Markets Government Bond Index Fund ETF Shares 0.20%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.04%

The portfolio's total expense ratio (TER) is notably low at 0.04%, which is advantageous for long-term growth by minimizing the drag on performance due to costs. This efficient cost structure is a positive aspect, especially in a growth-oriented portfolio where every percentage point of return matters. Maintaining low costs while seeking opportunities for diversification and risk management remains a prudent strategy.

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.

Optimizing the portfolio using the Efficient Frontier could enhance its risk-return profile. Before optimization, it's advisable to address the issue of overlapping assets that contribute to redundancy rather than diversification. By reallocating from highly correlated assets to underrepresented sectors or geographies, the portfolio could achieve a more efficient distribution of risk and return, potentially moving closer to the Efficient Frontier without compromising its growth objectives.

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