Growth-focused portfolio with high exposure to US tech and large-cap stocks

Report created on Aug 20, 2025

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 growth-oriented profile, comfortable with high risk and focused on capital appreciation over the long term. The investor likely has a longer investment horizon, allowing them to weather short-term market volatility in pursuit of higher returns. The portfolio's concentration in technology and large-cap stocks aligns with an appetite for sectors and companies poised for significant growth, albeit with an acceptance of the associated risks and fluctuations.

Positions

This portfolio is split evenly between the iShares NASDAQ 100 UCITS ETF and the Vanguard S&P 500 UCITS ETF, focusing entirely on equities. Such a composition leans heavily towards large-cap technology and consumer services sectors, reflecting a growth-oriented strategy. However, this also indicates low diversification across asset classes and geographic regions, with a significant concentration in North American markets. The lack of exposure to other asset classes, such as bonds or real estate, and minimal international diversification could increase volatility and risk.

Growth Info

Historically, the portfolio has delivered a Compound Annual Growth Rate (CAGR) of 15.66%, with a maximum drawdown of -31.41%. This performance suggests strong growth potential but comes with significant volatility, as evidenced by the sharp drawdown. The days contributing most to returns highlight the portfolio's susceptibility to market swings. Such historical performance underscores the importance of understanding risk tolerance and the potential for wide fluctuations in portfolio value.

Projection Info

Monte Carlo simulations, using historical data to project future outcomes, suggest a wide range of potential returns for this portfolio. With 995 out of 1,000 simulations showing positive returns, the projections are optimistic. However, the broad range between the 5th and 67th percentiles indicates substantial uncertainty. While these simulations can offer a glimpse into potential futures, they are inherently limited by past data and cannot account for unforeseen market changes.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely invested in stocks, with no allocation to other asset classes such as bonds, commodities, or cash. This single-asset class approach maximizes growth potential but also increases risk, particularly in market downturns when diversification across different asset classes could mitigate losses. Including other asset classes could improve the portfolio's risk-return profile, especially for investors with a lower risk tolerance.

Sectors Info

  • Technology
    44%
  • Telecommunications
    13%
  • Consumer Discretionary
    12%
  • Financials
    7%
  • Health Care
    7%
  • Industrials
    6%
  • Consumer Staples
    5%
  • Utilities
    2%
  • Energy
    2%
  • Basic Materials
    1%
  • Real Estate
    1%

With 44% in technology and significant allocations to communication services and consumer cyclicals, the portfolio is positioned to benefit from growth in these dynamic sectors. However, this concentration also exposes it to sector-specific risks, such as regulatory changes or technological disruptions. Diversifying across a broader range of sectors could reduce volatility and improve long-term stability.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

The portfolio's geographic allocation is overwhelmingly focused on North America (99%), with minimal exposure to developed Europe and no presence in emerging markets or Asia. This concentration benefits from the robust performance of the US market but misses out on potential gains from global diversification. Expanding geographic exposure could capture growth in emerging markets and reduce dependency on the economic cycle of a single region.

Market capitalization Info

  • Mega-cap
    52%
  • Large-cap
    33%
  • Mid-cap
    14%

The emphasis on mega (52%) and big (33%) cap stocks underscores the portfolio's focus on stability and growth potential offered by large, established companies. However, the exclusion of small-cap stocks limits opportunities for higher growth rates these companies can offer. Introducing a mix of medium and small-cap stocks could enhance returns and provide better diversification.

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.

Based on the Efficient Frontier analysis, this portfolio could potentially optimize its risk-return ratio by diversifying across more asset classes and geographic regions. While the current focus on large-cap, US-based equities has historically offered strong returns, the high concentration also increases volatility. Strategic reallocation could achieve a more efficient balance, enhancing returns for the given level of risk.

Dividends Info

  • Vanguard S&P 500 UCITS ETF EUR 1.10%
  • Weighted yield (per year) 0.55%

The portfolio's dividend yield, driven by the Vanguard S&P 500 UCITS ETF, stands at a modest 0.55%. While not the focus of this growth-oriented strategy, dividends can provide a steady income stream and compound growth through reinvestment. For investors seeking income or more balanced growth, increasing exposure to higher dividend-yielding assets could be beneficial.

Ongoing product costs Info

  • iShares NASDAQ 100 UCITS ETF 0.36%
  • Vanguard S&P 500 UCITS ETF EUR 0.07%
  • Weighted costs total (per year) 0.22%

With a total expense ratio (TER) of 0.22%, the portfolio benefits from relatively low costs, which is crucial for long-term growth compounding. Keeping investment costs low is a fundamental principle of investing that directly contributes to net returns. This portfolio aligns well with best practices for cost efficiency, supporting better performance over time.

What next?

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey