Growth-oriented portfolio heavily focused on tech and large-cap stocks with low diversification

Report created on Aug 16, 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.

Positions

This portfolio is highly concentrated, with 60% in a Vanguard S&P 500 ETF and 40% in an Invesco NASDAQ 100 ETF, making it 100% invested in stocks. Such a composition leans heavily towards large-cap equities, particularly in the technology sector, given the significant weight of tech companies in both ETFs. This concentration enhances growth potential but also increases volatility and risk, especially since it lacks diversification across asset classes and geographic regions.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 16.24% and a maximum drawdown of -28.52%, the portfolio has demonstrated strong growth with significant volatility. The days contributing most to returns indicate that gains are concentrated in short bursts, which is typical for growth-focused investments. While past performance is impressive, it's important to remember it doesn't guarantee future results, especially in a highly concentrated portfolio where risk is more pronounced.

Projection Info

Monte Carlo simulations, which use historical data to forecast potential outcomes, suggest a wide range of future portfolio values, emphasizing the uncertainty inherent in investing. While the majority of simulations show positive returns, the spread between the 5th and 67th percentiles underscores the high risk and potential reward of this portfolio. However, reliance on past trends means these projections can't predict new market conditions or shifts in sector performance.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks, without any allocation to bonds, real estate, or other asset classes, maximizes growth potential but also increases susceptibility to market downturns. Diversifying across asset classes can reduce volatility and provide steadier returns over time, especially during stock market corrections or bear markets.

Sectors Info

  • Technology
    41%
  • Telecommunications
    12%
  • Consumer Discretionary
    12%
  • Financials
    8%
  • Health Care
    8%
  • Industrials
    6%
  • Consumer Staples
    6%
  • Utilities
    2%
  • Energy
    2%
  • Basic Materials
    2%
  • Real Estate
    1%

The heavy emphasis on technology (41%) aligns with the growth objective but introduces sector-specific risks, such as regulatory changes or shifts in consumer preferences. While the portfolio covers other sectors, the dominant technology weighting may lead to higher volatility. Balancing sector exposure can mitigate some of this risk while still capturing growth opportunities.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

With 99% of assets in North America, the portfolio's geographic diversification is minimal, exposing it to region-specific economic and political risks. Expanding into developed European or Asian markets, or even emerging markets, could offer additional growth opportunities and risk mitigation through geographic diversification.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    34%
  • Mid-cap
    15%
  • Small-cap
    1%

The focus on mega (50%) and big (34%) cap stocks supports the portfolio's growth and stability objectives, as these companies tend to be more resilient during market fluctuations. However, the small allocation to medium and small-cap stocks limits exposure to potentially higher growth opportunities in those segments.

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 Efficient Frontier, there may be opportunities to optimize the risk-return ratio by adjusting the allocation between the current assets or by introducing new asset classes or sectors. This optimization seeks to maintain or enhance returns while potentially reducing volatility, aligning the portfolio more closely with the investor's risk tolerance and investment goals.

Dividends Info

  • Invesco NASDAQ 100 ETF 0.50%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.92%

The dividend yield of 0.92% adds an income component to the portfolio, which can provide a buffer during market downturns or add to total returns in growth periods. While not the focus of a growth-oriented portfolio, dividends contribute to compounding returns over time, enhancing long-term growth.

Ongoing product costs Info

  • Invesco NASDAQ 100 ETF 0.15%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.08%

The portfolio benefits from low management costs, with a total Expense Ratio (TER) of 0.08%, allowing more of the investment returns to compound over time. Lower costs are crucial for long-term investment success, especially in growth portfolios where every percentage point of return matters.

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