A growth oriented US stock portfolio with strong tech tilt and very low 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 setup fits an investor who’s comfortable with meaningful ups and downs in pursuit of strong long‑term growth. Think of someone with a multi‑decade horizon who can tolerate sharp drawdowns of 30% or more without panicking. Goals might include building substantial retirement wealth, funding long‑term family objectives, or growing a legacy portfolio rather than generating immediate income. A moderate‑to‑high risk tolerance is important, along with the discipline to stay invested through rough patches, especially when growth sectors fall out of favor. This personality tends to favor simplicity, low costs, and equity‑heavy exposure, accepting that the price for higher expected returns is living with more volatility along the way.
Positions
-
Vanguard S&P 500 ETF
VOO - US9229083632 59.00% -
Technology Select Sector SPDR® Fund
XLK - US81369Y8030 25.00% -
Avantis® U.S. Small Cap Value ETF
AVUV - US0250728773 8.00% -
SPDR® Portfolio S&P 500 High Dividend ETF
SPYD - US78468R7888 8.00%
This portfolio is almost entirely built from broad US stock ETFs, with one large core fund and three sizable satellite funds. The biggest piece is a broad US index fund, backed by a big overweight in one specific sector plus smaller tilts to small cap value and high dividends. Against a typical growth benchmark, this looks more concentrated and less diversified, especially because everything is in the same asset class. That concentration boosts growth potential but also raises risk in bad markets. To smooth the ride, it could help to trim the largest satellite or add a stabilizing piece like a defensive stock mix or a non‑stock sleeve rather than relying on one country and one asset type.
Growth
Historically, this mix has delivered a very strong compound annual growth rate (CAGR) of 18.43%. CAGR is like average speed on a long road trip: it shows how fast the portfolio grew per year, smoothing out bumps. The trade‑off is a max drawdown of about ‑35%, meaning at one point it was roughly a third below a prior peak. That is typical of an aggressive growth profile, especially with heavy exposure to fast‑moving sectors. Against many broad benchmarks, the return looks excellent but the volatility is also elevated. Since past performance doesn’t guarantee future results, it can help to decide whether this level of drop is emotionally and financially tolerable before the next downturn hits.
Projection
The Monte Carlo analysis uses 1,000 simulations based on historical behavior to estimate many possible future paths. Think of it as running thousands of alternate “futures,” each randomly re‑ordering good and bad years. The median outcome around +681% and high percentile results above +1,000% highlight impressive upside potential, while the 5th percentile of roughly +61% shows that even a poor path still grows, though much less. About 981 of 1,000 runs finish positive, and the simulated annualized return near 19.5% is consistent with the backtest. Still, this method relies heavily on history looking somewhat like the future, which may not hold if interest rates, growth patterns, or sector leadership change meaningfully.
Asset classes
- Stocks 100%
- Cash 0%
- Other 0%
All holdings sit in a single asset class: stocks. That keeps the portfolio simple and clearly aligned with a growth objective, and the equity‑only approach is common among return‑focused investors with long horizons. However, it also explains the low diversification score. When markets fall sharply, there is no built‑in ballast from bonds, cash, or other assets that might lose less or even gain. Compared with more balanced benchmarks that mix stocks with stabilizing assets, this portfolio will likely swing more sharply. Keeping this structure can make sense if the time horizon is long and volatility is acceptable, but adding even a modest cushion outside equities could reduce drawdowns without fully sacrificing growth potential.
Sectors
- Technology 46%
- Financials 11%
- Consumer Discretionary 8%
- Telecommunications 7%
- Health Care 7%
- Industrials 6%
- Consumer Staples 4%
- Energy 4%
- Real Estate 3%
- Utilities 2%
- Basic Materials 2%
Sector exposure is dominated by technology at about 46%, far above typical market‑weight benchmarks. Financials, consumer stocks, communication, and healthcare follow with smaller slices, giving at least some breadth across the economy. A tech‑heavy setup often leads to strong performance when innovation is rewarded and borrowing costs are low, and it aligns with recent market leadership. The flip side is higher sensitivity to changes in interest rates, regulation, or sentiment around growth companies. This concentration explains much of the high return and higher risk. Keeping a tech tilt can be intentional, but gradually dialling it back closer to market‑like levels would likely smooth volatility while still preserving a growth orientation.
Regions
- North America 99%
- Europe Developed 1%
- Asia Emerging 0%
- Latin America 0%
- Africa/Middle East 0%
Geographically, nearly everything is in North America, with only a token allocation elsewhere. This matches a strong home‑country focus and has been beneficial during the long stretch when US markets outperformed many others. It also reduces currency swings, since returns are mostly in the same currency as everyday expenses. Compared with global benchmarks that devote a larger share to international markets, this stance sacrifices some diversification across economies, political systems, and interest‑rate regimes. If global leadership rotates away from the US, returns may lag a more geographically spread approach. Gradually adding a small slice of non‑US exposure could hedge that risk without changing the overall growth profile too dramatically.
Market capitalization
- Mega-cap 38%
- Large-cap 33%
- Mid-cap 18%
- Small-cap 7%
- Micro-cap 4%
Market‑cap exposure is well spread across mega, large, mid, small, and even micro caps, which is a real strength. The core index anchors the portfolio in mega and large companies, while the small cap value ETF and other holdings boost exposure to smaller firms. Smaller companies often move more sharply—both up and down—but can add long‑term growth and diversification within equities. This balance aligns nicely with best practices for equity diversification, covering a broad range of company sizes. The tilt toward small and value also introduces a return “factor” that has historically paid off over very long periods, though it can underperform for multi‑year stretches, which requires some patience to stick with.
Dividends
- Avantis® U.S. Small Cap Value ETF 1.40%
- SPDR® Portfolio S&P 500 High Dividend ETF 4.20%
- Vanguard S&P 500 ETF 1.10%
- Technology Select Sector SPDR® Fund 0.60%
- Weighted yield (per year) 1.25%
The overall dividend yield of about 1.25% sits on the low side, which is normal for a growth‑oriented, tech‑tilted portfolio. The dedicated high‑dividend ETF boosts income somewhat, while the small cap value and broad index funds contribute moderate payouts, and the tech fund pays the least. Dividends can act like a steady paycheck from investments, which some investors like to spend or reinvest. Here, most of the expected return comes from price growth rather than income, so this structure fits goals like long‑term wealth building more than it fits near‑term cash‑flow needs. Anyone wanting more regular income might consider nudging the mix toward higher‑yielding strategies while watching overall risk.
Ongoing product costs
- Avantis® U.S. Small Cap Value ETF 0.25%
- SPDR® Portfolio S&P 500 High Dividend ETF 0.07%
- Vanguard S&P 500 ETF 0.03%
- Technology Select Sector SPDR® Fund 0.09%
- Weighted costs total (per year) 0.07%
Costs are a clear bright spot. With a total expense ratio around 0.07%, this portfolio is impressively low‑cost and compares very favorably to typical active funds. The broad market ETF is especially cheap, and even the priciest holding is still reasonable. Fees work like a slow leak in a tire: the less that seeps out each year, the farther the portfolio can travel over time. This cost discipline strongly supports long‑term performance and leaves more of the return in the investor’s pocket. Maintaining this low‑fee mindset when making any changes—sticking to simple, low‑cost vehicles—would help preserve this advantage without sacrificing diversification or risk control.
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.
On a risk‑return chart, this portfolio sits toward the high‑risk, high‑return side, consistent with its growth profile. The Efficient Frontier is a curve showing the best possible risk‑return ratio achievable using the existing ingredients, just by changing their weights. “Efficient” here simply means maximizing expected return for each level of volatility, not necessarily maximizing diversification or minimizing drawdowns. Given the heavy tech tilt and 100% stock exposure, there’s a good chance the current mix sits slightly inside that frontier. Tweaking the weights—such as moderating the most volatile sleeve and leaning a bit more on the broad core—could move it closer to an efficient point, improving the trade‑off between expected reward and day‑to‑day swings.
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