Growth-oriented portfolio with a strong emphasis on technology and large-cap stocks

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 higher levels of risk for the potential of significant returns. It's tailored for those with a long-term investment horizon who can withstand market volatility, particularly within the technology sector. The investor likely prioritizes capital appreciation over income and is prepared to maintain their investment through market cycles to achieve growth objectives.

Positions

  • Vanguard S&P 500 ETF
    VOO - US9229083632
    37.00%
  • Invesco QQQ Trust
    QQQ - US46090E1038
    36.00%
  • MFS BLENDED RESEARCH EMERGING MARKETS EQUITY FUND B
    BRKBX - US5529873235
    7.00%
  • Fidelity Contrafund
    FCNTX - US3160711095
    6.00%
  • iShares Russell 1000 Growth ETF
    IWF - US4642876142
    5.00%
  • NVIDIA Corporation
    NVDA - US67066G1040
    5.00%
  • Microsoft Corporation
    MSFT - US5949181045
    4.00%

This portfolio is heavily weighted towards technology, with significant investments in major ETFs like the Vanguard S&P 500 and Invesco QQQ Trust, comprising 73% of the total. The inclusion of specific tech giants and a minor allocation to emerging markets and diversified funds suggests a growth-focused strategy, albeit with a moderate diversification level. The heavy tilt towards technology and large-cap stocks indicates a preference for well-established, high-growth potential companies, but it also introduces sector concentration risk.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 20.23%, the portfolio has demonstrated strong historical performance, outpacing many traditional benchmarks. However, it's important to note that past performance, especially over short and highly volatile periods, is not always indicative of future results. The maximum drawdown of -47.38% underscores the portfolio's susceptibility to significant market corrections, particularly within the technology sector.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of possible outcomes, suggest a wide variance in potential future performance, with a median increase of 2,255.6%. While these projections can provide insight into potential volatility and reward, they are inherently uncertain and depend on past market behavior, which may not predict future trends accurately.

Asset classes Info

  • Stocks
    100%
  • Cash
    0%
  • Other
    0%
  • Not Classified
    0%
  • Bonds
    0%

The portfolio is exclusively invested in stocks, with no allocation to bonds, cash, or other asset classes. This all-equity approach maximizes growth potential but also increases volatility and risk. Diversifying across different asset classes can provide a buffer against stock market fluctuations and reduce overall portfolio risk.

Sectors Info

  • Technology
    46%
  • Telecommunications
    12%
  • Consumer Discretionary
    10%
  • Financials
    9%
  • Health Care
    6%
  • Industrials
    5%
  • Consumer Staples
    5%
  • Energy
    2%
  • Utilities
    2%
  • Basic Materials
    2%
  • Consumer Discretionary
    1%
  • Real Estate
    1%

A 46% allocation to technology underscores a significant sector concentration, enhancing the portfolio's growth potential but also its risk profile. The presence of other sectors, although in smaller proportions, provides some level of diversification. However, the heavy focus on technology and communication services could lead to heightened volatility during sector-specific downturns.

Regions Info

  • North America
    92%
  • Asia Emerging
    4%
  • Asia Developed
    2%
  • Europe Developed
    1%
  • Latin America
    1%
  • Africa/Middle East
    1%
  • Europe Emerging
    0%
  • Japan
    0%
  • Australasia
    0%

The geographic allocation is heavily skewed towards North America (92%), with minimal exposure to emerging and developed markets outside of this region. This concentration benefits from the robust performance of the US market but limits global diversification, potentially missing out on growth opportunities in other regions.

Market capitalization Info

  • Mega-cap
    58%
  • Large-cap
    29%
  • Mid-cap
    12%
  • Small-cap
    1%
  • Micro-cap
    0%

The focus on mega (58%) and big (29%) cap stocks aligns with the portfolio's growth and risk profile, favoring established companies with potentially lower volatility than smaller caps. However, this concentration may limit exposure to high-growth opportunities in the mid and small-cap sectors, which can offer higher returns albeit with increased risk.

Redundant positions Info

  • Fidelity Contrafund
    Invesco QQQ Trust
    iShares Russell 1000 Growth ETF
    Vanguard S&P 500 ETF
    High correlation

The high correlation among the portfolio's core holdings, especially between major ETFs and individual tech stocks, suggests redundancy that does not contribute to diversification. Reducing overlap by reallocating assets can enhance portfolio efficiency by lowering risk without significantly sacrificing returns.

Dividends Info

  • MFS BLENDED RESEARCH EMERGING MARKETS EQUITY FUND B 1.30%
  • Fidelity Contrafund 4.40%
  • iShares Russell 1000 Growth ETF 0.40%
  • Microsoft Corporation 0.60%
  • Invesco QQQ Trust 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 0.99%

The portfolio's overall yield of 0.99% reflects a focus on capital appreciation over income generation. While dividends contribute to total returns, the low yield is consistent with the growth-oriented nature of the portfolio. Investors seeking regular income might consider increasing allocations to higher-yielding assets.

Ongoing product costs Info

  • MFS BLENDED RESEARCH EMERGING MARKETS EQUITY FUND B 1.99%
  • Fidelity Contrafund 0.63%
  • iShares Russell 1000 Growth ETF 0.19%
  • Invesco QQQ Trust 0.20%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.27%

The Total Expense Ratio (TER) of 0.27% is relatively low, enhancing net returns. However, the MFS Blended Research Emerging Markets Equity Fund B, with a 1.99% expense ratio, is an outlier that could drag on performance. Lowering costs by focusing on more cost-efficient funds and ETFs can compound significantly over time, boosting long-term gains.

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 along the Efficient Frontier could improve the risk-return profile by adjusting allocations among the current assets. This process might involve reducing exposure to highly correlated assets and increasing diversification across sectors, geographies, and asset classes to achieve a more efficient balance of risk and return.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

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.