A high-growth focused portfolio with heavy tech exposure and aggressive risk profile

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

Aggressive Investors

This portfolio suits an investor with a high risk tolerance and a focus on long-term capital growth. The heavy allocation to technology stocks and the aggressive positioning in large-cap equities indicate a preference for sectors with high growth potential. Ideal for those comfortable with significant market fluctuations, this strategy is best suited for investors who have a longer time horizon to ride out volatility and capitalize on the growth trajectory of leading innovations and market trends.

Positions

  • NVIDIA Corporation
    NVDA - US67066G1040
    48.20%
  • Vanguard Total Stock Market Index Fund ETF Shares
    VTI - US9229087690
    19.60%
  • Alibaba Group Holding Ltd
    BABA - US01609W1027
    6.29%
  • Schwab U.S. Large-Cap Growth ETF
    SCHG - US8085243009
    4.50%
  • Vanguard Total International Stock Index Fund ETF Shares
    VXUS - US9219097683
    4.36%
  • AbbVie Inc
    ABBV - US00287Y1091
    3.22%
  • Apple Inc
    AAPL - US0378331005
    2.98%
  • Invesco NASDAQ 100 ETF
    QQQM - US46138G6492
    2.91%
  • ONEOK Inc
    OKE - US6826801036
    1.88%
  • iShares Core Dividend Growth ETF
    DGRO - US46434V6213
    1.78%
  • ARK Fintech Innovation ETF
    ARKF - US00214Q7088
    1.33%
  • Schwab U.S. Dividend Equity ETF
    SCHD - US8085247976
    1.03%
  • Financial Select Sector SPDR® Fund
    XLF - US81369Y6059
    0.68%
  • Bristol-Myers Squibb Company
    BMY - US1101221083
    0.62%
  • Pinterest Inc
    PINS - US72352L1061
    0.38%
  • Schrodinger Inc
    SDGR - US80810D1037
    0.23%

The portfolio is heavily weighted towards technology, with a notable 48.20% allocation in NVIDIA Corporation alone, suggesting a strong conviction in the tech sector's growth potential. The inclusion of broad market ETFs like the Vanguard Total Stock Market Index Fund ETF and sector-specific ETFs further diversifies the holdings, albeit moderately. However, the concentration in a single stock significantly increases the portfolio's risk profile, potentially exposing it to higher volatility.

Growth Info

Historical performance showcases a remarkable Compound Annual Growth Rate (CAGR) of 39.30%, outpacing many benchmarks. This impressive return is tempered by a substantial maximum drawdown of -49.80%, highlighting the portfolio's aggressive risk stance. The days contributing most to returns indicate that gains are concentrated in specific periods, suggesting volatility and the importance of timing in this investment strategy.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median potential growth of 416.3% and a notable 19.70% annualized return across all simulations. While these projections are based on historical data and cannot guarantee future performance, they underscore the portfolio's high-growth potential. However, the significant spread in potential outcomes, especially the 5th percentile at -54.1%, also illustrates the high risk involved.

Asset classes Info

  • Stocks
    100%
  • Cash
    0%
  • Other
    0%
  • No data
    0%

The portfolio is exclusively invested in stocks, aligning with an aggressive growth strategy. This singular focus on equities offers high return potential but lacks the risk mitigation benefits that fixed income or alternative investments could provide. Diversifying across asset classes could help smooth returns over time, especially during stock market downturns.

Sectors Info

  • Technology
    63%
  • Consumer Discretionary
    10%
  • Health Care
    7%
  • Financials
    6%
  • Telecommunications
    4%
  • Industrials
    3%
  • Energy
    3%
  • Consumer Staples
    2%
  • Basic Materials
    1%
  • Utilities
    1%
  • Real Estate
    1%

With 63% of the portfolio in technology, the sectoral allocation underscores a bullish outlook on tech. While this concentration has likely contributed to the portfolio's high historical returns, it also increases susceptibility to sector-specific risks. Balancing the sector exposure by incorporating more representation from underrepresented sectors could reduce volatility without significantly compromising growth potential.

Regions Info

  • North America
    89%
  • Asia Developed
    7%
  • Europe Developed
    2%
  • Asia Emerging
    1%
  • Japan
    1%
  • Australasia
    0%
  • Africa/Middle East
    0%
  • Latin America
    0%
  • Europe Emerging
    0%

The geographic allocation is heavily skewed towards North America, particularly the U.S., with 89% of the portfolio. This concentration benefits from the robust performance of U.S. markets but limits exposure to potential growth in other regions. Increasing allocations to developed and emerging markets outside the U.S. could enhance diversification and capture global growth opportunities.

Market capitalization Info

  • Mega-cap
    76%
  • Large-cap
    14%
  • Mid-cap
    7%
  • Small-cap
    2%
  • Micro-cap
    0%

The focus on mega-cap stocks, constituting 76% of the portfolio, aligns with the portfolio's growth and risk profile, as these companies often offer stability and strong growth prospects. However, the limited exposure to smaller cap stocks may mean missing out on higher growth potential these companies can offer, albeit with higher risk.

Redundant positions Info

  • Schwab U.S. Dividend Equity ETF
    iShares Core Dividend Growth ETF
    High correlation
  • Schwab U.S. Large-Cap Growth ETF
    Invesco NASDAQ 100 ETF
    High correlation

The portfolio contains highly correlated assets, particularly within ETFs tracking similar sectors or themes, which may reduce the effectiveness of diversification. Identifying and reducing overlap can help in achieving a more efficient risk-return profile by ensuring that each holding contributes uniquely to the portfolio's performance.

Dividends Info

  • Apple Inc 0.40%
  • AbbVie Inc 2.80%
  • Alibaba Group Holding Ltd 1.10%
  • Bristol-Myers Squibb Company 5.50%
  • iShares Core Dividend Growth ETF 2.00%
  • ONEOK Inc 5.60%
  • Invesco NASDAQ 100 ETF 0.50%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard Total Stock Market Index Fund ETF Shares 1.10%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Financial Select Sector SPDR® Fund 1.40%
  • Weighted yield (per year) 0.77%

The overall dividend yield of the portfolio is relatively low at 0.77%, reflecting the growth-focused investment strategy. While dividends are not the primary goal, the inclusion of some high-dividend-yielding assets could provide a steady income stream and potential tax advantages, complementing the portfolio's growth components.

Ongoing product costs Info

  • ARK Fintech Innovation ETF 0.75%
  • iShares Core Dividend Growth ETF 0.08%
  • Invesco NASDAQ 100 ETF 0.15%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard Total Stock Market Index Fund ETF Shares 0.03%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Financial Select Sector SPDR® Fund 0.09%
  • Weighted costs total (per year) 0.03%

The Total Expense Ratio (TER) of the portfolio is notably low, enhancing net returns. This cost efficiency is commendable, especially given the diversified mix of ETFs and individual stocks. Maintaining low investment costs is crucial for long-term growth, as even small differences in fees can compound into significant impacts over time.

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.

The Efficient Frontier analysis suggests that the portfolio could benefit from rebalancing to reduce overlapping assets and better diversify across sectors and geographies. This optimization aims to improve the risk-return ratio, potentially achieving similar or higher returns with lower volatility by adjusting the current asset allocation.

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