A tech-centric aggressive growth portfolio with a focus on major US companies
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 an aggressive growth orientation, focused on capital appreciation over income. It is tailored for those with a long-term investment horizon who can withstand significant market fluctuations and periods of underperformance. Ideal for someone comfortable with tech and communication sectors' volatility, believing in these sectors' long-term growth potential.
Positions
-
Advanced Micro Devices Inc
AMD - US0079031078 10.00% -
Arista Networks
ANET - US0404132054 10.00% -
Broadcom Inc
AVGO - US11135F1012 10.00% -
Duolingo Inc
DUOL - US26603R1068 10.00% -
Equinix Inc
EQIX - US29444U7000 10.00% -
Alphabet Inc Class C
GOOG - US02079K1079 10.00% -
Meta Platforms Inc.
META - US30303M1027 10.00% -
Microsoft Corporation
MSFT - US5949181045 10.00% -
NVIDIA Corporation
NVDA - US67066G1040 10.00% -
Super Micro Computer Inc
SMCI - US86800U3023 10.00%
This portfolio is highly concentrated in the technology and communication services sectors, with all positions in common stock and a significant focus on North American, particularly US-based, mega and big cap companies. Each holding represents an equal 10% of the portfolio, demonstrating a strategic but narrow diversification within the tech industry. The allocation mirrors the investor's aggressive risk profile but limits exposure to broader market sectors and international diversification.
Growth
The portfolio has shown an exceptional Compound Annual Growth Rate (CAGR) of 42.55%, with significant volatility as evidenced by a maximum drawdown of -48.41%. The performance is notably concentrated, with 90% of returns generated in just 19 days, indicating high risk and potential for substantial short-term gains. This historical performance, while impressive, underscores the portfolio's aggressive stance and susceptibility to sharp market movements.
Projection
Monte Carlo simulations, running 1,000 scenarios, predict a wide range of outcomes for this portfolio, from a 5th percentile growth of 233.9% to a 67th percentile at 15,627.5%, highlighting the significant upside potential. The simulations show a strong likelihood of positive returns, with 988 out of 1,000 simulations ending positively. However, the vast range underscores the high risk and uncertainty inherent in this aggressive growth strategy.
Asset classes
- Stocks 100%
The portfolio is exclusively allocated to stocks, aligning with an aggressive growth strategy that seeks high returns at the expense of higher risk. While this asset class has historically offered the potential for significant growth, it also comes with increased volatility and risk, especially in market downturns. Diversifying across different asset classes could provide a buffer against this volatility.
Sectors
- Technology 70%
- Telecommunications 20%
- Real Estate 10%
With 70% in technology, 20% in communication services, and 10% in real estate, the portfolio is heavily skewed towards sectors that can exhibit high volatility but also offer substantial growth opportunities. This concentration in tech and related sectors reflects a bullish outlook on these industries but also exposes the portfolio to sector-specific risks, such as regulatory changes or technology shifts.
Regions
- North America 100%
The portfolio's exclusive investment in North American companies, particularly from the US, suggests a strong belief in the region's market leadership, especially in technology and communication services. While this focus capitalizes on the US market's historical strength, it also leaves the portfolio exposed to regional economic and political uncertainties, lacking global diversification that could mitigate such risks.
Market capitalization
- Mega-cap 60%
- Large-cap 40%
The split between mega (60%) and big (40%) cap stocks provides a foundation of established, large companies likely to offer stability relative to smaller caps. However, this focus can limit potential upsides from emerging growth companies and reduces exposure to the diversification benefits smaller companies might offer, especially in rapidly evolving sectors.
Dividends
- Broadcom Inc 0.80%
- Equinix Inc 2.30%
- Alphabet Inc Class C 0.40%
- Meta Platforms Inc. 0.30%
- Microsoft Corporation 0.60%
- Weighted yield (per year) 0.44%
The portfolio's dividend yield averages at 0.44%, which is relatively low, reflecting the growth-oriented nature of the investments. Companies in growth sectors often reinvest profits rather than distribute them as dividends, aligning with the portfolio's aggressive growth strategy but offering limited income generation.
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.
Considering the Efficient Frontier, this portfolio might be optimized by adjusting the allocation to reduce volatility without significantly compromising potential returns. Although the current setup is aggressive, slight adjustments towards more diversified asset classes or sectors could enhance the risk-return profile, aligning closer to the Efficient Frontier's optimal path.
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