Daring duo of ETFs playing it safe in a tech-dominated sandbox
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 is perfect for the thrill-seeker who loves the tech roller coaster and believes bigger is always better. It's suited for someone with a high risk tolerance, a deep faith in the American market, and a bit of a hero complex for mega-caps. The investor likely has a medium-term horizon, hoping to capitalize on the growth of tech giants without much concern for the bumps along the way. They're the financial equivalent of a person who eats spicy food without flinching but might be overlooking the value of a well-rounded diet.
Positions
-
Invesco NASDAQ 100 ETF
QQQM - US46138G6492 50.00% -
Vanguard Total Stock Market Index Fund ETF Shares
VTI - US9229087690 50.00%
This portfolio is like a high school dance where only two kids show up but still claim it's a party. With just two ETFs splitting the floor 50/50, it's like you're trying to balance on a two-legged stool. The Invesco NASDAQ 100 is your tech-heavy date, bringing all the big-name tech stocks to the party, while the Vanguard Total Stock Market Index is the friend who says they're into "everything" but really just hangs out in the same tech-dominated corner. It's an interesting approach to diversification—like putting all your eggs in two slightly different baskets and hoping one of them contains a golden egg.
Growth
Historically, this portfolio has been like that one friend who always seems to luck out, boasting a CAGR of 16.06%. However, with a max drawdown of -30.14%, it's also had its share of faceplants. It's the financial equivalent of a roller coaster ride where you're screaming in terror half the time but secretly loving the thrill. The days contributing most to returns are fewer than the days in a month, suggesting this portfolio hits the jackpot occasionally but spends a lot of time just milling around, waiting for those big days.
Projection
Monte Carlo simulations with your portfolio suggest you're gambling with a decent chance of winning, but let's not forget, the house always has an edge. With projections ranging wildly, it's like forecasting the weather by looking at the sky; sure, you might get it right, but you're also just as likely to get soaked in the rain. The wide spread between the 5th and 67th percentiles is a polite way of saying, "Buckle up; it's going to be a bumpy ride." Remember, these simulations are educated guesses, not crystal balls.
Asset classes
- Stocks 100%
- Cash 0%
With 100% in stocks and 0% in cash, your portfolio is like a car with only a gas pedal. It's great when you're on the open highway (bull market), but in traffic (market volatility), you might find yourself wishing for a brake pedal or even a seatbelt. Diversification across asset classes is like having different gears; it helps manage speed and control. Right now, you're set for speed but not prepared for sudden stops.
Sectors
- Technology 43%
- Telecommunications 13%
- Consumer Discretionary 12%
- Financials 7%
- Health Care 7%
- Industrials 6%
- Consumer Staples 5%
- Utilities 2%
- Energy 2%
- Basic Materials 2%
- Real Estate 1%
With a whopping 43% in technology, your portfolio is less diversified and more of a fan club for Silicon Valley. It's like going to a buffet and filling your plate with only desserts. Sure, it's delicious and might work out fine in the short term, but eventually, you're going to wish you had some vegetables. The heavy tilt towards tech, while lucrative in recent years, is like betting on the same horse to win every race. Eventually, the odds won't be in your favor.
Regions
- North America 99%
- Europe Developed 1%
- Latin America 0%
- Asia Emerging 0%
- Asia Developed 0%
This portfolio's nearly exclusive focus on North America (99%) showcases a home-country bias that's stronger than a teenager's belief in their own invincibility. With a mere 1% tossed towards developed Europe, it's like acknowledging there's a world out there but choosing to stay in your backyard. While familiar markets feel safe, ignoring the growth potential and diversification benefits of international markets is like refusing to use GPS because you know a shortcut.
Market capitalization
- Mega-cap 49%
- Large-cap 31%
- Mid-cap 15%
- Small-cap 3%
- Micro-cap 1%
Your portfolio's love affair with mega (49%) and big (31%) caps shows a trust in the giants that's almost touching in its innocence. It's like believing in superheroes—comforting, but not always practical. While large companies offer stability, neglecting the growth potential of smaller companies is like refusing to invest in startups because you're only interested in companies that have already made it big. Diversification across market caps can provide balance, offering a mix of stability and growth potential.
Dividends
- Invesco NASDAQ 100 ETF 0.50%
- Vanguard Total Stock Market Index Fund ETF Shares 1.20%
- Weighted yield (per year) 0.85%
With a total yield of 0.85%, your portfolio's dividend strategy is like finding loose change under the couch cushions; it's nice to have but won't pay the bills. While dividends aren't the end-all-be-all, they can provide a steady income stream and a cushion during market downturns. Ignoring dividends is like turning down free money because you're too focused on the big score.
Ongoing product costs
- Invesco NASDAQ 100 ETF 0.15%
- Vanguard Total Stock Market Index Fund ETF Shares 0.03%
- Weighted costs total (per year) 0.09%
At least you're not throwing money away on fees. With a total TER of 0.09%, you've managed to keep costs lower than a limbo stick at a beach party. It's one of the few areas where being cheap pays off, allowing more of your investment to grow rather than getting nibbled away by fees. Kudos for not letting the termites eat into your portfolio's foundation.
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.
Your portfolio's risk-return profile is like a tightrope walker without a safety net; impressive but unnecessarily risky. The Efficient Frontier is a concept that aims for the best possible returns for a given level of risk, but your portfolio seems to be playing a game of chicken with market volatility. Diversifying more broadly across asset classes, sectors, and geographies could help you achieve a better balance, making your financial journey less of a daredevil act and more of a strategic maneuver.
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