Concentrated blue chip growth with strong healthcare tilt and room to sharpen risk efficiency
Report created on Jul 22, 2024Risk profile
5/7
Diversification profile
3/5
Positions
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NV Novo Nordisk A/S
NVO - US6701002056 50.00% -
SC Schwab U.S. Broad Market ETF
SCHB - US8085241029 50.00%
The structure here is very simple: two holdings split 50/50, one single stock and one broad US stock market ETF. That means half the money is riding on the fortunes of one company, while the other half is spread across thousands of US stocks. Simplicity can be helpful for tracking and maintenance, but it also creates a clear “hero stock” dynamic. When that one name does well, the whole portfolio benefits; if it stumbles, overall performance takes a big hit. A more balanced mix of several core holdings can keep things simple while softening the impact of any one company’s ups and downs.
Growth
Historically, $1,000 grew to about $2,561, giving a Compound Annual Growth Rate (CAGR) of 9.89%. CAGR is like average speed on a long trip: it smooths all the bumps into one yearly growth number. Over the same period, both the US and global markets grew faster, so this setup lagged common benchmarks. The max drawdown of -45.03% shows the portfolio once fell almost halfway from peak to trough, noticeably deeper than the benchmarks’ roughly -34% drops. That’s a meaningful hit to stomach emotionally. It’s a reminder that concentration in one stock can increase downside even when the broad ETF is relatively stable.
Asset classes
- Stocks 100%
Everything here is in stocks, with 0% in bonds, cash, or alternatives. That’s consistent with a growth-focused profile and a long time horizon, but it also means there’s no built-in cushion from traditionally steadier assets. Pure equity portfolios can deliver strong long-term growth, yet they also tend to experience sharper swings, both up and down. If someone needs near-term withdrawals or is very sensitive to drawdowns, even a small allocation to lower-volatility assets can help smooth the ride. For investors comfortable with more bumps in exchange for higher potential growth, this 100% stock setup lines up well with that mindset.
Sectors
- Health Care 55%
- Technology 16%
- Financials 6%
- Consumer Discretionary 5%
- Industrials 5%
- Telecommunications 5%
- Consumer Staples 2%
- Energy 2%
- Utilities 1%
- Real Estate 1%
- Basic Materials 1%
Sector-wise, there’s a heavy lean toward health care at 55%, largely driven by the single-stock position, with technology the next notable slice at 16%. The rest is spread thinly across other sectors, giving some breadth but clear dominance of one industry. Big health care exposure can be a strength if that sector benefits from innovation or demographic trends, but it can also be sensitive to regulation, pricing pressure, or sentiment shifts. Tech exposure brings extra growth potential and volatility, especially when interest rates move. A more even sector balance would typically track broader markets more closely and reduce the impact of sector-specific shocks.
Regions
- Europe Developed 50%
- North America 50%
Geographically, the split is surprisingly balanced: about 50% in developed Europe and 50% in North America. That’s more international than many US-based portfolios, which often lean far more heavily toward domestic markets. This global spread can help when one region struggles while another does better, smoothing performance over time. Currency movements can add noise: a strong or weak dollar will affect returns from European holdings for a US-based investor. This allocation is well-balanced and aligns closely with global standards, which is a positive sign for geographic diversification, especially given the portfolio’s otherwise concentrated position count.
Market capitalization
- Large-cap 66%
- Mega-cap 21%
- Mid-cap 10%
- Small-cap 3%
- Micro-cap 1%
By market capitalization, most exposure is in large and mega-cap companies, with a smaller allocation to mid, small, and micro caps. Large and mega caps tend to be more established, with deeper markets and often more stable earnings, which can reduce extreme volatility compared with a pure small-cap tilt. The presence of mid and smaller companies adds some extra growth potential and diversification, since they don’t always move in lockstep with giants. Overall, this size mix is close to broad market norms, which is a strong indicator that, aside from the single-stock bet, the underlying size exposure is sensibly diversified.
True holdings
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NV NVIDIA Corporation 3.35%
Part of fund(s):- Schwab U.S. Broad Market ETF
-
AA Apple Inc 2.90%
Part of fund(s):- Schwab U.S. Broad Market ETF
-
MS Microsoft Corporation 2.23%
Part of fund(s):- Schwab U.S. Broad Market ETF
-
AM Amazon.com Inc 1.61%
Part of fund(s):- Schwab U.S. Broad Market ETF
-
GO Alphabet Inc Class A 1.38%
Part of fund(s):- Schwab U.S. Broad Market ETF
-
AV Broadcom Inc 1.20%
Part of fund(s):- Schwab U.S. Broad Market ETF
-
GO Alphabet Inc Class C 1.10%
Part of fund(s):- Schwab U.S. Broad Market ETF
-
ME Meta Platforms Inc. 1.04%
Part of fund(s):- Schwab U.S. Broad Market ETF
-
TS Tesla Inc 0.84%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- Schwab U.S. Broad Market ETF
- Top 10 total 65.66%
Looking through the ETF, the biggest hidden exposures are to large US names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, and Tesla. None of these overlap with the single stock, so there’s no “double counting” in top holdings, which is helpful. Still, the stock side is extremely top-heavy: one company at 50% and no other position above about 3.5%. Also, only the ETF’s top 10 are visible, so actual overlap and small positions beyond that are not fully captured. As a takeaway, the main hidden concentration risk is not duplication, but the sheer size of the single-stock bet.
Factors
Factor exposure shows a notable tilt toward yield (75%) and low volatility (69%), both mildly above market average. Factors are like the underlying “traits” that drive returns: value, size, momentum, quality, yield, and low volatility. A higher yield tilt means more of the return may come from dividends, which can be attractive for income or reinvestment. The low volatility tilt suggests a preference for stocks that historically moved less than the market, often softening some swings. Value is on the low side at 36%, hinting that holdings are more growth-leaning than bargain-priced. These tilts can help during choppy markets, though growthy, low-value names can still fall sharply in broad selloffs.
Risk contribution
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Novo Nordisk A/S
Weight: 50.00% 69.8% -
Schwab U.S. Broad Market ETF
Weight: 50.00% 30.2%
Risk contribution highlights how much each position drives portfolio volatility, which can differ a lot from simple weights. Here, the 50% single stock contributes nearly 70% of overall risk, while the broad ETF, also 50% weight, accounts for only about 30%. It’s like having two instruments in a band, but one is blaring at double the volume. This kind of concentrated risk means portfolio behavior is heavily tied to that one company’s fortunes. Trimming that position and shifting a bit more into diversified holdings would usually bring risk contribution closer in line with weights, making the overall ride smoother without changing the broad growth profile dramatically.
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.
Click on the colored dots to explore allocations.
On the risk–return chart, the current portfolio sits below the efficient frontier, with a Sharpe ratio of 0.48 versus about 0.73 for both the optimal and minimum-variance mixes using the same two holdings. The Sharpe ratio measures return per unit of risk, like how much distance you get for each bump in the road. Being about 2.1 percentage points below the frontier at the same risk level means there’s room to improve the balance of risk and return just by reweighting, without adding new investments. Shifting closer to the minimum-variance or max-Sharpe mix would generally lower volatility and boost expected returns for the level of risk taken.
Dividends
- Novo Nordisk A/S 4.60%
- Schwab U.S. Broad Market ETF 0.90%
- Weighted yield (per year) 2.75%
The combined dividend yield is about 2.75%, with the single stock yielding 4.60% and the US broad ETF at 0.90%. Yield is simply the annual cash payout as a percentage of the current value, and it can be an important part of total return, especially when reinvested. That relatively high yield from the individual company is doing most of the heavy lifting. For investors who like some income on top of growth, this blend strikes a reasonable balance. Just remember dividend policies can change; a cut in the big payer would significantly reduce the overall yield given its large weight.
Ongoing product costs
- Schwab U.S. Broad Market ETF 0.03%
- Weighted costs total (per year) 0.02%
Costs are impressively low. The ETF’s Total Expense Ratio (TER) is only 0.03%, and the overall blended TER comes in around 0.02% since the individual stock has no ongoing fund fee. TER is like a small annual “membership fee” taken out by the fund. Keeping this low is powerful, because even a fraction of a percent saved each year compounds into a sizeable difference over decades. This is one area where the setup is strongly aligned with best practices: minimal fees leave more of the gross return in your pocket, which supports better long-term performance without adding any extra risk.
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