Growth-focused portfolio with heavy emphasis on US large-cap stocks and technology sector

Report created on Aug 12, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily weighted towards U.S. large-cap stocks, with a significant focus on the technology sector, comprising 43% of the portfolio. The inclusion of three ETFs—Schwab U.S. Large-Cap Growth, SPDR® Portfolio S&P 500, and Invesco S&P 500® Momentum—accounts for 90% of the portfolio, indicating a strong tilt towards growth-oriented large-cap stocks. The remaining 10% is invested in individual tech stocks, NVIDIA and Palantir, enhancing the portfolio's growth potential but also its risk profile due to the high concentration in a single sector.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 24.30%, the portfolio has demonstrated impressive growth. However, the maximum drawdown of -32.47% signals substantial volatility, typical of growth-focused portfolios heavily invested in the technology sector. The days contributing to 90% of returns being limited to 34 indicates that the portfolio's performance is highly reliant on short, significant growth spurts, which can be both an opportunity and a risk.

Projection Info

The Monte Carlo analysis, with 1,000 simulations, suggests a wide range of potential outcomes but leans heavily towards positive growth, with 996 simulations showing positive returns. The median projection of an 11,054.6% return is optimistic, yet it's crucial to remember that such simulations use historical data, which doesn't guarantee future performance. This method helps in understanding potential volatility and the range of outcomes but should be viewed as one of many tools in investment decision-making.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely composed of stocks, showcasing a lack of diversification across asset classes. While stocks have historically provided high returns, they also come with significant volatility. The absence of bonds, real estate, or alternative investments means the portfolio misses out on potential risk mitigation and income generation benefits these asset classes can offer, especially during stock market downturns.

Sectors Info

  • Technology
    43%
  • Financials
    12%
  • Telecommunications
    11%
  • Consumer Discretionary
    11%
  • Industrials
    6%
  • Health Care
    6%
  • Consumer Staples
    5%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    1%
  • Basic Materials
    1%

The sector allocation further emphasizes the growth focus, with technology leading at 43%, followed by financial services, communication services, and consumer cyclicals. This concentration in tech and cyclical sectors increases the portfolio's sensitivity to economic cycles. Diversifying across more defensive sectors like healthcare or utilities could provide stability during market downturns.

Regions Info

  • North America
    100%

The geographic allocation is entirely focused on North America, with no exposure to developed European or Asian markets, nor emerging markets. This geographic concentration in the U.S. market enhances the portfolio's growth potential but also increases its vulnerability to U.S.-specific economic and political risks. Broadening geographic exposure could mitigate some of these risks and tap into growth opportunities in other regions.

Market capitalization Info

  • Mega-cap
    60%
  • Large-cap
    27%
  • Mid-cap
    13%
  • Small-cap
    1%

The majority of the portfolio is allocated towards mega and large-cap stocks, which are typically less volatile than smaller companies but might offer lower growth potential in the long run. The small allocation towards medium, small, and micro caps suggests a cautious approach to risk but may limit exposure to high-growth opportunities in these segments.

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.

Considering the portfolio's current composition and its alignment with the Efficient Frontier, there's room for optimization towards achieving a better risk-return ratio. Adjusting asset allocation to include a broader range of asset classes and sectors could enhance diversification, potentially leading to improved risk-adjusted returns. However, any optimization should carefully consider the investor's growth focus and risk tolerance.

Dividends Info

  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • SPDR® Portfolio S&P 500 ETF 1.20%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Weighted yield (per year) 0.66%

The portfolio's overall dividend yield of 0.66% reflects its growth orientation, as growth stocks typically reinvest earnings rather than pay out dividends. While this supports capital appreciation, it limits income generation, which could be a consideration for investors seeking regular income.

Ongoing product costs Info

  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • SPDR® Portfolio S&P 500 ETF 0.02%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.06%

The portfolio benefits from low total expense ratios (TERs) on its ETFs, averaging 0.06%, which is favorable for long-term growth as lower costs directly contribute to higher net returns. This cost efficiency is a strong aspect of the portfolio, minimizing drag on performance.

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