Growth-focused portfolio with a strong emphasis on US equities and low diversification

Report created on Aug 16, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

The portfolio is heavily weighted towards US equities, comprising 100% of the asset allocation, with a significant 50% in the iShares Core S&P 500 ETF and 20% in the Schwab U.S. Large-Cap Growth ETF. This is complemented by a 15% allocation each in Avantis® U.S. Small Cap Value ETF and iShares Core S&P Small-Cap ETF. The diversification is low, focusing predominantly on large and small-cap stocks within the US market, reflecting a growth-oriented strategy but with limited exposure to international markets or other asset classes.

Growth Info

Historically, the portfolio has shown a compelling Compound Annual Growth Rate (CAGR) of 17.12%, with a maximum drawdown of -36.34%. This indicates a high-growth potential but comes with significant volatility, as evidenced by the substantial drawdown. The days contributing to 90% of returns being concentrated in just 17 days highlight the portfolio's reliance on short, strong market movements for its gains.

Projection Info

Using Monte Carlo simulations, which project future performance based on historical data, the portfolio shows a wide range of outcomes. The median projection suggests a 599.9% return, with the possibility of returns as high as 1,001.6% at the 67th percentile. However, it's crucial to remember that these projections are speculative and depend on historical market behaviors, which may not predict future movements accurately.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, with no presence in bonds, commodities, or other diversifying asset classes. This single-asset class approach maximizes potential returns but also increases susceptibility to market volatility. Diversifying across different asset classes can help mitigate risk while still allowing for growth.

Sectors Info

  • Technology
    31%
  • Financials
    15%
  • Consumer Discretionary
    13%
  • Industrials
    10%
  • Telecommunications
    8%
  • Health Care
    8%
  • Energy
    4%
  • Consumer Staples
    4%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation leans heavily towards technology (31%), followed by financial services (15%), and consumer cyclicals (13%). This concentration in tech and growth-driven sectors suggests a strategy aimed at capitalizing on market trends and innovations but also increases sensitivity to sector-specific downturns.

Regions Info

  • North America
    99%

Geographically, the portfolio is almost exclusively invested in North America (99%), with no exposure to developed Europe, Latin America, emerging Asia, or other regions. This geographic concentration enhances exposure to US market performance but limits global diversification benefits and exposure to potential growth in other regions.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    22%
  • Small-cap
    16%
  • Micro-cap
    14%
  • Mid-cap
    11%

The market capitalization breakdown shows a balanced exposure across mega (37%), big (22%), small (16%), micro (14%), and medium (11%) caps. This diversification within the US equity market helps balance the risk between established large-cap companies and the higher growth potential of small and micro-cap stocks.

Redundant positions Info

  • Avantis® U.S. Small Cap Value ETF
    iShares Core S&P Small-Cap ETF
    High correlation
  • iShares Core S&P 500 ETF
    Schwab U.S. Large-Cap Growth ETF
    High correlation

The portfolio contains highly correlated asset groups, particularly between the Avantis® U.S. Small Cap Value ETF and iShares Core S&P Small-Cap ETF, as well as between the iShares Core S&P 500 ETF and Schwab U.S. Large-Cap Growth ETF. This redundancy limits the portfolio's diversification benefits, as these assets tend to move in tandem during market fluctuations.

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.

The analysis suggests that removing overlapping assets could streamline the portfolio and enhance diversification. An optimized portfolio, maintaining the same level of risk, could potentially achieve a higher expected return of 21.93%. This optimization underscores the importance of diversification and the strategic selection of non-correlated assets to improve risk-adjusted returns.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • iShares Core S&P Small-Cap ETF 2.10%
  • iShares Core S&P 500 ETF 1.20%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Weighted yield (per year) 1.25%

The overall dividend yield of the portfolio stands at 1.25%, with individual yields ranging from 0.4% to 2.1%. While not the primary focus of this growth-oriented portfolio, dividends contribute to total return and provide a modest income stream, which can be reinvested for compounding growth.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • iShares Core S&P Small-Cap ETF 0.06%
  • iShares Core S&P 500 ETF 0.03%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Weighted costs total (per year) 0.07%

The portfolio's total expense ratio (TER) is impressively low at 0.07%, minimizing the drag on returns due to fees. This efficient cost structure is beneficial for long-term growth, as lower costs translate directly into higher net returns for the investor.

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