Growth-oriented portfolio with high concentration in technology and large-cap stocks

Report created on Jul 18, 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 technology, with a significant emphasis on large-cap growth stocks, as evidenced by its 60% allocation to the Schwab U.S. Large-Cap Growth ETF and 30% to the Vanguard Information Technology Index Fund ETF Shares. The VanEck Semiconductor ETF, making up 10% of the portfolio, further concentrates the investment in the technology sector. Such a focused approach suggests a strategy aimed at capitalizing on the growth potential of the tech industry, albeit with a low level of diversification across sectors and asset classes.

Growth Info

Historically, this portfolio has demonstrated a robust Compound Annual Growth Rate (CAGR) of 20.36%, with a significant maximum drawdown of -36.36%. These figures highlight the portfolio's high growth potential, accompanied by considerable volatility. The days contributing to 90% of returns being limited to 39 indicates that the portfolio's performance is highly dependent on specific, short-term market movements, underlining its risk profile.

Projection Info

The Monte Carlo simulation, with 1,000 iterations, projects a wide range of outcomes, reflecting the portfolio's high-risk, high-reward nature. The median projection suggests a potential 1,733.1% increase, with a 5th percentile at a 236.1% increase, showing substantial growth potential. However, the high variance in simulation outcomes underscores the uncertainty and risk inherent in this portfolio.

Asset classes Info

  • Stocks
    100%

Allocation is exclusively in stocks, with no diversification into other asset classes like bonds or real estate. This singular focus on equities, particularly within the technology sector, amplifies both potential returns and volatility. While this can be advantageous in bull markets, it may also expose the portfolio to significant downturns during market corrections or bear markets.

Sectors Info

  • Technology
    69%
  • Telecommunications
    8%
  • Consumer Discretionary
    8%
  • Health Care
    5%
  • Financials
    4%
  • Industrials
    2%
  • Consumer Staples
    1%
  • Basic Materials
    1%

The sectoral allocation heavily favors technology at 69%, with minor allocations to communication services, consumer cyclicals, and other sectors. This concentration in technology not only limits the portfolio's diversification but also ties its performance closely to the tech industry's cyclical nature and sector-specific risks.

Regions Info

  • North America
    98%
  • Asia Developed
    1%
  • Europe Developed
    1%

Geographically, the portfolio is almost entirely invested in North America (98%), with minimal exposure to developed markets in Asia and Europe. This geographic concentration in the U.S. market, while potentially benefiting from the country's economic stability and growth, also exposes the portfolio to regional economic downturns and geopolitical risks.

Market capitalization Info

  • Mega-cap
    58%
  • Large-cap
    26%
  • Mid-cap
    11%
  • Small-cap
    3%
  • Micro-cap
    1%

The focus on mega (58%) and big (26%) cap stocks suggests a preference for established, large companies, likely due to their perceived stability and growth potential. However, the limited exposure to medium, small, and micro-cap stocks restricts opportunities for higher growth rates that these smaller companies might offer, albeit with increased risk.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Vanguard Information Technology Index Fund ETF Shares
    High correlation

The high correlation between the Schwab U.S. Large-Cap Growth ETF and the Vanguard Information Technology Index Fund ETF Shares indicates overlapping investments, which may limit the portfolio's diversification benefits. Reducing asset overlap could help in achieving a more balanced risk-return profile by spreading exposure across less correlated investments.

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 high concentration in technology and large-cap stocks, diversification across different sectors, asset classes, and geographies could reduce volatility and improve risk-adjusted returns. Optimization efforts should focus on minimizing highly correlated assets and exploring opportunities in underrepresented areas to enhance portfolio resilience against sector-specific downturns.

Dividends Info

  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • VanEck Semiconductor ETF 0.40%
  • Vanguard Information Technology Index Fund ETF Shares 0.50%
  • Weighted yield (per year) 0.43%

The portfolio's overall dividend yield of 0.43% reflects a focus on growth over income, consistent with the selection of growth-oriented technology stocks. While dividends contribute to total returns, the low yield suggests that the portfolio's performance is primarily driven by capital appreciation.

Ongoing product costs Info

  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • VanEck Semiconductor ETF 0.35%
  • Vanguard Information Technology Index Fund ETF Shares 0.10%
  • Weighted costs total (per year) 0.09%

With a total expense ratio (TER) of 0.09%, the portfolio benefits from relatively low costs, enhancing net returns over the long term. The low TER is particularly advantageous for a growth-focused portfolio, where the compounding effect of lower costs can significantly impact total investment growth.

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