Growth-oriented portfolio with a strong focus on large-cap US stocks and limited international exposure

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

The portfolio is heavily concentrated in U.S. large-cap stocks, with 80% allocated to the Schwab U.S. Large-Cap Growth ETF and the Vanguard S&P 500 ETF, and the remaining 20% in the Vanguard Total World Stock Index Fund ETF Shares. This composition suggests a growth-focused strategy with a significant emphasis on the U.S. market, mirroring the investor's preference for well-established companies. However, the diversification is low, with a high overlap between the ETFs, particularly in sectors like technology and financial services.

Growth Info

Historically, the portfolio has shown a Compound Annual Growth Rate (CAGR) of 15.30% with a maximum drawdown of -33.30%. This performance is indicative of the high-growth potential of large-cap stocks, especially in bullish market conditions. However, the significant drawdown suggests vulnerability during market downturns, emphasizing the need for risk management strategies, such as diversification beyond the current sector and geographic concentrations.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median simulation suggesting a 538.7% return. This forward-looking analysis, while optimistic, should be approached with caution as it relies on historical data and cannot predict unforeseen market shifts. Diversifying the investment beyond highly correlated assets could mitigate some of the risks associated with relying on past performance trends.

Asset classes Info

  • Stocks
    100%

The portfolio is exclusively invested in stocks, with no allocation to other asset classes like bonds or real estate. While stocks are known for their growth potential, they also come with higher volatility. Incorporating other asset classes can reduce portfolio volatility and provide income through interest or dividends, potentially leading to a more balanced risk-return profile.

Sectors Info

  • Technology
    39%
  • Financials
    12%
  • Consumer Discretionary
    11%
  • Telecommunications
    11%
  • Health Care
    9%
  • Industrials
    7%
  • Consumer Staples
    4%
  • Energy
    2%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

The sectoral allocation heavily favors technology, financial services, and consumer cyclicals, which are sectors typically associated with growth but also with higher volatility. The underrepresentation of defensive sectors such as utilities and consumer staples, which tend to be more stable during economic downturns, further underscores the portfolio's aggressive growth stance.

Regions Info

  • North America
    80%

With 80% of assets in North America and no exposure to developed Europe or Asia, the portfolio's geographic diversification is limited. This concentration in the U.S. market exposes the portfolio to region-specific risks, such as policy changes or economic downturns. Expanding into international markets could offer new growth opportunities and reduce geographic risk.

Market capitalization Info

  • Mega-cap
    53%
  • Large-cap
    29%
  • Mid-cap
    15%
  • Small-cap
    2%

The focus on mega and big-cap stocks aligns with the portfolio's growth and stability objectives, given these companies' established market positions. However, the minimal exposure to small and micro-cap stocks limits potential high-growth opportunities in emerging companies and sectors, which could offer outsized returns in exchange for higher risk.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Schwab U.S. Large-Cap Growth ETF
    Vanguard Total World Stock Index Fund ETF Shares
    High correlation

The high correlation among the ETFs suggests redundancy, which may limit the portfolio's diversification benefits. This overlap, particularly in large-cap U.S. stocks, underscores the need to reassess the asset mix to enhance diversification, potentially by introducing non-correlated assets that can offer new sources of return and risk mitigation.

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 portfolio's risk-return profile could benefit from an optimization process focusing on the Efficient Frontier. This would involve reassessing the allocation to reduce overlap and introduce assets that are less correlated, thereby potentially improving the portfolio's diversification and risk-adjusted returns without necessarily sacrificing growth potential.

Dividends Info

  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Vanguard S&P 500 ETF 1.20%
  • Vanguard Total World Stock Index Fund ETF Shares 1.70%
  • Weighted yield (per year) 0.98%

The dividend yields, ranging from 0.40% to 1.70%, contribute to the portfolio's total return. While the focus on growth stocks typically results in lower dividend yields, these payments provide a source of income, which can be reinvested for compounding growth or used as a cash flow in market downturns.

Ongoing product costs Info

  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Vanguard S&P 500 ETF 0.03%
  • Vanguard Total World Stock Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.04%

The low total expense ratio (TER) of 0.04% is commendable, as it minimizes the drag on returns over time. Keeping investment costs low is crucial for enhancing long-term portfolio growth, especially in a growth-oriented strategy where every percentage point counts towards achieving financial goals.

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