Growth-focused portfolio with high exposure to US equities and emphasis on technology sector
Report created on Jul 18, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
SC Schwab U.S. Large-Cap Growth ETF
SCHG - US8085243009 60.00% -
VB Vanguard Small-Cap Growth Index Fund ETF Shares
VBK - US9229085959 20.00% -
VO Vanguard Mid-Cap Growth Index Fund ETF Shares
VOT - US9229085389 20.00%
This portfolio is heavily weighted towards U.S. equities, specifically within the growth segment, with a significant emphasis on large-cap stocks through the Schwab U.S. Large-Cap Growth ETF, which constitutes 60% of the portfolio. The remaining 40% is divided equally between Vanguard's Small-Cap and Mid-Cap Growth Index Fund ETF Shares. This composition reflects a clear growth orientation but shows low diversity across asset classes, focusing entirely on stocks with no fixed income, commodities, or cash holdings. The sectoral allocation is heavily skewed towards technology, which may increase volatility and risk.
Growth
Historically, this portfolio has shown a Compound Annual Growth Rate (CAGR) of 15.35%, with a maximum drawdown of -34.71%. These figures indicate a high-growth potential but also a significant risk, as evidenced by the substantial drawdown. The days contributing to 90% of returns being concentrated in such a short period suggest high volatility, where timing the market plays a crucial role in achieving returns, a strategy that is inherently riskier and less predictable than a more diversified approach.
Projection
Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential portfolio values, with the 50th percentile at a 427.1% increase. However, it's important to note that such projections are based on past performance, which is not a reliable indicator of future results. The high percentage of simulations with positive returns (973 out of 1,000) indicates optimism but should be approached with caution, acknowledging the inherent uncertainties in market movements.
Asset classes
- Stocks 100%
The portfolio's asset allocation is entirely in stocks, offering no cushion against equity market downturns through fixed income or other asset classes. This lack of diversification can amplify losses during market corrections. While growth stocks have the potential for high returns, they also come with increased volatility and risk, especially in a market downturn.
Sectors
- Technology 39%
- Consumer Discretionary 13%
- Health Care 10%
- Industrials 10%
- Telecommunications 10%
- Financials 7%
- Real Estate 3%
- Energy 2%
- Consumer Staples 2%
- Basic Materials 2%
- Utilities 1%
With 39% in technology, followed by consumer cyclicals and healthcare, the portfolio is positioned to benefit from growth in these sectors but also risks significant exposure to sector-specific downturns. The heavy reliance on technology stocks, while potentially lucrative, can lead to higher volatility, especially in response to changes in interest rates, regulatory environments, or market sentiment.
Regions
- North America 100%
The geographic allocation is exclusively North American, missing out on potential growth opportunities and diversification benefits available in developed and emerging markets outside the U.S. This concentration increases the portfolio's vulnerability to regional economic shifts and limits exposure to global growth trends.
Market capitalization
- Mega-cap 38%
- Mid-cap 30%
- Large-cap 17%
- Small-cap 12%
- Micro-cap 2%
The market capitalization distribution, with a focus on mega and medium-sized companies, suggests a mix of stability and growth potential. However, the limited exposure to small and micro-cap stocks reduces the portfolio's potential to benefit from the higher growth rates often seen in smaller companies, albeit at a higher risk.
Redundant positions
-
High correlationVanguard Small-Cap Growth Index Fund ETF SharesVanguard Mid-Cap Growth Index Fund ETF Shares
The high correlation between the Vanguard Small-Cap Growth and Mid-Cap Growth Index Fund ETF Shares indicates redundancy, which could limit diversification benefits. In downturns, similar assets tend to fall together, emphasizing the need to include less correlated assets for better risk management.
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 could benefit from diversification beyond highly correlated growth stocks to optimize risk vs. return. Exploring assets with lower correlation, such as fixed income or international equities, could provide a more efficient risk-return profile, potentially moving the portfolio closer to the Efficient Frontier, where the highest possible return is achieved for a given level of risk.
Dividends
- Schwab U.S. Large-Cap Growth ETF 0.40%
- Vanguard Small-Cap Growth Index Fund ETF Shares 0.50%
- Vanguard Mid-Cap Growth Index Fund ETF Shares 0.60%
- Weighted yield (per year) 0.46%
The dividend yields, ranging from 0.40% to 0.60%, contribute modestly to the portfolio's total return. In growth-oriented portfolios, dividends are often a secondary consideration to capital appreciation. However, in volatile markets, dividends can provide a steady income stream and help reduce downside risk.
Ongoing product costs
- Schwab U.S. Large-Cap Growth ETF 0.04%
- Vanguard Small-Cap Growth Index Fund ETF Shares 0.07%
- Vanguard Mid-Cap Growth Index Fund ETF Shares 0.07%
- Weighted costs total (per year) 0.05%
The Total Expense Ratio (TER) of 0.05% is impressively low, which is beneficial for long-term performance. Lower costs mean more of the investment's return is kept by the investor, a crucial factor in the growth of the portfolio over time.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
Compare your holdings
How much do the funds you hold actually overlap with the ones people weigh them against?
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey